Lets bank the Islamic way?

[livingdead]

The current crises was due to irresponsible lending by the bankers, they ignored the guidlines and handed money to everyone. if this happens in any system, it causes problem.

And after the crisis they have become so shy of lending in the UK, they have brought the economy to standstill.
Ultra conservative banking system, which shuts out SME which is going to drive the growth, is not good for anybody here in UK.

 

[Ahmad]

VAT is paid by both rich and poor( like all indirect taxes). Do you want poor people to be taxed at same rate as middle class and rich people? Why?

I am not against VAT btw.

we are talking about the UK here lol. those who are on benefit are probably better than those who work like me. they get everythig for free while we pay taxes. and in many cases they do work in black market which is extra cash for them.

 

[livingdead]

we are talking about the UK here lol. those who are on benefit are probably better than those who work like me. they get everythig for free while we pay taxes. and in many cases they do work in black market which is extra cash for them.

I would not paint all those who are on welfare as cheats. Sure there needs to be an overhaul of the welfare system, which stops all these frauds. The new govt is already trying to make sure nobody is worse off by working(dont know how good they will be in implementation).
I would say even with all these cheats, an welfare state is more humane, there will still be people who are relatively poor in a rich country who needs help.
I am not against VAT, was just pained to see you taking such an anti poor stand. And no I am not a commie.

 

[LEGENDARY WARRIOR]

SOME FEATURES OF ISLAMIC BANKING IN US (WITH THE NAME OF LARIBA):

-- It agrees to form a conceptual partnership with client to buy the property together

-- The Partnership rents the property to whoever is interested in renting it, in this case the client out of his/her free will

-- In response to client’s expression of intent out of his/her free will, agrees to sell its share to the client over a period of time at the same amount/price the bank paid for it at the start WITHOUT CHARGING INTEREST.

-- It does not encumber the future client's home ownership by placing its name on the Title of Client's House. This way the safety of the house will not be compromised and the client may not be a part of a dispute in case the company faces trouble.

-- Islamic financing allows clients to enjoy the tax advantages of traditional real estate financing while avoiding the Riba aspects.

-- The repayment terms are structured to fit client's cash flow needs with payback periods of up to 30 years.

-- One can buy back our share at any time by making additional payments WITHOUT PENALTY.

-- There is Partnership fees and NO HIDDEN fees.

 

[nForce]

SOME FEATURES OF ISLAMIC BANKING IN US (WITH THE NAME OF LARIBA):

-- It agrees to form a conceptual partnership with client to buy the property together

-- The Partnership rents the property to whoever is interested in renting it, in this case the client out of his/her free will

-- In response to client’s expression of intent out of his/her free will, agrees to sell its share to the client over a period of time at the same amount/price the bank paid for it at the start WITHOUT CHARGING INTEREST.

-- It does not encumber the future client's home ownership by placing its name on the Title of Client's House. This way the safety of the house will not be compromised and the client may not be a part of a dispute in case the company faces trouble.

-- Islamic financing allows clients to enjoy the tax advantages of traditional real estate financing while avoiding the Riba aspects.

-- The repayment terms are structured to fit client's cash flow needs with payback periods of up to 30 years.

-- One can buy back our share at any time by making additional payments WITHOUT PENALTY.

-- There is Partnership fees and NO HIDDEN fees.

okay..what does the bank gain from this?
Say,you are the bank.Why are you doing all this?How do you and your employee benefit?

 

[JustForFun]

You people pay 19% VAT in Netherlands? wow..thats really high..

Off Topic:
Taxes have to be paid to keep a country running, so no problem with that. This is essentaily one of the big causes of the Greek problem, people and companies (and even government agencies) not paying their taxes. Income tax is something between 33% and 50% depending on your income.
Just wanted to make clear that just swapping the word "interrest" with "rent" is not enough for islamic banking. The whole structure of ownership and taxation has to be adapted to it.

 

[nForce]

Off Topic:
Taxes have to be paid to keep a country running, so no problem with that. This is essentaily one of the big causes of the Greek problem, people and companies (and even government agencies) not paying their taxes. Income tax is something between 33% and 50% depending on your income.
Just wanted to make clear that just swapping the word "interrest" with "rent" is not enough for islamic banking. The whole structure of ownership and taxation has to be adapted to it.

I was not questioning the necessity for tax,relax.Its just that,a VAT of 19% seems higher to me because I am used to paying a VAT of 10.2% in India.

 

[Ahmad]

I would not paint all those who are on welfare as cheats. Sure there needs to be an overhaul of the welfare system, which stops all these frauds. The new govt is already trying to make sure nobody is worse off by working(dont know how good they will be in implementation).
I would say even with all these cheats, an welfare state is more humane, there will still be people who are relatively poor in a rich country who needs help.
I am not against VAT, was just pained to see you taking such an anti poor stand. And no I am not a commie.

dont get me wrong man, i am not anti poor, i am myself classified as poor. and i agree with the bolded part, i shouldnt paint everybody with the same brush.

 

[Zarvan]

Islamic Banking is spreading now in Euorpe to and is really a safe kind of banking

 

[Ahmad]

Islamic Banking is spreading now in Euorpe to and is really a safe kind of banking

i dont think it is spreading, there might be a few, but to say it is spreading is giving wrong information.

 

[Awesome]

AA: I am still waiting for your explanation on how Islam regulates profits.

Depending on regulatory institution, I think you're allowed to earn a set percentage of profit, banks usually charge less profit to compete in the market.

Conventional bankers seldom have an interest limit and find loopholes to inflate the interest charged from the amount that was initially agreed to.

 

[Awesome]

If most banks break rules or manipulate then it is job of regulator to regulate it. I still dont understand how they are different from a steel company or oil company which can form cartel, manipulate price etc. The current "evil bankers" is due to recent crisis and subsequent hardship by common men, nothing to do with banks respecting/breaking rules. I have never heard this term before the recent crisis.

Regulatory authorities aren't able to impose regulation upon those banks in the same manner as Islamic regulatory authorities can. Islamic jurisprudence is set. It makes it harder for banking cartels to influence new favorable legislation.

Which brings me back to my original point, that Islamic banking is not really a banking where you have to pray namaz and read the Quran before opening the accounts. Its charm lies in the stronger regulation as compared to conventional bankers. If you can regulate the banking Industry strictly - banks deserve no remorse and they will have 101 excuses why you getting screwed over is good for you and so much regulation is bad for everyone, but regulation needs to be tight.

You won't need to call it Islamic banking

 

[nForce]

Islamic Banking is spreading now in Euorpe to and is really a safe kind of banking

that is a wrong idea.

 

[nForce]

Depending on regulatory institution, I think you're allowed to earn a set percentage of profit, banks usually charge less profit to compete in the market.

Conventional bankers seldom have an interest limit and find loopholes to inflate the interest charged from the amount that was initially agreed to.

You are wrong about the bold part and right about the later part.
The ROI is decided by the Central Banking Institution,which again depends upon market liquidity.All the banks are to follow the jurisdiction.Its like MRP,you just cannot cross the preset higher limit.
This model is followed almost everywhere in the World. In case of India,the Central Banking Institution is 'Reserve Bank of India'.

 

[nForce]

Regulatory authorities aren't able to impose regulation upon those banks in the same manner as Islamic regulatory authorities can. Islamic jurisprudence is set. It makes it harder for banking cartels to influence new favorable legislation.

Which brings me back to my original point, that Islamic banking is not really a banking where you have to pray namaz and read the Quran before opening the accounts. Its charm lies in the stronger regulation as compared to conventional bankers. If you can regulate the banking Industry strictly - banks deserve no remorse and they will have 101 excuses why you getting screwed over is good for you and so much regulation is bad for everyone, but regulation needs to be tight.

You won't need to call it Islamic banking

Wrong again.Refer to my previous post.The regulatory authority is the Central Banking Institution.
There is a long record of the RBI penalizing the banks for not adhering to guide lines,seeing to the fact that the customers get proper service.Same goes with the Federal Reserve System.