Why?Capitalism and the West's monopoly on the payment system must be destroyed
IMF to Rich Countries: You can afford to live with high debt 'forever'
- Thread starter Poitier
- Start date
I'm glad you've found a fellow cult memberGood to see a fellow muslim!
But it's allahu akbar with a u at the end.
Islam uses a massive loophole to make profit. Don't be fukking stupid.
infidelI'm glad you've found a fellow cult member
ill
Superstar
Please explain
So The West can't sanction and control the economies of those they don't like.
I think you are mistaken. The alternate payment system is happening and The West will have to deal with it or too bad. Meanwhile, Western loyalist like you will be stuck in stagnant economies parading austerity.
Islamic banking likes to buy the asset then re-sell it at a higher rate instead of charging interest.
Islamic Finance
By Simon Harvey | Updated Feb 12, 2015 4:56 PM EST
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The Koran forbids charging interest or paying it. Yet even strictly observant Muslims can participate in modern-day commerce. They use alternative arrangements designed to comply with sharia, or Islamic law. These financial instruments, in which the buyer and the seller typically share risk as well as profit, are some of the fastest-growing on the market. Even companies and governments outside the Muslim world are using them. And why not? The world’s Muslim population is growing rapidly and in many places growing wealthier, creating new customers for sharia-compliant bonds, mortgages and insurance. Fans of these arrangements think they can compete with conventional ones even for non-Muslim customers. How big Islamic finance can become, however, is a matter of debate.
The Situation
Assets of Islamic banks almost doubled to $1.3 trillion in mid-2013 from $820 billion in 2008. Sales of Islamic bonds, called sukuk, grew to $120 billion in 2013 from about $6.6 billion in 2004. The U.K., which hopes to become a global center of Islamic finance, in mid-2014 became the first non-Muslim country to raise funds by selling sukuk; Luxembourg, South Africa and Hong Kong followed. Companies such as General Electric Capital and Goldman Sachs also have sold sukuk. Rather than lend money to a conventional borrower in exchange for interest, sukuk holders own a share of the asset their investment funds and receive income from any profit it generates. Investors in Muslim-dominated countries in the Middle East and Asia aren’t the only ones buying sukuk: There’s strong demand in Europe and the U.S., too. Islamic insurance, which operates on a cooperative business model, is also expanding. Ernst & Young projects it will maintain double-digit growth, with member contributions totaling $20 billion by 2017.
SOURCES: INSTITUTE OF ISLAMIC BANKING AND INSURANCE, ISLAMIC-FINANCE.COM
The Background
In Islamic texts, charging interest is regarded as exploitation of a person in need. A rudimentary form of Islamic finance existed from the time of the Prophet Muhammad, in the seventh century, but the modern version took root only during the colonial era. The first sharia-compliant bank was established in Egypt in 1963. Iran, where all banks must be sharia-compliant, is the largest market for Islamic banking. Saudi Arabia, Malaysia, United Arab Emirates, Kuwait, Qatar, Turkey and Indonesia hold about 91 percent of the remaining Islamic banking assets. The Islamic Bank of Britain, established in 2004, was the first such institution outside the Muslim world.
The Argument
Even with its explosive growth, Islamic finance makes up just 1 percentor so of global financial assets. Champions of the approach argue that in the aftermath of the 2008 financial crisis, it can appeal beyond devout Muslims to other customers worried about the stability of the financial system or those interested in ethical banking practices. They say sharia-based financing promotes stability because it prohibits speculation and the practice of overloading companies with debt. Money is channeled toward investments in enterprises that produce actual goods and services, rather than buying and selling on financial markets. Skeptics note that ethical banking enthusiasts are usually interested in an institution’s environmental policies and engagement with the local community, not whether it forbids profiting from alcohol, tobacco, gambling and pornography, as sharia requires. Some customers may be turned off by the dearth of women in management at most Islamic financial companies. Others may worry about institutions being exploited to funnel money to Islamic terrorists, a concern raised in a U.S. State Department memo about Islamic finance in the U.K. After Christian groups in South Korea raised the same issue, the government put off making tax changes to accommodate Islamic finance. The industry is also challenged by high costs due to the complexity of the instruments and the fees paid to scholars to certify sharia compliance. And many products, such as hedging instruments and short-term government securities, are in short supply. Progress in establishing common standards for sharia-compliance has been slow, creating the risk that instruments could be declared unacceptable, as several sukuk have been after issuance.
THE REFERENCE SHELF
- The Islamic Financial Services Industry’s 2014 Stability Report evaluatesthe industry’s health.
- An IMF working paper examines whether Islamic banks are more resilient than conventional ones.http://www.academia.edu/8509616/The_Performance_of_Islamic_Banks_and_Macroeconomic_Conditions
- The Institute of Islamic Banking and Insurance offers explanations of industry concepts.
- The Council on Foreign Relations explains the rise of Islamic finance.
- Bloomberg News curates developments in the industry.
To contact the writer of this QuickTake:
Simon Harvey in Kuala Lumpur at sharvey6@bloomberg.net
To contact the editor responsible for this QuickTake:
Lisa Beyer at lbeyer3@bloomberg.net
Alternative payment? Such as?
Alternate credit, alternate lenders, alternate currency....its all in motion so deal with it
Alternative does not mean "better"Alternate credit, alternate lenders, alternate currency....its all in motion so deal with it
For those of us at the bottom of Western hegemony, it does.
No.
It doesn't
And your anger doesn't benefit you.
Learn the rules of the game.
I'm still waiting for you to leave.
Why leave when Blacks and Browns are flooding the West and projected to become the majority
