Are Islamic Banks really Islamic? Dr Zakir Naik Part 2/2

[denicomputer]

I like Dr. Zakir Naik but here are somethings that I dont agree... This theory of him of Banking has similarity with Jews when they were forbiden fishing on Sat. (trying to trick Allah), so what they did they throw Fishing net into the SEE on Fri. Night and took them out on Sun. Saying: But we were not fishing on Sat.!!!

Some people they missunderstand Allahs Atributes, forgeting that He is the One who provides for u, and not the Bank. Untill the last day u will wonder was it Halal or Haram.

[tawsifp]

Is paying riba haram? For example, paying riba on a student loan for university

[hmohdkhan]

@tawsifp peace be upon you brother

any transaction involving Riba is Haram in Islam

[TheTalibilm]

Most confusing answer he has given EVER and that is not even an exaggeration.

[ikadir18]

Look why is it different? Why is it good to do a non-fixed rate or a fixed rate? Why is one better than the other? I don't understand .....

[irman3105]

Riba is not allowed because to avoid oppression. Trade must be made in cash not thru loan anyway..if conventiona lbank charge 1000 per month plus interest and islamic bank also charge same amount plus'profit' it equally opressing the borrower.. it defeat the main purpose..islamic bank is Riba thru back door...and its target of real muslim who not involve with convensional bank...

[imperial881]

ALLAH FORBID RIBA, ALLOW Trade, by buying n selling is trade...by lending n do ntg, any increase is riba...BUT interest rate n islamic profit rate is different by nature...can u say tat (riba) lend(rent) u money, u pay me 6%, (trade) i will buy the machine and rent to u at 6%.... is same? one is i rent u money, i get 6%, another one is i rent u machine...the rental will be based on 6% of the machine price...can u differentiate it?

[durian111]

why cant you understand easy thing ,when you make money out of thin air that is riba just like compounding interest and and when you make money upon agreeable rate that just it, people agree to it that all, would you like 10% fixed rate or 7% compounding rate.

[london23m]

People should stick to their respective fields! Mufti Taqi is a master in fiqh and hadith and specialises in Islamic finance. The outcome of something on face value seeming to be the same doesn't entail they are.

[redjol]

what are the conclusion from this video? i dont really understand..do we allow to make loans from islamic bak?

[ubaidpirani]

i am a naive here but i would like get clear on one thing . please help.

isnt it halal if a bank says that i lend you a machine costing 10,000 and after 6 months i will buy it on your behalf and ymy profit will be 10% on it. hasnt the bank fixed the amount what ever may be the interest rate. e.g. the interest rates goes up to 13 % but the islamic bank is still charging 10% isnt it all halal.

also clear me on saving a.c . they are giving me 6 % monthly. is it halal or not.

[hmohdkhan]

@ubaidpirani assalamo alaikum

first of all .. let be clear that interest(riba) is HARAM in Islam... so whatever transaction which involves riba is HARAM...the 6% interest you are gaining from your saving a/c without any effort is purely HARAM...

For the case of lending machine is Operating lease which is not allowed as well..

the main reason remains the same that the gauging of profit on machinery is based on the same interest(riba) profit system...

[hmohdkhan]

suppose if this profit is not gauge through this system there are more things involved that makes it impermissible...

point one Bank is not the ultimate owner of machinery.. bank just take machinery from market and add interest to it and give it to you...

point two during the whole transaction period all expense or damages to be machine will be paid by whom the lease is issued(you) i.e. bank do not share any loss happened to the machinery....

hope things points are cleared to you inshaALLAH..

[MsNunnun]

@ubaidpirani if you want to know about halal/haram than please try to understand the products of islamic banking.

[tothemax01]

So let me get this right, Islam only allows equity financing and bans debt financing?

[waqasalikhanrajput]

Before posting what Dr zakir is saying is right or wrong, you should really watch his lecture on interest free economy. That will help you understand his views better.

[rksultan]

i think he is just beating around the bush. modern day islamic banking do not follow the tenets of islam. and the profitability on money still exists in them. Which is Haram . The act or service of the bank is lending money and no profit should be charged on it not even indirectly on it product...

[rothschilds666]

dont agree with zakir on this. its not just a matter of varying the percentages, in Islam time is NOT money b/c that is the basic essence of riba.

so when you sell someone something worth 10000 and ask for 15000 to be paid back after some time then this essentially means time is money. This is riba.

[sravat1234]

its haram. this is back door riba. the worse. stay away from islamic banking and everything else. peace

[raddiamall]

I think he has self contradited twice

[saadzaheer]

No free lunches in Islam. Effort is encouraged. It could be understandable if Financing Institutions just charged a service fee for lending and borrowing but how can they share in the profit with the borrower when the money they are lending is not even theirs. All western institutions have Islamic Banking wings. If the same people keep taking everybody's money and the status quo stays, what would become of the Islamic concept of not concentrating monetary power in the hands of a few?

[samgee2007]

A rose is another name is still rose! weather you call it halal profit or ha ram interest it is still the same so what the hell this guy is talking and confusing the masses?somebody explain to me!

[balls777]

what if I sell a car.The person cant pay full and I charge 10 percent fixed interest and it is to be paid it 2 years time and it will increase to 15%percent if he extend it. Taking it from the real value of the car without adding on 10 percent and then 15%.is it ok?

Because i find it hard.we need to protect ourselve too from people who likes bad debt or exploiting any loopholes.

[Osamarulx]

@balls777 Salam,

this is very important & valid point,I too would like some clarification.

[heyyat55]

Correct me if I'm wrong, isnt riba interest rate that fluctuates in manners that guarantee the profit of banks. When you fix a certain income, like making a 10% profit from a 100,000 loan, meaning you would charge the borrower 110,000, there is risk sharing involve, since the value in money fluctuates each year.

Therefore, wouldnt Islamic bank be halal since there is risk involve for both partners. Someone shed some lights for me.

[hmohdkhan]

@heyyat55 Assalamo alaikum

yup you are right.... That's the thing! Although this rate differ everyday but profit is always a profit..

Recently I get to such bank to get info about opening an current account and they though everything and try there best to get me an Saving a/c Riba free ofcource but i find them not difference from conventional banks....

May ALLAH save us all from Evil of Riba and its outcomes..........ameen

Peace be upon you

[heyyat55]

@hmohdkhan Wa alai kum salam warah matullah. Thanks for shedding some light brother. May Allah protect us from that.

[uzairmug]

@heyyat55 yes but the risk is variable, which is accounted for by banks. whatever the inflation rate is for that year, banks exist to make profit so they charge a high enough "profit" rate that they will make at least a bit of money overall even with high inlfation, while it is the customer who 99% of the time loses money effectively. more importantly, a true Islamic economy is one without riba AND paper money, which has no intrinsic value. currency is "fake" and can thus be manipulated by govts

[norizanmohd]

@heyyat55 the problem is you do not reallly understand that money does not fluctuate in islam. Dinar and dirham do not fluctuate. Two goats cost a dinar 1500 years ago and still is now but not in paper money. Paper money is not islamic, it is a deception. Try watch the story of money and you'll know what i mean.

[haroonob]

No I disagree with him. In Islamic banking they don't know how many car or whatever they sale will sale or earn same like shop. They said 8 percent of per car or whatever they sale is fix and so 8 percent per book is also a samething in case of book shop,Bank and book both don't know

how many client they will get to sale their things and earn.

second point he said ,don't need to do business. tell me If no one will do business where we will get job

[AbuYusha]

Great Answer i m totally agree with you

Jazak-Allah for spreding and sharing correct knowleage of Islam. May Allah Rewards you for all of Yours Great afforts

[sadikhor]

dr zakir must clear first what riba is actually,from the book of ALLAH and ahadees of the prophet pbuh, coz taqi usmani and other are not the standred for us,i agree with brother islamic banking is just total fruad,they are promoting their business by useing the name of islam.

[attipitto]

I don't agree with Dr. Zakir Naik's judgement on Riba. At one point he is saying taking profit on Islamic Books equal to Alcohol is haram but on the other hand he want Islamic banks to use different rates for different commodities and use their own profit rate system.

[farhane398]

this is back-door riba

[PersonOfBook]

Ok, if Islamic banks are actually 60, 70 or 80% islamic, whey don't they explicitly state that they are not truly islamic? This is deception!

[attipitto]

One thing he is not clear about is the transaction. Murabaha and Interest based transaction have major difference of taking risk. In Islamic banking risk is associated with bank until the sale purchase agreement is signed b/w bank and the customer furthermore is customer defaults at due date Islamic bank cannot charge penalty amount from the customer. Dr. Zakir needs to reconsider his judgement on that issue.

[PersonOfBook]

Actually what the Islamic banks do is to appoint the customer as an agent and ask him to purchase an item on behalf of the bank. When the customer has purchased the item, he informs the bank, which then transfers the item to the customer on loan. Now prophet Muhammad (Peace be upon him) explicitly said that one has to possess an item before he can sell it. Now Islamic bank do possess an item, but for how much time? One day at most! This possession is phony and nominal. (cont...)

[PersonOfBook]

(cont...) Now to me, that is just deception. It is just like if i marry a woman and my intention is to spend a week or two with her and then divorce her. So basically i want to just have some pleasure with her. Now on paper, that marriage would be totally legal but my intention is wrong, so in Allah's eyes it would be wrong. Same case with Islamic banks. On paper, their transactions may be Islamic, but in Allah's eyes they must not be!

[attipitto]

You know most of the traders do the same thing they buy goods from one supplier and directly deliver those goods to their buyer, does this arrangement makes the transaction void/haram ? offcourse not. Then why Islamic banks are blamed for doing same thing in case of murabaha.

[PersonOfBook]

First of all, traders buy all things by themselves. They never ask the customer to buy the thing himself. Secondly, traders normally deliver the item on the spot and not on defer payment with exorbitant amount of mark up (or hidden interest, as I would call it). Traders know all the ins and outs of the items which they are selling. Islamic bank, just give money to the buyer to buy something and then take huge amounts from him in return. All this asset thing in between is smoke!

[PersonOfBook]

You can believe what you want to, but to me, Islamic banking is fraud. The big banks initially had some Scholars give fatwa that bank interest is halaal. When they did not succeed in convincing people, they started this Islamic Banking scam, which is just a sly way to loot money from people. It reminds me of Israelites who were forbidden to catch fish on saturdays but they instead dug canals, so fish came to them on Sunday. Technically they did not commit the sin, but God still punished them!

[attipitto]

You know that one of the main attraction for getting marriage is getting pleasure for your partner. But Islam does not allow any kind of exploitation with women. Once you get married with a women (for any reason) and excepts her rights being your spouse and give her right of Nan Nafqa (food, clother & shelter) and give your name to the child which she gives birth, its a legal and shariah accepts it in any case either your intention were just getting pleasure because you choose the right method.

[AbdullahSeymour]

@PersonOfBook

The thing is, even on paper they're not Islamic. It is impossible for a bank to be halal. Even the 'money' that is being used is not even acceptable to us.

[boutbusiness24]

@PersonOfBook good point. they should notify