Imran Hosein's view on Islamic banks

[77moessa]

islamic banks say its not interest but profit. but whats the difference. both are to make money. so they are in fact covering riba name with profit.

[imperial881]

second, with wat money Islamic bank use to buy the things n profit for tat...

1. under mudharabah concept, 80% 20% people who save money r partnership in the bank...Bank manage money on their behalf...n they help people to do investment.which refer to buy things n profit from tat...

2.in islamic finance itself, they hv their own rates of profit( what is the difference between rates of profit n interest rates) one is trade, one is riba...

ofcos they hv other difference, which u can ask, if u wan



[imperial881]

first of all, the islamic bank buy the things that the purchaser wan to buy, then resell to them....okie...Allah forbid riba, allow trades. with this, it become trade, buyer n seller....riba is compounding,uncertainty,intere­st rate fluctate,but if u buy n sell back..both buyer n seller knw wat is their end...buyer knw how much to pay, seller knw how much they will receive....

[RustLionofDesert]

SUBHAN'ALLAH!

[chekdamize7]

SubhanAllah!

[babudiamond]

I agree, Norm of business transaction is a cash transaction. But we need to allow ppl to pay in deferred basis if customer do not have money.

If you are going to your nearest shop in your house to buy rice for example, Shop keeper may charge u higher than cash price. There is no problem in Sharia to charge a higher price on credit sale.

But Sheik raise the valid question, Norms of islamic business in cash basis and credit sale is a exception but Islamic banks have made this exception to norm.

[NouraTheMuslimah]

EXCELLENT!!

[lushhmushh]

whats the name of this shiek.. pls help, i would like to hear from him.. may Allah subahana wa taala bless him for his work

[IQ233]

Sheikh Imran Hosein

[a495995]

Good devising!

[IQ233]

Another video to watch is "Are Islamic Banks really Islamic?" by Zakir Naik.

[hamidmushtaq]

Truly agree with you EsotericDesi! Islamic banking is capitalism in disguise! Just a mere twist of documents do not make a transaction interest free. Islamic banks are actually profiting from goods which they do not own. For example when someone buys a car from them, they buy on a condition that customer will purchase it, so the actually they do not own that thing and this is prohibited in islam, that is selling something which you do not own. And there are many other tricks as well!

[hamidmushtaq]

The problem is all finance and economics students are taught assuming that they will work in a capitalist environment which is unislamic. So Islamic bankers have this capitalist mentality. First of all fiat money is haraam, Muslims should have their own currency based on gold and silver and banks should be only to store and transfer money and they should charge fees for it. As for lending, it should be done by a non-profit institution, for example a Government one, so public money is lent!

[hamidmushtaq]

I disagree with you. Islamic banks hide interest under legal tricks. For example, in Murabaha transaction, they ask the customer to his own agent to buy the stuff and then the bank also asks him to sign an agreement that he will pay for the losses, in case he denies purchasing the item later on. The bank is actually making profit from a thing which it does not own, and this is prohibited in Islam. Many scholars have declared such transaction haraam!

[sm222]

Going into debt is stupid. Debt inflates prices above market rates. With the Internet and modern communications, the value of a banker is almost zero. An economic system which makes it easy to create limited partnerhips will spread the risks associated with a given investment to multiple investors. This is a healthier and more stable economic structure than our current out-dated world banking system. The spirit of Islamic law is truly utilitarian... it is focused on producing good results.

[hamidmushtaq]

Very true sm222. I actually hate it when people say that banks are good in that they allow them to buy houses, cars etc... What they don't understand is that banks actually are responsible for inflating prices of cars, houses so it becomes almost impossible to buy on cash. Some times ago, even a middle class man could afford a house on cash, but no more. u r right, a banker is a worthless being, infact destructive being!

[hamidmushtaq]

In Pakistan when car financing became very popular, at one point buying car on credit was cheaper than buying on cash. And buying on cash required you to wait for some months. This is the effect of banking, and people call Islamic banking islamic. bullshit!

[zeenasworld]

@sm222 i agree

[MatrixOfDynamism]

when it is the same everywhere i.e the whole economic system is owned by the Riba imposing people then, what is expected of the people to do when they want to buy a house or a car and find it nearly impossible to do it any other way?

[TruthSeekingPerson1]

@MatrixOfDynamism if it is clear that interest based economy if not correct, why do u need 2 buy a home. We can just work n pay rent....n if u av saved enuf buy 1 room apt instead of dreaming to buy a mansion....

eg: if ur dream car is ferrari and u earn 2k per mth, it doesnt make sense 2 buy 1 mil $ ferrari on credit card i guess. if we do then thr is something wrong with us....same applies for home too....