Wednesday, May 20, 2009

Why Islamic banks escaped crisis: Capital FM

BY CHARITY KATAGO
Updated 20days 23 hours 6 minutes ago

NAIROBI, Kenya, Apr 28 - The current global economic downturn would never have happened if the banking sector had pegged its business on the Islamic banking, an industry player said on Tuesday.

Gulf African Bank CEO Najmul Hassan says none of the 375 banks that practice Islamic banking globally has been affected by the crisis so far.

“The reason for this is that Islamic banking does not go into the products that got these banks into this downfall. Look at Societe Generale, it lost billions in speculative transactions; Somitu Corporation lost because it was speculating on prices of copper,” Mr Hassan explained.

“These are the very things that Sharia banking disallows.”

Mr Hassan noted that Islamic banking is based on neither speculation nor interest but real growth.

“All the trading that happens in this world is not interest-based; there is real trading taking place. Some assets are purchased, you add value, and you sell them out. That is what Islamic banks do,” he said.

Mr Hassan explained that Islamic banks buy assets, add value and sell them on deferred payment and make their profit from taking part on real economic activity in a society as opposed to conventional banks which makes money on fractional lending which he described as ‘paper business’.

For more on this article, please click on the following link: Why Islamic banks escaped crisis: Capital FM

40 comments:

  1. 傻氣的人喜歡給心 雖然每次都被笑了卻得到了別人的心 ..................................................

    ReplyDelete
    Replies
    1. Thank you for the post. For more, you can take a look here, more [URL="http://islam-economy.org/"]Islamic Economics[/URL].

      http://islam-economy.org/

      Delete
  2. Replies
    1. Thank you for the post. For more, you can take a look here, more Islamic Economics.

      http://islam-economy.org/

      Delete
  3. 人生就像一顆核桃,必須敲破它,才會顯出他的內容。 ..................................................

    ReplyDelete
  4. 愛情是一種發明,需要不斷改良。只是,這種發明和其他發明不一樣,它沒有專利權,隨時會被人搶走。......................................................

    ReplyDelete
  5. 良言一句三冬暖,惡語傷人六月寒。.........................

    ReplyDelete
  6. 失去金錢的人,失去很多;失去朋友的人,失去更多;失去信心的人,失去所有。............................................................

    ReplyDelete
  7. 在莫非定律中有項笨蛋定律:「一個組織中的笨蛋,恆大於等於三分之二。」......................................................................

    ReplyDelete
  8. 卡爾.桑得柏:「除非先有夢,否則一切皆不成。」共勉!.................................................................                           

    ReplyDelete
  9. 當一個人內心能容納兩樣相互衝突的東西,這個人便開始變得有價值了。............................................................

    ReplyDelete
  10. 要拼才會贏,生活就像戰爭…什麼時候才有和平啊…>"<..................................................

    ReplyDelete
  11. 一個人的際遇在第一次總是最深刻的,有時候甚至會讓人的心變成永遠的絕緣。............................................................

    ReplyDelete
  12. 噴泉的高度,不會超過它的源頭。一個人的事業也是如此,它的成就絕不會超過自己的信念。........................................ ........................

    ReplyDelete
  13. 在莫非定律中有項笨蛋定律:「一個組織中的笨蛋,恆大於等於三分之二。」..................................................

    ReplyDelete
  14. 吾錯吾錯...我平時都好鐘意用呢d~而家學多好多~thx+0+......................................................

    ReplyDelete