Islamic Banking

[afzalaung]

Salaaamz,
so i was thinking of continuing my studies and honouring in islamic Banking and financing.
from all i know, its one of the more lucrative field.
But recently i;ve been getting comments against i-Banking...
most claim its just Interest-based banking..with arabic terms.

Any thoughts?

[Good_ol_JR]

I'm trying to get into the exact same things, hook me up if youhave contacts. And no I-Banking is not the same regardless of what critics say. Proof: The losses Islamic Banks suffered were very meager compared to their interest, future/short selling/hedge fund based counterparts

[the_wrong_guy]

It's a very interesting, challenging field. It's still in its initial stages, and a lot of issues require research, inquiry and debate. Reconstructing the economic scene in early Muslim history, and understanding its basic assumptions, values, principles and theories by going back to the works of Tabari, Dhahabi, Ibn Kathir and other historians and reading between the lines is one of the more interesting areas of focus in Islamic Economics, Finance and Banking.

The current proposals, and the general functioning of various Islamic banks (and Sharia-compliant schemes and investments offered by regular banks) demand reinvestigation, especially in light of a Maqasid-based approach.

Ustadh Dr. Umar Chapra, Ustadhna Dr. Nejatullah Siddiqi, Maulana Taqi Usmani and Shaykh Ali al-Qurrahdaghi are among those who laid the framework for Islamic banking in modern times, and also raised concerns about the Islamic-ness of Islamic banking as practiced by most Islamic banks today.

For an Usool al-Fiqh + Aql-based criticism of various practices in Islamic banking and finance, refer to Islamic Banking and Interest: A Study of the Prohibition of Riba and Its Contemporary Interpretation by Abdullah Saeed, and Islamic Finance: Law, Economics, and Practice by Mahmoud Amin El-Gamal.

For a Western critique of Islamic Economics, read Islam and Mammon: The Economic Predicaments of Islamism by Timur Kuran.

Basic reading: An Introduction to Islamic Finance by Maulana Taqi Usmani, Islam and the Economic Challenge by Dr. Umer Chapra, and Dialogue in Islamic Economics by Dr. Nejatullah Siddiqi.

[IbnMardhiyah]

afzalaung said

Salaaamz,
so i was thinking of continuing my studies and honouring in islamic Banking and financing.
from all i know, its one of the more lucrative field.

Its definitely not more lucrative, if you are strictly talking about those financial instruments which are used solely in Islamic banking. Debt-based trades are much more lucrative, but they're haraam. As for financial vehicles common to both Islamic and non-islamic banking, the most lucrative is probably asset management and brokerages, if you're good at it. Asset mgmt. can get you fees in excess of 40% if you go above specific targets.

But recently i;ve been getting comments against i-Banking...
most claim its just Interest-based banking..with arabic terms.

There is a real need for people with strong ethics to rebuild confidence in Islamic banking. There are many professionals who simply dress up interest-based transactions in order to make it appeal to Muslim masses, while others engage in harmam combinations of what are normally halaal contracts.

Dr. Taqi Usmani : "Islamic financial institutions, in an attempt to compete in "the conventional, interest-based marketplace," have churned out products that give lip-service to Islam while using "ploys that sound minds reject and bring laughter to enemies."