Wisdom of Islamic Finance: Rethinking Our Economic System

[@AlmirColan]

In this video, we provide a simple wisdom of Islamic finance, as seen in the most basic transaction like a home loan where the idea is to structure financing around the purchase and sale of a real asset, as opposed to a loan from a conventional bank that is divorced from the real economy at the core of the transaction. This is not a detailed explanation of the transaction's ins and outs per se, but rather to illustrate the principle and the wisdom behind it. In one of the future videos, we will, insha'Allah, explore the technical details of these transactions and how they work practically.

[@airbornejr2009]

Do you really think the some Islamic banks are really sticking to the principles..?

[@AwsafSafayatKarimChowdhury]

When I try to speak about this wisdom and true reality to my father who by the way works in an insurance company he just says "Come to the reality", while he himself just doesn't want to see how this is affecting the whole society and now or later he just has to bear the price. Layman people just want to close their eyes and put it off for later and just want to earn bread for tomorrow. How should someone advise them? How do we free ourselves from this horrible world of oppression?

[@AlmirColan]

@@AwsafSafayatKarimChowdhury you have to be patient when advising, especially when other party is involved in that industry and their livelihood depends on it… best to explain and work on understanding reality fully than just going in from higher moral ground (which ticks off people)… especially with fathers - always humble yourself and go into conversation with respect, not forcing yourself or making yourself know it all

[@msaadmasood]

Please advise what is the definition of a bank in an Islamic economy? Do we have any references of banks from Quran and Sunnah? If yes! Can a bank perform business activities on other people’s money? If yes! What is the scope of its business? What are the functions of a bank in an Islamic economy? can contracts/ documentation make conventional financial products Halal?

[@mhmd7]

Nothing vague, nothing hard to understand just clear and very logical. Please share the video guys. BarakAllahu feekum brother Almir.

[@Hhh93556]

😂😂 logic in islam 😂😂😂

[@waadtreki7018]

Very comprehensive explanation of Islamic economy and consequences of financial economy. I have no background on economics, and I found your video very helpful in understanding the concepts you introduced! بارك الله فيك

[@genericuser-1]

I love brother Almir Colan he is so cool and awesome he made me learn so much about Islamic finance. May Allah bless him 🤲

[@abdurrahmanhalis]

JazakAllah brother Almir, great summary and comparison of the real vs bubble. Also an elegant unveiling of the dajjalic tricks which promises the exact opposite of its real objective.

[@farukm7627]

May Allah protect us and guide us. Ameen. Jazakall Allah

[@jmmj6665]

Barakallah Sir very informative and uplifting for trusting Allah swt and putting trust is sharia compliant finance

[@mohabatkhanmalak1161]

"The natural state of a REAL economy", I like this quote of yours. It could make a good book title on Islamic finance or lecture series. And one thing to note is that with an Islamic finance/economic system, its a win win for ALL participants/stake holders.☘

[@AlmirColan]

Very good observation 👌

[@basilfoster3107]

May Allah bless and reward you for your efforts. Those with negative comments should provide some solutions, not just complaints.

[@crimsolot2727]

Jazak Allahu Khairan brother, really great video, may Allah grant you success

[@mca9128]

Wow.. This is beautiful in ways that I didn't expect.. Barakalallahu fik for imparting your knowledge and wisdom..

[@salsabilmohamedaldubai8429]

Jazakallahu khayran for ur contect!

[@arious25]

Jazakallah khair brother

[@baay81]

thanks for sharing

[@touseefghazanfar8487]

Perfect!

[@iresineherb7]

Beautiful video

[@shariahg]

Subhanallah ❤

[@fiqhonomics]

Credit completely distorts price sensitivity on which the entire supply and demand mechanism and ultimately, "the free market" is based.

[@salihuumar3138]

Masha Allah

[@jokerzero2194]

Thank u 🌹

[@da.musaddiq]

Assalamu Alaikum. Whats the position of Tax as a mean to generate revenue. Will it have the same effects as discussed in the video.

[@omarkul5320]

would be interesting to have a dedicated video on the islamic financial principles when inflation hits the economy (like in türkiye)

[@ahmadmansouri1725]

I have a question about the point system whether in banks or other services like phone subscriptions where you collect points based on how much you spend over the years. Is using these points considered riba as you can argue cause it is a result of the product and incentive for it but in reality I think it’s about spend more money get better offers.

[@johncitizen5843]

Ok but how does MCCA have skin in the game. What sort of risks is the financier sharing?

[@burakdervisoglu]

First of all, thank you for explaining these videos very clearly and helping to improve our Islamic finance. I want to ask some question. First, does the Islamic bank use leverage? If they do, why, they lend money but they don't have enough money in the bank, how can they deal with it if all the clients withdraw their money? Secondly, Islamic bank is trading with real assets as you said but they use inflation government but this rate is not real because many governments change this rate as they want, in the end this asset maybe will be more or less how will Islamic bank show this loss or gain. Thirdly, the ordinary bank borrows money from customers, for example 3% per annum, they give money to the one who needs money, maybe more than 4%, the Islamic bank does the same thing as you know, is this 1% gain an operating expense for them or a gain?

[@dhurraramzy9558]

Do you provide any islamic finance courses?

[@AlmirColan]

Yes we have Islamic finance courses at www.muslimmoneymatters.com

[@thesolutionsuggested5152]

Plz share your final opinion about existing Islamic banks in a vedio

[@isfrhaman]

Excellent explanation brother Almir! Now I understand little from zero about Islamic Banking!

[@salsabilmohamedaldubai8429]

There used to be much more videos on here about the basics of islamic finance. Are they available somewhere? i really miss those

[@yassineruschkowski2974]

Jazak Allahu kheir my dear brother! I appreciate your work, it is essential that our Ummah gets a feeling for finance related topics. Most of us are not aware of the danger that is coming from the current style the economy is running. For me it's the source of inequality and an non-sustainable economy that destroys our environment. Following the Islamic way of finance would provide slower and more sustainable growth for everyone! Hopefully our muslim countries will understand this and engage only in halal transactions. I have one question. We have a bank in Germany that provides shariah-compliant products. A brother bought a car. They bought it for him and respectively sold it to him for a higher price but with the possibility of paying in installments. Both parties bear the risks - so far so good. But he told me that in the contract something like commodity murabaha is mentioned, which is - as far as i know - kind of procuring the money for the car today by using commodity futures at the stock market. Do you consider this as shariah compliant or do you think it is problematic? Barak Allahu feek and keep up the good work!!! Salam Alleikoum

[@zaythedon]

Unfortunately most Islamic banks also use fractional reserve banking where they create money out of thin air for their operation which is also a form of riba. It seems like they are trying to fit in the modern banking system which is inherently not Islamic at all. Islamic banking is an oxymoron.

[@nafisariaz3128]

I am a student of economics. Sir can you please give some references for this claim? Fractional reserve only require part of the amount to be kept in reserve and use the other half for deposit creation, .. what I understand the difference between conventional and Islamic economics is the way how you create deposit. If it's money from thin air , creating money from money than this is a problem, but if the deposit is used to purchase some real asset, this is where conventional and Islamic finance differs. Really appreciate an academic debate to rectify what seems flawed.

[@zaythedon]

@@nafisariaz3128 Many Islamic banks operate under regulatory frameworks that include fractional reserve requirements. This leads to a complex situation where Islamic banks may follow fractional reserve banking rules. While they avoid interest, these banks are still part of the money supply expansion process as deposits are cycled through the financial system. Example Banks: - Dubai Islamic Bank - Abu Dhabi Islamic Bank - Maybank Islamic - CIMB Islamic - Al Rajhi Bank - Bank Albilad

[@zaythedon]

@@nafisariaz3128 Many Islamic banks operate under regulatory frameworks that include fractional reserve requirements. This leads to a complex situation where Islamic banks may follow fractional reserve banking rules. While they avoid interest, these banks are still part of the money supply expansion process as deposits are cycled through the financial system. Example Banks: - Dubai Islamic Bank - Abu Dhabi Islamic Bank - Maybank Islamic - CIMB Islamic - Al Rajhi Bank - Bank Albilad

[@nailachou1174]

Fractional Reserve lending (whereby money deposited in a bank is multiplied by approx 10 fold for the purposes of lending) also is a fictitious way employed by conventional banks in creating bubbles in the financial economy which is deemed ‘legal’ and which is a form of riba as you are increasing the money supply out of thin air

[@roberthannah7983]

Bubbles - its the job of central banks to control that, and by and large they have been successful (except for Zimbabwe, Venezuela, and Turkiye (Erdogan).

[@nailachou1174]

How control the bubbles- by governments/central banks raising interest rates which is a form of riba having artificially increased the money supply through QE etc which primarily benefits the financial economy at the expense of the masses which can also be considered a form of riba

[@roberthannah7983]

@@nailachou1174 You are just accepting the assertion that interest=riba told to you by scholars. Riba was never defined in the Quran. Banks and fiat money didnt exist at the time of the prophet. Riba was about loan sharking exploiting poor debtors. Erdogan in Turkiye tried to deal with his financial problems by lowering interest rates to appease Islamists. That made inflation worse. Better to use the tools of modern economics and finance to control inflation and bubbles, rather than try and figure out what the prophet might have said about modern problems. In western countries raising interest rates is reducing inflation.

[@nailachou1174]

Riba means ‘increase’. For a clear explanation on riba refer to video ‘‘The trouble with Riba (interest) explained’. When you have a flawed global economic system based on the infinite creation of unsound money and money is not pegged to a gold standard, that can be manipulated to only benefit a few at the top at the expense of the masses, and scholars typically within Jewish and Christian tradition, are still attempting to grapple with the reasoning behind the injunctions on the prohibition of usury found in their scriptures, social chaos is inevitable.

[@imampula3154]

@@nailachou1174 To be honest If you read Zi' onist history you will find why they were kicked out by different rulers at different time for trying to indebt people with riba. Their talmud basically prohibited riba for themselves and use it to exploit others. You will be shocked to find the je' ws community giving je' ws riba free loan but not others. This guy @roberthannah7983 does not have idea about fiat currency and Banks. He claims riba was about loan sharking exploiting poor debtors. As if modern Bank is not loan sharking exploiting debtor. Prophet(pbuh and Allah(swt) have so many warning about that. Fiat currency is the root of all evil...

[@lasaraungbakri7386]

Dear Sheikh, is credit card riba? Thank you

[@cooldude3421]

Yes it is! If you don't pay on time they will start charging interest. If you pay on time you are already in the contract of paying interest in case you miss the due date. And becoming the part of that fake system.

[@selinabeukes]

I've asked the same question. Im Christian and grew up amongst the most amazing people in district 6 including Muslims. I would prefer to put my money into Islamic banking instead of white people's banks, although i love them as well 🥰🥰🥰

[@treelight1707]

Looking back at the 2008, it wouldn't happen in an Islamic financial system. The whole house of cards crumbled because of leverage.

[@darkgalaxy5548]

Never underestimate the ability of people to screw things up!

[@beniluv3250]

Charging a fee, instead of interest, is nice. But there is no uniquness in it. It is the same thing named differently. On a larger scale it translates to exactly the same too. The christian banks used to have the same problem as muslim banks and they solved it with accepting interests, as part of seperating religion and state. Renaming something doesn't mean you invented something new.

[@PakuZero]

"Uniqueness" was never the goal, and he already mentioned on the surface it seems the same, but it really isn't. Clearly visible fees, or just in the case of a home loan when if bank buys the house instead and just sells it more expensive for monthly payments no interest, thats just normal business. But the interest form (and all the hidden fees) that conventional banks do rely on deceitful tactics and have a much more unstable effect on the economy

[@AwsafSafayatKarimChowdhury]

The islamic economy is the natural state of The Economy. No one puts any kind of control mechanism. But the current economy is like a dam that could be built by anyone anywhere without any knowledge just so he can be helped with irrigation for his farm at the cost of natural disasters that will both take him and his society down eventually (remember he doesn't know science), not to mention how his dam also put many people downstream suffer who were just taking advantage of the landscape before. The later people is the natural way while the former are the artificial ones.

[@AwsafSafayatKarimChowdhury]

You might think how is it fair that the person downstream is given advantage over the one upstream who was also trying his level best but taqdir(decree of Allah) was just not the side of the person upstream, as a result he got poorer and poorer, until he got left nothing or very little . Then comes islamic law, the most beautiful and moral divine law given by Allah. Then comes Zakat to save the day. You should read more about Zakat to know what happens next, as I am not the best person to explain it.

[@beniluv3250]

Islam, as the youngest religion, is like a child putting a square shape in a square hole and is in glee with the thought of how smart he is. Banks are deceitful in countries that allow them to be. The financial market uses much more advanced tools that would encourage the smart man to learn and the stupid to shout "deception". "Sharia banking" is a tool that christian used in the middle ages and Israelites used in Sumerian time. Use it if you'd like, but the rest of the world already possesses more advanced tools.

[@beniluv3250]

@@AwsafSafayatKarimChowdhury I know zdaka, we jews have it too, that's probably where islam got the idea. it's 10% for us because we share more. Nothing natural about Islam, without oil money this religion would have disappeared by now. it have nothing but poverty and violence.

[@IrfanNahhas]

I have a question: The issue with conventional banks is that they're selling you the financial means to buy what you need for a fee/Interest/riba, Now Islamic banks makes you guarantee that you will purchase the house before they actually buy the house for you, adding just one extra step to the prior, and owning the house only temporarily because they want to resell it to you, it really feels like they're still selling you the financial mean to purchase they house, how is that Trade and not Riba?

[@femcel101]

because they're involving themselves in real life economy

[@roberthannah7983]

@@femcel101 So is a bank that loans and takes collateral. They require an appraisal, and measure your credit rating - your job, your tax returns.

[@hichamelhadri4603]

@@femcel101would an Islamic bank not kick out of your house and resell it for a profit if you can’t make the payments any more? I feel like both are the same thing only that an Islamic bank is even more expensive.

[@MohamedSalemTaglabout]

thats wrong actually, they can't make you give any guarantees or infront payments if tehy want to call their profit halal, they need to take the risk to make it halal!

[@hichamelhadri4603]

@@MohamedSalemTaglabout what do you mean take the risk? You mean they would not kick me out of my house and resell it to get their money back if I stop making payments?I don’t think that possible for them to do because every single person in the world would be lignning up to take a mortgage from an Islamic bank.

[@usaamahkriel380]

First!

[@AlmirColan]

@@usaamahkriel380 🥇🏆

[@shabudinjaver4672]

Banking is banking no matter what system you use. Other wise it is just a donation.

[@stinger4712]

Everyone who has explained Islamic finance has only ever been able to use it for simple asset transactions. For more complex transactions I haven't got any workable system. For example if I need some bridge financing to handle some contingencies for an ongoing business how would you calculate how much to pay back to the lender

[@AlmirColan]

You are free to structure your finance as you wish - use your imagination - but it cannot be a loan. You are still thinking of a loan for bridging purposes. That is not a complex transaction but very straightforward - a simple loan. But it is still a loan. You need to structure it based on the project so that profits are linked to the assets or project.

[@stinger4712]

@@AlmirColan you see you said "structure based on the project"... The difficulty is when we're talking about a going concern. We're constantly producing and constantly trading. Sometimes money won't be available to pay salaries or do some renovation of the factory. These can't be tied to specific projects or profits. How does one calculate what to pay back?

[@stinger4712]

@@AlmirColan you see you said "structure based on the project"... The difficulty is when we're talking about a going concern. We're constantly producing and constantly trading. Sometimes money won't be available to pay salaries or do some renovation of the factory. These can't be tied to specific projects or profits. How does one calculate what to pay back?

[@AlmirColan]

@@stinger4712 I used the word 'project' in a general sense in relation to bridging finance, which often relates to project financing. However, I now realise that in your case, you may have been referring to business operations. The solution for financing operational costs will depend on the specific nature of each business and its financial needs. Generally, the options include becoming an equity partner in the business or project, where the financier shares in both the risks and rewards. Alternatively, the financier can purchase assets and either sell them to you at a profit (Murabaha) or lease them to you (Ijarah), which allows you to manage cash flow more effectively during the bridging period with repayments made over time. The key point is to avoid situations where the financier simply provides cash without becoming involved in terms of ownership in the project, asset or business.

[@roberthannah7983]

@@AlmirColan I understand your objective to provide Islamicly acceptable short-term finance. But it is not practical for short term bridge financing. You just show the bank you have receivables or cash flow coming to secure the loan. Thats trade finance. And modern businesses need a line of credit to manage cash flow. Usually your bank knows you, your business, and you have a loan officer looking after you, so in that respect they do participate - they get revenue, and the loan officer gets brownie points. But you dont want them (or an outside stranger-investor) monkeying in your business and they dont want to fuss and argue about a short term profit rate - they dont have the expertise. Better as Mufti Tantawy says in his fatwa approving some forms of bank interest to remove jahala (uncertainty - profit rates) from the contract.

[@emadshah4024]

First problem my friends is that Money (fiat) as know it is directly sourced from interest based Treasury Bills so I don't know how Muslims can incorporate this type of money with Islamic system. Secondly no banks are using funds from depots to acquire any assets for themselves or for their clients, all that money is being created out of this air... So what so different!!!

[@ZziwaUmar-in1kf]

Islamic banking is the way to go...

[@mcabdulqadir6264]

2009 that system was bailed out to function And bank or institutions that made this possible And proved how wrong they were Instead government go back to the victims to pay them or bail them out

[@FreeGheryan]

One of the fallacies presented in the clip is insisting that ( paper fiat currency ) is money. Claiming that this is Islam position re this matter is something that is doubtful and disputed to say the least.

[@gpaltraining8756]

The principle is that lender and borrower needs to share the risks and rewards. In home purchase transactions the lender does not take any risks. Any fall in house value is at the borrowers cost. There are no real Islamic products on the market so stick to renting.

[@policyman4698]

you got it wrong my dear friend. in islamic finance, the islamic bank is your partner not just your lender!

[@aufaniyukzanali696]

Rethinking our economic system is to move away from fractional reserve. and removing fractional reserve is making bank only as custodians. therefore i think, rethinking our economic system is to get rid of banks or a system where banks can't loan money they don't have. if mr colan can rethink a new system unlike the fractional reserve but keep the money distribution possible, he would be truly "made it" 😀😀

[@aufaniyukzanali696]

"a better way of doing business" either with murabahah or mudharabah is (i'm afraid to say this becasue i might be wrong) like a vaccine with swine in it. it is permissible but haram is haram and we should tell people that this is a temporary solution, so pepole aware to always seek forgiveness. Allah knows best

[@naumanayub1348]

Islamic banks should buy the whole asset itself and then sell it to the buyer. All it does is financing for buyer with out taking any responsibility or loss at an exorbitant rate.

[@Iawait]

Dear sheikh, is having children riba? Because riba comes from a principal to be paid. At the same time children come from a......

[@cooldude3421]

No! When Your children become your parents is Riba! Jokes a part. The principle of paying is not actually Riba. Riba means you gave me 100 and expect 110*. Even I incurred losses or goes bankrupt. I am still liable to pay you that 110*. In this case your investment is intact but my investment has gone for the toss! Which Islam doesn't allow. Either you become partner and share the profit or loss or just simply lend me 100 without expecting profit. And if I still get in losses you give me enough time to return your money. That waiting time is given as abundant reward for you in Hereafter life. Islam is justice and doesn't allow exploration in the society. But today unfortunately we don't have that Khilafa system in place.

[@HHH78709]

You cant fix banking without fixing the money creation which is riba based. Please stop misguiding people

[@imampula3154]

Exactly you can do so little tinkering with this system. Zio' st dogs are truly from hell..

[@nafisariaz3128]

That's why it's important to question the legitimacy of conventional banks'power to create money via deposit creation

[@Magdy-su5ws]

احل الله البيع وحرم الربا The above is the pilar of any human economy Let them pass and let them work not let them finance and suck each other sweat and blood

[@fasiullah226]

An agnostic told me that the world and every country's economy run on interest and in Islam interest is haram so Islam is wrong what should be the answer for question like this because I don't know any thing about economy. If you could make a video on this or if you already have than give me a link.

[@hichamelhadri4603]

Almost everywhere around the world alcohol is legal and there are drankards on every country even in moslem countries still alcohol is forbidden in Islam because it’s an evil deed an abomination. Even if every single person on earth becomes a drunkard alcohol would still be forbidden in Islam and it would be your choice to chose: be sober or be a slave to alcohol.

[@roberthannah7983]

@@hichamelhadri4603 So to follow your reasoning, everywhere around the world then economies have grown under finance, in India, China and many countries millions have been raised out of poverty as economies have grown with debt and equity based economics and finance and that is a good thing. (Those countries' politics is a separate issue).

[@hichamelhadri4603]

@@roberthannah7983 huh? Where have I said anything about politics? Ok! First of all Muslims are not against finance and people getting out of poverty, we are against Usury which actually keeps people in poverty. Second of all, claiming that RIBA (usury) is ok because it lifted millions of people out of poverty then selling drugs should be ok in you opinion too because it has lifted millions of people out of poverty too. In reality usury, drugs, alcohol gambling although they might benefit some people they harm many many more people at the same time and we can get people out of poverty without the need of usury, drugs, alcohol and gambling revenue.

[@roberthannah7983]

@@hichamelhadri4603 You are just using a straw man argument. Nobody supports drugs and excessive gambling and alcohol, or excessive usury like loan sharking and predatory lending upon the poor. Modern interest is not riba. Its a function of capital markets and financial intermediation. Islamic finance is the same - deferred markup on murabaha is just capitalized interest. Note I included both equity and debt in my post. There is a place for both.

[@hichamelhadri4603]

@@roberthannah7983 don’t fool yourself, there’s no such thing as moderate and excessive drugs, gambling and alcohol use. Either you are a drug user a gambler an alcoholic or you are not. But, I’ll have to agree with you that modern day banking and financing did not exist in the times of our prophet the way they do today so scholar can’t agree on which one is Riba and which one is not but, our prophet told us that the lawful is clear and the forbidden is clear, in between them there are some ambiguous things that we better stay away from if we can if we have a choice. So when it comes to today interest loans, mortgages…. One would better stay away from that stuff unless you find yourself between a rock and a hard place. That’s my opinion and Allah knows best.

[@naumanayub1348]

Anything not holding it's value cannot be used as money in Islam. Paper money is haram and the root cause of all financial problems. We must use paper money's value relative to gold in Islam.

[@Eliasghaz]

I disagree with Almir. In Islamic finance, the lending of credit to customers is intended to be non-profit. The structure allows for profits to be made through other means, but not from activities directly related to loans. Simply replacing interest with another structure that results in the same outcome-higher costs for the customer-is, in my opinion, wrong and un-Islamic.

[@solkaryusuf]

what you have said is not either correct, Islamic banks are also not buying any physical assets just they make an agreement and all the deals on the paper only

[@roberthannah7983]

I agree, their name does not appear on the city ownership registry of properties. Its just a paper agreement. They just capitalize the interest as a deferred price markup and call it a murabaha.

[@hichamelhadri4603]

@@roberthannah7983 and charge you 5 times more than what a regular bank would because they know you have no other ways.

[@roberthannah7983]

@@hichamelhadri4603 Yes, Islamic finance is more expensive. Practicing Muslims are told they must deal with Islamic banks - a captive market, behaviour that Muslim academic Mahmoud el Gamal calls "sharia arbitrage". Many scholars (not Colan) say riba was about exploitation by moneylenders. So who is exploiting who?

[@naumanayub1348]

Riba means exploitation. Islamic banks are also doing the same exploiting by changing name of interest to profit.

[@MR-vx1qo]

The question was how an Islamic bank would make profit. But the speaker hardly addressed the question and devoted the talk almost entirely on the problems of the modern banking and financial system.

[@hichamelhadri4603]

Thank you, most of the comment are like : ooooh so beautiful lecture, ohhh I learned so much …. And I was like, what? He didn’t address the subject. Is everybody a zombie on the comment section?

[@solkaryusuf]

They only change the term from interest to profit and its big achievement for our beloved Shaikhs 😂

[@randomrfkov]

Financing projects without interest with huge risks stakes.

[@MohamedSalemTaglabout]

What i understood is, the islamic banks can't lend money without buying real things, which means participating in creating value for real things, that means the islamic banks can't lend consumption loans(only money) , they will make profit buy buying real things, house, car,... and then selling it to you + profit, doing that they help the economy wheel(buying and selling goods). conventianal banks lend only money, that means they get money from somewhere and they need to return it + interset(profit), they lend it to you +interest (profit), that means they make profit from nothing attached to reality, if that continue, in economy that leads to what is called bubbles(a money gets doubled when there is nothing back that money in reality, in the end something bad will happen)

[@roberthannah7983]

@@randomrfkov No sensible investor will do that.

[@ChroniclesXposed]

Islamic banking is very deceitful because the actual sale and purchase between the buyer and bank do not transpire. The transaction is only documented on paper, and the Islamic bank never truly possesses the asset it purports to sell. For genuine ownership, the Islamic bank must first acquire the asset from the seller. In practice, the buyer pays a down payment to the seller for the asset, then approaches the Islamic bank for financing. After background checks, the bank approves the financing and pays the remaining balance to the seller. The buyer then takes possession of the asset from the seller. Since the Islamic bank never owns the asset, this process is deceptive and constitutes riba, which is warned against in Islam for those equating it with regular buying and selling transactions. Furthermore, if the asset is damaged or broken, the Islamic bank does not assume the responsibility of a seller to provide a warranty or accept the return of the asset from the buyer. Instead, the Islamic bank will direct the buyer to resolve the issue with the seller directly. This serves as additional evidence that Islamic banks do not engage in buying and selling transactions; they merely facilitate financing for the buyer to acquire the asset from the seller.

[@nafisariaz3128]

How to rectify this in real time?

[@laizerwoolf]

Sharia banking needs gold as a currency, the attribute of fiat money is not permissible.

[@roberthannah7983]

No, gold represents the hoarding of wealth, It does not circulate. It sits in a vault or in your safe.

[@samiaj1020]

Before you talke on Islamic banking, you should first address whether use of paper money is Islamic or not.

[@roberthannah7983]

AAOIFI accepts it.

[@faisalfaiz4568]

Very vague and story driven. No real examples from saheeh hadis.. just fear mongering and drawing random similies

[@roberthannah7983]

Yes, rather vague and in the latter part he goes on - " (secular) finance is the root of all evil ... ". But there is a point in that there seems to be excessive financialization of the economy.

[@abka5532]

Is there a sahih hadith that could prove the authenticity of your father; he is your real geological father

[@abdulwahabkayani9607]

Banking had no religion . Money has no religion.

[@cooldude3421]

What is religion? I don't know about others but Islam means we follow the command and laws of our creator who given details of everything he created. including how to pray Him, what is right and wrong, moral and immoral, individual relationship to the creator and individual relationship with other creations. Family, society, economy, politics, judiciary, foreign relations and business..

[@gravidarum1454]

please can u comment on @gary economics theory

[@AlmirColan]

What is that theory?

[@gravidarum1454]

@@AlmirColan "gary economics" is a youtube channel 500ksubscriber , his name is Gary stevenson, he's an economist, and has a thesis on wealth inequality, he explains everything on his youtube channel. I'll be glad to see your comment on his ideas .