Islamic banking halal?!

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Aishath

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Is the concept of Islamic banking in line with Shariah and would a job there be considered halal? This particular bank has a Shariah board of members as well as the regular Board of directors comprising of three Sheikh.
 
Where is this bank? You will need to see whether they function islamically or r thez doing riba while calling it profit.
 
This is a deep question and there will be other view points here.

If we go back to the basics, commerce in Islam

 has very simple rules -

1) no interest

2) no cheating (and excessive profits)

3) protect the orphan (including weak and defenseless)

4) no gambling and other unlawful activities like alcohol

5) hoarding of essential items

6) extravagance and wastage

7) pay zakat and be charitable



When trade was undertaken historically, it was done in a personal capacity. Those laws weigh directly on the shoulders of the trader.

Enter 'business', a relatively new concept.
 Introduced officially when it became incorporated through the creation of an entity, another person, so to speak to conduct the trade. With this, the companies could exploit the laws. pushing the 'sin' to the company kind of thing. Now it's the way of life, it's almost like in the air we breathe. We are living with money, that in itself means that means we are a part of it. Banking or not. But, how could any banking system survive if they do not involve in profiting from handling of funds. Especially when it always loses value.

Perhaps you can 'istikharah' for an answer? Or just be extra charitable with your earnings? Who knows? Your intentions must be clear. It is a tough world out there. Like only non halal food available, we have to survive, but this case, we don't have to live there!:D

There is Islamic Banking here, maybe less excessive and termed differently, still is pretty much the same thing. Plenty of muslims working there. If, after working there you find that it suits you not, you can always look for alternatives?

Whether it is halal or not I see it as not halal, but we live with money, for that we need banks, and banks needs strict measures to ensure the safety of your money. So it is a whole cycle and everyone is a part of it, directly or indirectly. We are living in a non halal way, like it or not. We all work in an entity that does not obey all the laws, only the banks charge interest exclusively.

So, really, what's the deal? We are not charging interest. We earn our keep.:p
 
greenhill said:
This is a deep question and there will be other view points here.

If we go back to the basics, commerce in Islam

 has very simple rules -

1) no interest

2) no cheating (and excessive profits)

3) protect the orphan (including weak and defenseless)

4) no gambling and other unlawful activities like alcohol

5) hoarding of essential items

6) extravagance and wastage

7) pay zakat and be charitable



When trade was undertaken historically, it was done in a personal capacity. Those laws weigh directly on the shoulders of the trader.

Enter 'business', a relatively new concept.
 Introduced officially when it became incorporated through the creation of an entity, another person, so to speak to conduct the trade. With this, the companies could exploit the laws. pushing the 'sin' to the company kind of thing. Now it's the way of life, it's almost like in the air we breathe. We are living with money, that in itself means that means we are a part of it. Banking or not. But, how could any banking system survive if they do not involve in profiting from handling of funds. Especially when it always loses value.

Perhaps you can 'istikharah' for an answer? Or just be extra charitable with your earnings? Who knows? Your intentions must be clear. It is a tough world out there. Like only non halal food available, we have to survive, but this case, we don't have to live there!:D

There is Islamic Banking here, maybe less excessive and termed differently, still is pretty much the same thing. Plenty of muslims working there. If, after working there you find that it suits you not, you can always look for alternatives?

Whether it is halal or not I see it as not halal, but we live with money, for that we need banks, and banks needs strict measures to ensure the safety of your money. So it is a whole cycle and everyone is a part of it, directly or indirectly. We are living in a non halal way, like it or not. We all work in an entity that does not obey all the laws, only the banks charge interest exclusively.

So, really, what's the deal? We are not charging interest. We earn our keep.:p
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No, that is wrong. interest is haram whether you deal with it personally or through a bank. When you deposit money in a bank and the bank lends it and earns interest and then transfers a portion of it to you, you have gotten a share of the interest. And that is haram.

Banks may be required but they don't have to work with interest. There are plenty of interest-free islamic banks and they are doing just fine. Some banks have been in the islamic banking business for decades and not only are they profitable but they were in a better financial condition during the economic crisis than non-islmc ones.

An islamic bank does not charge interest or give interest on deposits. It doesn't give out loans. Instead it buys something you want and then resells it to you at a higher price, making a profit. It then gives a portion of that profit to depositors.
The benefits of such a system are great. For one thing, there is a limit to how much the bank takes from customers. In traditional banks, a borrower normally has to repay 300% of what they initially borrowed. But in islamic banks, they may have to pay 50% extra. This amount is fixed and doesn't increase with time. If it does, then it's interest.
 

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