3 ms·
https://en.wikipedia.org/wiki/Islamic_banking_and_finance https://en.wikipedia.org/wiki/Islamic_banking_and_finance "Sharia prohibits acceptance of specific int
by Kinnard 10y ago
https://en.wikipedia.org/wiki/Islamic_banking_and_finance https://en.wikipedia.org/wiki/Islamic_banking_and_finance
"Sharia prohibits acceptance of specific interest or fees for loans of money (known as riba, or usury), whether the payment is fixed or floating . . . As of 2014, sharia compliant financial institutions represented approximately 1% of total world assets. By 2009, there were over 300 banks and 250 mutual funds around the world complying with Islamic principles and as of 2014 total assets of around $2 trillion were sharia-compliant. According to Ernst & Young, although Islamic Banking still makes up only a fraction of the banking assets of Muslims, it has been growing faster than banking assets as a whole, growing at an annual rate of 17.6% between 2009 and 2013, and is projected to grow by an average of 19.7% a year to 2018."
Just one example.
- dmoy 10y agoIslamic banking isn't equivalent to interest free loans, it's a separate system. Islamic banks still profit from loans.
- nimos 10y agohttp://muslimmatters.org/2010/07/15/the-failure-of-islamic-finance/ http://muslimmatters.org/2010/07/15/the-failure-of-islamic-f... Islamic banks do not provide interest free money. They just use a variety of different legal structures so that there isn't anything explicitly called interest in the agreements. Usually involving the bank buying the asset and selling back to the borrower at an inflated price.
- sremani 10y agoThey seem to replace interest with fees or commissions.