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It’s definitely possible, but the sharia bank would also have a contractual obligation to share in the loss. For something like a mortgage on a home, the title
by tareqak 8y ago
It’s definitely possible, but the sharia bank would also have a contractual obligation to share in the loss. For something like a mortgage on a home, the title would belong to the sharia bank until the loan was paid off. Banking becomes extremely conservative in state of affairs.
In theory, strict rules like these should be extremely hard to game; in practice, banks and other financial institutions are a little too creative.
- logfromblammo 8y agoSeems like they need to have some inspector-scholars verify that there are no haram banking practices going on. From my perspective, a "sharia bank" is an oxymoron. Muslims should be exclusively patronizing "sharia credit unions". Professional bankers are too clever by far to be obeying the spirit of the Muslim business laws. If there were doing it correctly, they would have zero non-Muslim customers, because sharia banking is fundamentally uncompetitive with non-Muslim banking in such a way that even academic macro-economists can prove it.