3 ms·
I don't see how this is so different than our usual Western banking system, except that it's less regulated and more customer-friendly.
by marshray 13y ago
I don't see how this is so different than our usual Western banking system, except that it's less regulated and more customer-friendly.
- nhaehnle 13y agoI have no idea why you were down-voted. I think you're right. For example: The Wikipedia article claims that the Hawala system is unusual in that no promissory notes are exchanged. However, directly after that, the article explains how extensive notes are kept on how much the brokers owe each other, and that there are some forms of final settlement between brokers. These notes on mutual indebtedness appear to play an identical role to promissory notes. This is really no different than the final settlement between banks in the Western system, except that - as you wrote - it appears to be less regulated.