Sharia banking goes bankrupt

[Toramana]

http://www.huffingtonpost.ca/tarek-f...054,b=facebook

The leading promoter of Sharia banking in Canada, UM Financial Inc. has gone into receivership without much fanfare. None of the nation's newspapers have bothered to report the development, despite the fact it could possibly affect hundreds of homeowners. Had it not been for a tweet by an affected Muslim homeowner looking for a lawyer, the story of UM Financial going broke would have

[ScimitarXEdge]

so this new story is based on a Tweet? lol

[IamDZJ]

What is sharia banking and why did it go bankrupt?

[ozymandias]

What is sharia banking and why did it go bankrupt?

I believe that it is the idea that Muslims cannot charge or pay interest. While there is some dispute over this issue, some banks and institutions have created loans that conform with these restrictions. My guess as to why it went bankrupt would be that it was targeted at a small market (only Muslims that thought that interest was entirely forbidden) and was an overly complicated process. Non-interest loans are a complicated issue (compared to interest baring loans), and are risky, financially speaking -- and would likely have higher overhead to the financial process.

[IamDZJ]

peasants shouldn't be charge interest. The rest of you need to start thinking practically. You don't have a problem raising your children in a country where half of the peoe walk half naked in the streets but you don't want to pay interest because it's haram. Whatever..
And tormana there is nothing to smirk about.

[Afghanistan2010]

Sharia Finance to be better called , it is something that is most hated by the Americans and European governments and it is along the most serious threats to the United (looser) States of America registered on their top hit list its Sheikh Usman Taqi (hz) the writer and the first scholar who wrote the basics for Islamic Banking from Quran and Sunnah.It was interduced in many countries like in UK, USA,Germany , France,Indonesia,Malaysia and and.

Its a away of Investment/Banking which has only postive results for the costmers there are no fears that these Banks will play with their money to rise their loans or wins.There money is free from tax and interest.

A good way of Banking which is according to the laws of Allah.

[ozymandias]

peasants shouldn't be charge interest. The rest of you need to start thinking practically. You don't have a problem raising your children in a country where half of the peoe walk half naked in the streets but you don't want to pay interest because it's haram. Whatever..
And tormana there is nothing to smirk about.

I looked into this a little more -- some Muslims think that it is only excessive interest that is not allowed, while some think that it is *any*. Sharia banking does away with *any* interest, and replaces it with flat repayment schemes, and extra fees.

[Afghanistan2010]

Read the post above.

[ozymandias]

Sharia Finance to be better called , it is something that is most hated by the Americans and European governments and it is along the most serious threats to the United (looser) States of America registered on their top hit list its Sheikh Usman Taqi (hz) the writer and the first scholar who wrote the basics for Islamic Banking from Quran and Sunnah.It was interduced in many countries like in UK, USA,Germany , France,Indonesia,Malaysia and and.

Its a away of Investment/Banking which has only postive results for the costmers there are no fears that these Banks will play with their money to rise their loans or wins.There money is free from tax and interest.

A good way of Banking which is according to the laws of Allah.

Not quite true. The US allows for Sharia banking, there is no risk to having your interest rate changing, unless you agree to a loan where the interest rate is not fixed, and the money would be taxed.

That said, interest is actually, economically speaking, a very good thing, and the customers benefit from taking loans out at interest, and making loans at interest (which is what a savings account is).

Sharia banking is not a threat to anything, it's simply another option that some people will choose to take -- and it is clearly not popular, or optimal currently, as the leading Sharia lender just went out of business.

[Afghanistan2010]

You dont know but Usman Taqi (hz) is on the hit list of the US DoD.
Its the first serious threat to the people playing card games on the Wall Street.

[ozymandias]

You dont know but Usman Taqi (hz) is on the hit list of the US DoD.
Its the first serious threat to the people playing card games on the Wall Street.

In order to be a threat, it must first be economically feasible. Since these institutions are struggling, you are making one heck of a claim, with no evidence. Par for the course, for you, I guess.

[IamDZJ]

I doubt that anyone from 21th century will see the gates of heaven. Chances of landing in hell for hypocrisy theft and murder is alot more than just greater than landing there for paying interest on a house mortgage.*
If you are not all of that and still wish not to end up in hell for paying interest then kindly pack up and live somewhere where your children's lives are not affected by your silly attempt at making yourself seem alot more holier than you are.
This is how the poor stays poor and the poor poor. Sharia my foot.

[Afghanistan2010]

http://islamicamagazine.com/?p=764

http://ifresource.com/2008/01/05/int...i-taqi-usmani/

Islamic Banking System Resists Financial Crisis - YouTube

[Naveed Safi]

have a look at this DZJ and all

Vatican Paper Supports Islamic Finance. France Wants Its Share of Sharia Banking | The Brussels Journal

[Naveed Safi]

Vatican Says Islamic Finance May Help Western Banks in Crisis - Bloomberg

Vatican support for Islamic banking

and this one too