Islamic Bank

Islamic Bank questions and answers

Find more information on the Islamic Religion @ The Adherents Religion Website.

Q: whats are the strengths and weaknesses of Islamic Bank?
swot analysis of Islamic Bank. The opportunities and threats of Islamic Banking system. This information is needed to me for making my project work/assignment.

A: Islamic banking refers to a system of banking or banking activity which is consistent with Islamic law (Sharia) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called riba in Islamic discourse. Generally, Islamic law also prohibits trading in financial risk (which is seen as a form of gambling). In addition, Islamic law prohibits investing in businesses that are considered haram (such as businesses that sell alcohol or pork, or businesses that produce un-Islamic media). In the late 20th century, a number of Islamic banks were created, to cater to this particular banking market.

Q: how can we open an islamic bank india?
I know guys its not an islamic site but dont you think we need to have an islamic bank in India , everytime when we need loans we cant go to the banks because they work on interset and that is haram .Can we not join together and help ourselves and open a bank .

A: You should learn to pay interest.

Q: What are the roles of the Governors' of the Islamic Development Bank?
Each member country of the Islamic Development Bank has its Finance Minister of that country as a Governor of the Bank. I want to know what the roles of these Governors are in the Bank

A: Collectively, they act as a steering commity to guide the IDB in their financial goals and how they are going to achieve these goals. They discuss and come up with plans to advance the bank and to allow for as much sustainable development and profitability as possible to continue to thrive. Much like a Board meeting for a large private bank.

Q: which islamic bank would you advise in the UAE?
New to dubai, i'd like to open a bank account in one of these banks. What is your feedback or what you heard of about: Dubai islamic bank Emirates Islamic bak Noor Islamic bank in terms of customer service, cost, product quality, etc thanks for your help

A: i had accounts in both Abu Dhabi and Dubai Islamic banks ... i felt more satisfied with Dubai... my friend has account with Abu Dhabi islamic bank and she said it's complicated when doing online transactions which is - according to me - something very important as I can pay bills and check my account via internet ... sorry i don't know about the other banks

Q: I need to start a zero balance account in Dubai Islamic Bank What is the procedure Is any monthly charges ?
This will be account that any time i can withdraw my cash for my expences

A: Why did you ask this question twice, just for me to get 2 points? Good Luck!

Q: Is is true that there is establishment business in dakar senegal whose business is Islamic Bank of Senegal?
The name of the bank manager Mr. Yazim Ibrahim, and the acccounting department Miss Amanda Ashfaq and Mrs. Aisha Mohammad.

A: Well the answer to your question is going to be two fold, first yes there is a Senegal Faisal Islamic Bank of Senegal, Dakar. It's rather easy to find on line, but there are no links or phone numbers, just broken links, which isn't a good sign. Second, the obvious question is, if this is about an e-mail you received from some stranger telling you a story about lots of money that could be yours, it is completely untrue. Also the name Aisha Mohammad appears to be a reference to one of Muhammeds wives more then a real name. If there is a way for money to be made in Senegal, believe me they will make it and they won't bother to send you an e-mail about it.

Q: Bank loan from Abu Dhabi Islamic bank?
I want to get married, so will the bank give me a loan if I ask them? I have an income of above 25000 aed so how much would they offer me for a loan?

A: Islamic banks do not charge APR , rather there will be some kind of fixed fees for the loan, so you will know exactly how much it will be. (varies from 5 to 25% depending on the bank). But this is fixed so it will not increase per year except if you default there are late charges. You need to ask the specific bank what their procedure & fees are.

Q: in a country where we dont have any islamic bank, are muslims allowed to work and invest in conventional bank?
we have muslim graduates in the field. But there is alot of controversy over the legitimacy of taking a banking job because of the interest issue.

A: Simple: No Gambling no investments ;)

Q: I HAVE TAKEN A NEW CAR FROM ISLAMIC BANKING, BUT I HAVE CHANGED MY MIND AND WANT TO RETURN THE CAR TO THE BANK?
its a new car brought today and want to return it to bank today, want the bank to waive off the profit rate as per the islamic rules, i want to know whether bank will ask for charges for the same and how much loss i will incur due to this

A: How would anyone here know this answer? You need to talk to the bank and ask your question.

Q: Anyone agree with me that Malaysian Islamic banking NOT Islamic at all?
1. THE CONCEPT (wrong concept): Mr Ali need to borrow money ($) and go to a Bank for the loan. Since the Riba/Interest is not allowed in Islam, the banker then arrange a BUY & SELL transaction. And through this transaction Mr Ali managed to get the loan. 2. THE ARGUMENT: IF one have the INTENTION to borrow money, the parties MUST signed a CONTRACT as intended by the borrower. If the 'niat'/intention differ from the 'akad' /contract, it is unethical, unsincere, thus NOT ISLAMIC at all. 3. THE SOLUTION There's a way, Islamic way. Shall I work on a piece of paper for this?

A: 1) there cannot be 2 transactions in a single transaction, and most of scholars hold the opinion that selling an item one does not own is haram, however some scholars approve that. That's called "bai' al-'ina" or just 'ina. 2) no problem in signing a contract, it's better that way. The problem may lie inside the contract. 3) the problem occurs when it comes to loans, wadiah savings are fine. The only loan which I regard as halal is so called "qard hassan" where the debtor may pay an extra amount if he wishes so but is not obliged to do that. That doesn't bring much profits to the banks so the banks will be reluctant to give such loans, or shall I say it brings them no profit at all. 4) "Islamic banking" in Malaysia contains interest but they call it with different names and it's hidden behind some mischievous policies. 5) bank is allowed to charge you service fees and give you a gift for entrusting your savings to them. Normally Islamic banks make money through investment and they might reward their customers with a share of their profits. That's cool, nothing haram here. See this: http://www.american.com/archive/2007/march-april-magazine-contents/islamic-banking-is-it-really-kosher ----------------------------------- Farina, time for you to learn something about Islam, and son't just bash posts without reading them carefully. Wadiah savings accounts are fine, the problem is with loans. You're a chat bot with no knowledge on Islam. Trustee is absolutely right, so stop speaking what you don't know. Wadiah savings system is same in all banks in Malaysia, CIMB, Bank Rakyat, Maybank, RHB, Bank Islam, etc.

Q: What is your opinion (if any) about the Islamic Bank of Britain?
Muslims have their own "fully-regulated and Sharia-compliant bank." Do you think this is indicative of the power and influence they now have in this nominally-Christian land? Should we be afraid? Serious comments.

A: Brilliant question :) I think it's very worrying. I remember some time back when tiny news stories began appearing about Muslims in the UK being allowed special mortgages that comply with sharia law. I felt very uneasy then - and I'm more uneasy now. I would react the same way if any other faith had their own banking system, let me add. Britain is a Christian country. It is one of the most open and 'tolerant' countries in the world and it is being abused. If Muslims want so badly to live by sharia law - and that is of course their right - then there are plenty of countries where sharia law predominates. Britain is not one of them. At least, not yet...... There are also areas in Britain that have been described as 'Muslim only' - and where sharia law is being used to settle disputes. In addition, the Muslim Council of Great Britain told Tony Blair, back in the aftermath of the London suicide bombings, that they wanted to see MORE sharia law introduced to the UK! Britain is appeasing Islam. It won't work. Appeasement never does. If you haven't read it, I think you might enjoy the book LONDONISTAN, by British journalist Melanie Philips. It is an excellent overview of the way in which Britain allowed London to become a recruiting ground for several radical Islamic groups, such as Hizbut Tahrir. TO 'WHOSE' - well said. I agree with you 100% Sounds like the UK and Canada are more alike than I realised....

Q: Can anyone explain Islamic banking to me?
I know that Sharia forbids interest. However, I am unclear as to how an Islamic bank actually makes money. Thanks!

A: Portion of agood article,Worth if you read full. Islamic banks have also been resorting to purchase and resale of properties on a deferred payment basis, which is termed bai' muajjal. It is considered lawful in fiqh (jurisprudence) to charge a higher price for a good if payments are to be made at a later date. According to fiqh, this does not amount to charging interest, since it is not a lending transaction but a trading one. Leasing or ijara is also frequently practiced by Islamic banks. Under this mode, the banks would buy the equipment or machinery and lease it out to their clients who may opt to buy the items eventually, in which case the monthly payments will consist of two components, i.e., rental for the use of the equipment and installment towards the purchase price. Reference must also be made to pre-paid purchase of goods, which is termed bai'salam, as a means used by Islamic banks to finance production. Here the price is paid at the time of the contract but the delivery would take place at a future date. This mode enables an entrepreneur to sell his output to the bank at a price determined in advance. Islamic banks, in keeping with modern times, have extended this facility to manufactures as well. It is clear from the above sketch that Islamic banking goes beyond the pure financing activities of conventional banks. Islamic banks engage in equity financing and trade financing. By its very nature, Islamic banking is a risky business compared with conventional banking, for risk-sharing forms the very basis of all Islamic financial transactions. To minimize risks, however, Islamic banks have taken pains to distribute the eggs over many baskets and have established reserve funds out of past profits which they can fall back on in the event of any major loss.

Q: Is Islamic bank really islamic...your perception?
plz give your views at: http://islamicbankperception.blog.com/ PERCEPTION ABOUT ISLAMIC BANKS This survey is to assess customer perceptions and satisfaction level about interest free bank, its service and the products. I would be grateful if you could take out some of your time to answer this questions. a) Do you feel you understand the difference between Islamic and conventional banks? Is Islamic bank really Islamic... b) Do you feel Islamic products are more costly compared to interest bearing products? c) Do you think Islamic banking product should be used even if they are more costly? d) Do you think Bank promote Islamic values ( honesty, commitment) and reflects on mission which is social welfare and ethical, religious goals? e) Do you think that Islamic banks value their customers needs better than their conventional competitors? f) Do you think that the objectives of Islamic banks is to only increase profit? g) Do you think that Islamic bank use sufficient Qur'an and Hadith sources to market their products? h) Do you think Shariah advisory board members are competent to give authentic advice to bank? i) Do you think that Shari'ah banks copy conventional products & use Arabic names to market their products? j) What do you prefer new purely Islamic bank or Conventional Islamic window? k) Are you satisfied with your existing bank ( ATM, Branch customer service,internet banking,and phone banking) the service you use the most? l) What are the main challenges for Islamic banks to survive in such competitive market? Thanks for the honest opinion

A: (NO); the Islamic Bank Is (NOT) "Really" Islamic !

Q: Best Islamic Bank - Dubai?
Hello Everybody, I am moving to Dubai in a few Days. Would like to hear about your experience in Islamic Banks there as I want to open a bank account , Credit Card and maybe car load as soon as possible. Regards

A: I can recommend Dubai Islamic Bank (DIB) http://www.alislami.ae/en/index.htm For requirements to open a bank account in the UAE please visit the link giving below: http://www.gulfnews.com/uaessentials/residentsguide/getting_started/10077961.html Take care.

Q: Noor Islamic Bank Dubai?
Hello Everybody, Any Good/Bad experience with Noor Islamic Bank - Dubai. I want to open an account and obtain a Credit Card from Them. Best Regards

A: I do not have personal experience, but I heard that they are good. But if you are looking at an Islamic Bank, Dubai Islamic Bank has a better reputation.