Quote:
Originally Posted by Rifat
I myself have doubt on the concept of "Islamic Banking" I asked some scholars and about all of them said for now, it is the best system we got...
for example: to avoid Ribaa/interest: Islamic Banking system is that an "Islamic Bank" buys the house and you agree to pay the bank in a contract...I personally disagree with this because either way you end up paying more than what the house is originally worth.
Scholars explained to me that the difference is: you agree with the bank on a fixed contract...I personally see no difference..anybody care to help? (I know we have discussed this here before...but a refresher wouldn't hurt  )
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This house business is halal.
Although you pay more for the house, you do not pay interest, because the bank has first bought the house and the house became their property before they sell it to you.
Whenever I have approached anyone working in the Islamic Bank to talk about Islamic Banking, they present me the example of their selling cars/house in a halaal way. However, a massive institution like a bank can't earn much from house/car business. They off course have many other big businesses. Even if I agree that all the other business they do are legal as per the Islamic Shariah, how come they never incur any loss in any of those businesses? Whoever invests money through the Islamic bank, always gets profit (they do not say interest
), while the core principle of the sharia when it comes to investing says that the investor should be open to both loss and profit?
Even in the Islamic bank, you can have a fixed deposit account with the percentage of profit fixed. How do they justify this?
In my view, (who has very little knowledge on economics), true Islamic banking is impossible in our time because trust between people has declined significantly. If an Islamic bank today lend a business man 1 milion taka and says that they are open to loss and profit, the businessman for sure will show the bank that he couldn't make any profit from the business. They may find one trustworthy businessman out of a million, but that one businessman will not keep the Islamic bank running. So, my conclusion is, I do not trust the Islamic bank because their dealing procedure seems doubtful to me and hence to remain on the safe side, I do not take their profit.