http://arabnews.com/economy/article615047.ece
This article gives an overview of how Islamic banks have been the least affected banks from the financial crisis. It also urges Muslim countries to decrease their dependence on World Bank and the IMF and rather depend on their own resources to build their economies like China, Brazil, South Africa and Vietnam. The article also says that in the time of crisis when people are thinking about switching to an alternative system, Islamic banking is something which they can consider. If not completely, Islamic banking can work in conjunction to the present system.
This article gives an overview of how Islamic banks have been the least affected banks from the financial crisis. It also urges Muslim countries to decrease their dependence on World Bank and the IMF and rather depend on their own resources to build their economies like China, Brazil, South Africa and Vietnam. The article also says that in the time of crisis when people are thinking about switching to an alternative system, Islamic banking is something which they can consider. If not completely, Islamic banking can work in conjunction to the present system.
7 comments:
According what we learned recently, the economic system of Islam is a special one that combines both characters of capitalism and socialism. Put it differently, it is hard to say what kind of economic system it employs. This special combination might be the reason that leaves the country the least affected economy of the recent financial economy. It is said that this system might be another approach to make economic growth. On the other hand, as pointed in the article, Islam might want to pay more attention on its existing problems in order to make its economic growth sustainable.
I haven't seen an Islamic bank yet but I'm sure that with the growing Islamic and Muslim communities, I'm sure it wont be long until I do. their 10 to 15 percent bank growth is evidence and the Islamic banking sector is rapidly growing in the United States. But how sustainable is this growth?
In my opinion, Islamic banking system is similar to the banking systems we are used to, just that, the terms they use in Islamic banking sector is different from ours.
Islamic banks are in many ways competitors with conventional banks. They promote a different kind of agenda while participating in the same system. Yet, more than 60% of investors of large Islamic funds in the US are non-muslims. This is because the funds have established a fabulous track record for themselves and seem to be making more and more profit.
I have never seen an Islamic bank in my life before. This rapid growth rate of Islamic banking in the United States is surpring, because we actually do not have a significant increasing of Muslim people.
I just read an article about how a man in Libya was ecstatic about an Islamic bank being constructed in his city. Mainly because the banking system prevents usury and has consumer favored policies leads people to use the bank. The more profits you gain from these banks will lead to more capital investment in the area, and that reinvestment spurs the economy. Islamic banks attract not only consumers, but they help increase the overall economy of that area as well. Islamic banks don't have to be solely from Muslims, there policies are attractive to everyone.
The grow of alternative banking systems in global economy is a testament to the banking crisis of 2008 and how it still effects consumers. Islamic banking provides the opportunity to think about banking in a new light of partnerships in business ventures and for many Muslims they can do this in way that helps them better practice there faith. It will be interesting in the coming decades to see how or if the returns differ from traditional banks as the Islamic banking system becomes mainstream.
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