Islamic Banks Are Surviving the Financial Crisis Better Than Western Banks → Washingtons Blog
Islamic Banks Are Surviving the Financial Crisis Better Than Western Banks - Washingtons Blog

Thursday, December 25, 2008

Islamic Banks Are Surviving the Financial Crisis Better Than Western Banks

As I have previously written, the Islamic banking system may survive the financial crisis better than the Western system because it forbids usury and the buying and selling of debt

The Associated Press has just covered the story:

Islamic banks, which avoided much of the damage from the subprime mortgage crisis by following strict principles laid out in the Quran.***

A November report by Moody's shows that Islamic banks have been fairly resilient.***

Interest payments, short selling and contracts considered excessively risky are also prohibited. That rules out some of the products that got Western finance into so much trouble such as subprime mortgages, collateralized debt obligations or credit default swaps.***

"Islamic banking is saying we are close to our clients and we're only going to do genuine transactions where we can see the asset, we understand the asset, we can make an assessment of that asset: whether it's financing a ship or an aircraft they will go and have a look at the business. It's giving guidance as to what banking should be."

So is the Islamic financial system superior to Western banking?

Well, as Michael Rivero of WhatReallyHappened points out in a brilliant comment to the AP story, the Bible also prohibits usury, but Western nations have abandoned that principal:

Western bankers have made themselves demigods with a combination of usury and legalized state-sanctioned counterfeiting. They attack anyone who represents any threat ot their enslavement of others, whether it is the Islamic system of lending or the re-introduction of fixed worth monetary systems.

And, contrary to the popular myth promulgated by the "Clash of Civilization" aficionados, the prohibition against usury (compound interest) is not confined to the Quran, but is found in the Bible itself. The following are taken from the King James version of the Bible (and I'll bet your pastors never read these to you from the pulpit!)

25 " If you lend money to any of My people who are poor among you, you shall not be like a moneylender to him; you shall not charge him interest.

26 "If you ever take your neighbor's garment as a pledge, you shall return it to him before the sun goes down.

27 "For that is his only covering, it is his garment for his skin. What will he sleep in? And it will be that when he cries to Me, I will hear, for I am gracious. (Exodus 22:25-27)

36 'Take no usury or interest from him; but fear your God, that your brother may live with you.

37 'You shall not lend him your money for usury, nor lend him your food at a profit. (Leviticus 25:36-37)

19 " You shall not charge interest to your brother -- interest on money or food or anything that is lent out at interest.
(Deuteronomy 23:20)

10 Woe is me, my mother, That you have borne me, A man of strife and a man of contention to the whole earth! I have neither lent for interest, Nor have men lent to me for interest. Every one of them curses me. (Jeremiah 15:10)

7 If he has not oppressed anyone, But has restored to the debtor his pledge; Has robbed no one by violence, But has given his bread to the hungry And covered the naked with clothing;

8 If he has not exacted usury Nor taken any increase, But has withdrawn his hand from iniquity And executed true judgment between man and man;

9 If he has walked in My statutes And kept My judgments faithfully -- He is just; He shall surely live!" Says the Lord GOD. (Ezekiel 18:7-9)

---------

13 If he has exacted usury Or taken increase -- Shall he then live? He shall not live! If he has done any of these abominations, He shall surely die; His blood shall be upon him. (Ezekiel 18:13)

17 Who has withdrawn his hand from the poor And not received usury or increase, But has executed My judgments And walked in My statutes -- He shall not die for the iniquity of his father; He shall surely live! (Ezekiel 18:17)

12 "In you they take bribes to shed blood; you take usury and increase; you have made profit from your neighbors by extortion, and have forgotten Me," says the Lord GOD. (Ezekiel 22:12)

So the question is whether there is any wisdom in the traditional religous prohibition against usury. I think the answer is yes.

And Islamic bankers apparently follow that prohibition much more faithfully than Western bankers.

See also this.

Note: I despise fundamentalist Muslims as much as fundamentalists of any religion. So I'm not talking about fundamentalists, but moderate Muslim bankers.

And rather than being an issue of superiority of the Muslim faith, I merely see this as the Judeo-Christian traditions losing their way, and religious leaders distorting the truth.

Banking isn't the only area in which Western nations have lost their ethical foundation. Torturing innocent people and launching wars based on lies are also contrary to the teachings of the Bible.

5 comments:

  1. Why would the zionist controlled banks adhere to any religious principles, be it Christian or Muslim?

    ReplyDelete
  2. To buy cabal online alz , it is not the aim of the cable. It is the game which brings a lot of happiness to me. We buy the cabal alz together. The beautiful story, we can not be forgotten buy cabal alz . You will not regret to have cabal gold . So I will continue to have cabal money , it is a beautiful fairy tale, it looks like my life.

    ReplyDelete
  3. Do you like playing in the game which you need to use requiem gold, when you do not have requiem lant, you must borrow requiem money from friends, or you buy cheap requiem lant. If you get requiem online gold, you can continue this game.

    ReplyDelete
  4. 看房子,買房子,建商自售,自售,台北新成屋,台北豪宅,新成屋,豪宅,美髮儀器,美髮,儀器,髮型,EMBA,MBA,學位,EMBA,專業認證,認證課程,博士學位,DBA,PHD,在職進修,碩士學位,推廣教育,DBA,進修課程,碩士學位,網路廣告,關鍵字廣告,關鍵字,課程介紹,學分班,文憑,牛樟芝,段木,牛樟菇,日式料理, 台北居酒屋,日本料理,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,台北結婚,場地,住宿,訂房,HOTEL,飯店,造型系列,學位,牛樟芝,腦磷脂,磷脂絲胺酸,SEO,婚宴,捷運,學區,美髮,儀器,髮型,牛樟芝,腦磷脂,磷脂絲胺酸,看房子,買房子,建商自售,自售,房子,捷運,學區,台北新成屋,台北豪宅,新成屋,豪宅,學位,碩士學位,進修,在職進修, 課程,教育,學位,證照,mba,文憑,學分班,網路廣告,關鍵字廣告,關鍵字,SEO,关键词,网络广告,关键词广告,SEO,关键词,网络广告,关键词广告,SEO,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北結婚,場地,結婚,場地,推車飲茶,港式點心,尾牙春酒,台北結婚,婚宴場地,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北結婚,場地,居酒屋,燒烤,美髮,儀器,髮型,美髮,儀器,髮型,美髮,儀器,髮型,美髮,儀器,髮型,小套房,小套房,進修,在職進修,留學,證照,MBA,EMBA,留學,MBA,EMBA,留學,進修,在職進修,牛樟芝,段木,牛樟菇,關鍵字排名,網路行銷,关键词排名,网络营销,網路行銷,關鍵字排名,关键词排名,网络营销,PMP,在職專班,研究所在職專班,碩士在職專班,PMP,證照,在職專班,研究所在職專班,碩士在職專班,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,EMBA,MBA,PMP
    ,在職進修,專案管理,出國留學,EMBA,MBA,PMP
    ,在職進修,專案管理,出國留學,EMBA,MBA,PMP
    ,在職進修,專案管理,出國留學,婚宴,婚宴,婚宴,婚宴

    住宿,民宿,飯宿,旅遊,住宿,民宿,飯宿,旅遊,住宿,民宿,飯宿,旅遊,住宿,民宿,飯宿,旅遊,住宿,民宿,飯宿,旅遊,住宿,民宿,飯宿,旅遊,住宿,民宿,飯宿,旅遊,美容,美髮,整形,造型,美容,美髮,整形,造型,美容,美髮,整形,造型,美容,美髮,整形,造型,美容,美髮,整形,造型,美容,美髮,整形,造型,美容,美髮,整形,造型,設計,室內設計,裝潢,房地產,設計,室內設計,裝潢,房地產,設計,室內設計,裝潢,房地產,設計,室內設計,裝潢,房地產,設計,室內設計,裝潢,房地產,設計,室內設計,裝潢,房地產,設計,室內設計,裝潢,房地產,設計,室內設計,裝潢,房地產,進修,在職進修,MBA,EMBA,進修,在職進修,MBA,EMBA,進修,在職進修,MBA,EMBA,進修,在職進修,MBA,EMBA,進修,在職進修,MBA,EMBA,進修,在職進修,MBA,EMBA,進修,在職進修,MBA,EMBA,住宿,民宿,飯店,旅遊,美容,美髮,整形,造型,設計,室內設計,裝潢,房地產,進修,在職進修,MBA,EMBA,羅志祥,周杰倫,五月天,蔡依林,林志玲,羅志祥,周杰倫,五月天,蔡依林,林志玲,羅志祥,周杰倫,五月天,蔡依林,羅志祥,周杰倫,五月天,蔡依林

    ReplyDelete

→ Thank you for contributing to the conversation by commenting. We try to read all of the comments (but don't always have the time).

→ If you write a long comment, please use paragraph breaks. Otherwise, no one will read it. Many people still won't read it, so shorter is usually better (but it's your choice).

→ The following types of comments will be deleted if we happen to see them:

-- Comments that criticize any class of people as a whole, especially when based on an attribute they don't have control over

-- Comments that explicitly call for violence

→ Because we do not read all of the comments, I am not responsible for any unlawful or distasteful comments.