Banking – do you really know what the Quran and the Abrahamic religion’s rulings are on it? (God’s proposed economic structure – part 2)
How does a Bank differ from other companies?
1) A Bank is officially chartered and licensed.
2) The bank is empowered to accept deposits and to make loans, at a profit.
3) The Bank is highly regulated by various governmental agencies, to ensure they are complying with the current regulations.
Therefore, a Bank is an entity that deals in Debt. The customers deposit money in the bank – so the Bank is the borrower and the customer is the lender. The Bank then lends this money to other entities or individuals. Here the Bank is the lender and the other entities or individuals are the borrowers. The Bank makes a profit by charging a larger interest rate on the loans it gives, compared to the interest it pays to its depositors.
If the Bank is not allowed to either charge or pay interest on the loans, it will not be able to cover its expenses and will quickly go out of business.
And we have already seen that in the Torah, Psalm, Old Testament, Gospel and Quran no benefit (interest/usury/riba) has been allowed on loans. So how can banking be a viable option for financial intermedation in God’s proposed economic system, if no benefit on debt is allowed?
How can a Bank be Islamic? It is an economic impossibility.
So how should the economy and financial intermediation be structured?
The book “Islamic Finance and Trade: God’s Economic System”, is the culmination of over 25 years of research, to present the answer to the above question. You are kindly invited to Read, Review and Recommend the book. It iavailable at https://a.co/d/7N6tOVs and on all Amazon sites.
