On some recent comments that present Islamic Banking System was not in consonance with Shariah, the Chief Spokesman of State Bank of Pakistan has come up with its usual clarification but its last lines are same shameless as had been its policy on other issues like increasing service charges, minimum balance requirement etc. The spokesman explain how the present SBP moinotiring policies are Shariah complinant, SBP Shariah Board comprises of very competent scholars, Shariah advisers are appointed on strict merit, SBP has prepared Essentials Model Agreements etc. But last and end shameful lines are that the low profit rates for depositors are industry phenomenon common for conventional and Islamic banks alike and that State Bank Governor has STRESSED upon the banks a number of time to share more of their profits with depositors. He adds that under Islamic baning profits earned on finances and investment are shared with account holders but Islamic Banks often at their own DISCRETION pass on profits to their accountholders.
A lot is read now a days about Islamic banking, Islamic funds and Islamic investment. Many banks and investment funds claim their system based on Sharia and allure the public through this tool. But the main point is, is there really any Islamic banking or can there be in near future. The answer is very simple No there is no Islamic banking available currently. Those who are keeping their savings in such labeled accounts in fact in my personal view are doing more haram than those like me who have accounts operated on normal interest based banking system.
I am not a scholar. I am a simple Muslim. I belong to no sect as in Islam neither one is Sunni nor Shia or what else. A Muslim is a Muslim. Islam has forbidden interest. Islam has rules near to the nature. Keeping in view that one may have wealth but no expertise and likewise one having expertise may not have money, Islam has allowed partnership in which both the sleeping and the active partners have equal, pro rata to ones share, distribution of profits or losses. Presently the banking industry which has put a label of Islam is flourishing day and night by earning 30 to 50% profit but like the present day traditional banking to the sleeping partner it shares hardly 3 to 4%. This distribution in no way is near to pro rata. The active partner namely the Bank, its directors and its majority share holders/sponsors digest the main chunk. The traditional interest based banking is doing the same so at present there is no difference between the so called Islamic banking or traditional banking.
Under Islamic principles participating, cooperating, joining, supporting in any form an act whatsoever minor which is un-Islamic in itself is a sin. An educated or uneducated just using his average mind knows well, invariably inside of his heart that these so called Islamic banks anywhere in the world are not Islamic as they are not sharing profits judiciously, equally and pro rata with the other partner/party (Depositors) and are sharing the profit just on almost a fixed ratio or a fraction of actual profits earned. Hence despite knowing all this the depositors joining and depositing with such banks is nothing but deliberately joining an un-Islamic act which tantamout to a greater sin. And under Islamic theology it is munafiqat {saying something and doing contrary}.
Islamic Banking can well be practiced but under the present world situation it would not be. Banking is the biggest income industry. It is well known a fact today nations can no more be made slave through any East India Company but through finance. Multinationals, international financial institutions like world bank, IMF, capital blocks, GATT, world global village, all are the forms of slave making modern tools. If true Islamic banking in any part of the world once started and the partners ie Banks and the Depositors both started getting profits shared pro rata, the world would become mad and even the non Muslims would rush transferring their savings to such a true Islamic banking which will be death to todays slave making financial policies. If a true Islamic banking started it should be taken as written on the wall that like demised BCCI it will be ruined soon under one label or the other eg it could be declared Jihadi, extremist banking etc. The reason is financial soundness in todays world is only the right of the West similarly as West can have the nuclear technology but as soon as it comes to developing countries like Pakistan, Iran it becomes a threat to the so called global village. True Islamic banking is a real nuclear like threat to the traditional banking. Also take it even no Muslim investor/sponsor will ever embark on establishing a true Islamic banking as no body in this materialism likes to share his profits judiciously with others and would never like to kill a golden given hen by acting on true Islamic principles of business. Those who are participating in today so called Islamic banking in my view are helping in using the name of Islam. Joining the traditional banking I think under the situation is less a sin than joining the so called present Islamic banking,
Last but not the least the words of SBP need to read carefully. As SBP has practical interest with the silent majority and it remains sleeping on service charges, reducing profits etc on the plea that since today market is competitive hence the banks under so called Prudential Regulations can adopt their own policies. The wording of SBP is it has EMPHASIED on Islamic banking to share more profits. This word emphasis from the monitoring agency in itself speaks the intent, practical wish and its writ.
A lot is read now a days about Islamic banking, Islamic funds and Islamic investment. Many banks and investment funds claim their system based on Sharia and allure the public through this tool. But the main point is, is there really any Islamic banking or can there be in near future. The answer is very simple No there is no Islamic banking available currently. Those who are keeping their savings in such labeled accounts in fact in my personal view are doing more haram than those like me who have accounts operated on normal interest based banking system.
I am not a scholar. I am a simple Muslim. I belong to no sect as in Islam neither one is Sunni nor Shia or what else. A Muslim is a Muslim. Islam has forbidden interest. Islam has rules near to the nature. Keeping in view that one may have wealth but no expertise and likewise one having expertise may not have money, Islam has allowed partnership in which both the sleeping and the active partners have equal, pro rata to ones share, distribution of profits or losses. Presently the banking industry which has put a label of Islam is flourishing day and night by earning 30 to 50% profit but like the present day traditional banking to the sleeping partner it shares hardly 3 to 4%. This distribution in no way is near to pro rata. The active partner namely the Bank, its directors and its majority share holders/sponsors digest the main chunk. The traditional interest based banking is doing the same so at present there is no difference between the so called Islamic banking or traditional banking.
Under Islamic principles participating, cooperating, joining, supporting in any form an act whatsoever minor which is un-Islamic in itself is a sin. An educated or uneducated just using his average mind knows well, invariably inside of his heart that these so called Islamic banks anywhere in the world are not Islamic as they are not sharing profits judiciously, equally and pro rata with the other partner/party (Depositors) and are sharing the profit just on almost a fixed ratio or a fraction of actual profits earned. Hence despite knowing all this the depositors joining and depositing with such banks is nothing but deliberately joining an un-Islamic act which tantamout to a greater sin. And under Islamic theology it is munafiqat {saying something and doing contrary}.
Islamic Banking can well be practiced but under the present world situation it would not be. Banking is the biggest income industry. It is well known a fact today nations can no more be made slave through any East India Company but through finance. Multinationals, international financial institutions like world bank, IMF, capital blocks, GATT, world global village, all are the forms of slave making modern tools. If true Islamic banking in any part of the world once started and the partners ie Banks and the Depositors both started getting profits shared pro rata, the world would become mad and even the non Muslims would rush transferring their savings to such a true Islamic banking which will be death to todays slave making financial policies. If a true Islamic banking started it should be taken as written on the wall that like demised BCCI it will be ruined soon under one label or the other eg it could be declared Jihadi, extremist banking etc. The reason is financial soundness in todays world is only the right of the West similarly as West can have the nuclear technology but as soon as it comes to developing countries like Pakistan, Iran it becomes a threat to the so called global village. True Islamic banking is a real nuclear like threat to the traditional banking. Also take it even no Muslim investor/sponsor will ever embark on establishing a true Islamic banking as no body in this materialism likes to share his profits judiciously with others and would never like to kill a golden given hen by acting on true Islamic principles of business. Those who are participating in today so called Islamic banking in my view are helping in using the name of Islam. Joining the traditional banking I think under the situation is less a sin than joining the so called present Islamic banking,
Last but not the least the words of SBP need to read carefully. As SBP has practical interest with the silent majority and it remains sleeping on service charges, reducing profits etc on the plea that since today market is competitive hence the banks under so called Prudential Regulations can adopt their own policies. The wording of SBP is it has EMPHASIED on Islamic banking to share more profits. This word emphasis from the monitoring agency in itself speaks the intent, practical wish and its writ.
