Islamic Banking
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That is "Banking" since its existence.
Banking Basics;
$100 deposited to a bank, by the Depositer(A).
Bank promised the depositor profit $10, in putting their money in the bank for 1 month.
The Bank Loan lend the Money to Debtor $100 plus $20 bank service charge for 1 month.
The Debtor repaid the loan $120($100+$20 bank service charge) in 1month.
The bank profited $10, the Depositor profited $10.Depositor money is now $110 after a month.(profited $10 after a month)
That's the deal. That's Why it is attractive to save. Peace.
Do you want to know how money created?
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Greetings and Peace, all group
It depends on what you mean by "Islamic" banking. Different banks do different things.
http//en.wikipedia.org/wiki/Islamic_banking
An Islamic bank may have a greater return on deposit, because it may buy businesses or participate in profit sharing. In the same breath, there is also more risk involved--losses are distributed the same as gains. Islamic banks are usually very conservative in contrast to conventional banks.
Anybody who wants to save money must make the money grow, or lose by inflation; the present value of money exceeds the future value of money.
May ALLAH see fit to guide all seekers.
peace
~Abdul-Hadi
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Is it true that in Islamic banking, money deposited by person A is used to lend money to person B?
What's the deal?? How is that attractive to someone who wants to save?Peace,
Azhar.
Salaam Azhar
Can you be a bit more specific, because your question does not really match your comment. Islamic banking is very complex if one is used to "normal" banking.
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Is it true that in Islamic banking, money deposited by person A is used to lend money to person B?
What's the deal?? How is that attractive to someone who wants to save?Peace,
Azhar.
That's how banking is already done. That is why saving earns you money, the bank essentially pays you to allow them to use your money.
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Salaam Al-Ahzar,
the idea that the corporations who declare themselves 'Islamic banks' have any basis in Islam is like saying, this is an halal brothol because all the girls are Muslim, or this is Halal slavery because these people were born into slavery as their parents were slaves.
Firstly what is Riba?
Riba is Usury, what is usury?
Usury is the theft of the fruits of another.
If you gain without any labour, this means someone else has lost their labours without gaining anything from the exchange, as you have invested nothing of yourself. This is because all wealth is generated through human labour, only deceptions invent wealth that has no basis in reality, and that deception is ponzinomics, as the modern banking system uses as its base the ponzi scheme.The need to get an advance upon your labours is quiet acceptable, but this does not require anyone else to drain your efforts for the privilege, they are your labour you wish to gain an advance upon, and you are responsible to repay them, the need for a bank does not exist within that dynamic, all you need is a local repository, a surety bond system of contract and an Islamic community.
If you want to understand the repository structure it is explained on my website, a system where you gain an advance without costing any more than you have used, based upon the true generator of wealth, you.
http//servantofthelight.com/content/view/176/211/
The ideas are explained further in the contract of community
http//servantofthelight.com/content/view/178/235/
Also it is possible to claim the land back from the criminal who control the land through corporations
http//servantofthelight.com/content/view/197/239/