Islamic banks .. successes shining in the sky of the global economy

[yota691]

Islamic banks .. successes shining in the sky of the global economy Islamic banks .. successes shining in the sky of the global economy

News Source:Abdul Ali Salman

 

Section:Page economic

 

September 14, 2014 11:41

 

Readers Number:55

 

 

 

 

 

  Activity Islamic banks witnessed in the recent period significant growth, with increased work of these banks and widened at the level of the world, especially the banks, according to some reports, banking has achieved tangible success in its field, through the provision of Islamic banking formulas far from the base of the debt and usury practiced by banks traditional.

In doing so, was able to confront and overcome the global financial crisis, as some experts say, who stressed that the coming years will be important years in the success of the work of these banks, which relies mainly on financing the real sectors, which will contribute to and effectively in achieving economic growth integrated, this addition that Islamic banking in many Arab countries, have succeeded in meeting the side of the customer's needs within the banking market, but did not achieve the full objectives Vabannah legislative work of those banks are still inadequate and need to be developed considerably.

According to some observers, there are a lot of challenges facing the growth of Islamic banking in many countries of the world, most notably the lack of legislative structure, especially in Islamic finance as it undergoes a lot of banks and branches of Islamic transactions with the laws of central banks operating in those countries, and the weakness of human competencies within banks that deal Islamic finance and its inability to convince customers, in addition to the conflicting fatwas private financial transactions in many countries, which is an obstacle to Islamic finance.

The Islamic banks and also refers to some sources, is a financial institutions, offering banking business within the framework of Islamic law and rely on outlets legitimate to get the money and invested in a legitimate way through the means and tools, such as speculation and Murabaha and sale of goods, leasing and others.

Islamic economics

In this regard, he needed the Islamic economy and the fundamentals of Islamic banking to a lot of years, so that people realize right Nzerthma about many of the global financial issues, and despite the fact that the period of the global financial crisis formed a unique opportunity to make sure that the data, but that the path was not easy in the beginning. Owing to the presence of the dimensions of legitimacy deep in the analysis of financial transactions on the one hand and the lack of Muslims for decades to economic language which they can explain their point of view of scientists economy constitute a barrier cybernetic lasted for decades between analysts economy is global and their counterparts Islamists, however, that the spread of education and the development of a common language that allows mutual understanding of the data allowed way to address it, as well as political developments which have led some states to apply the assets of Islamic economics and return to the international arena.

Dr Abbas Mirakhor, one of the most who have worked in the field of Islamic economics internationally and within the International Monetary Fund, said that the experts of the international economy they think the impossibility of the existence of an Islamic financial system because they see the impossibility of the system rather than the benefit of usury, has pushed this to the irony of this could happen They believe that such a system would be "Voodoo Economics" (a type of magic) as not based on the real rules.

He adds Mirakhor that by the middle of the eighth decade of the last century, and draws Iran, Pakistan and Sudan towards the Islamic system of finance and banking, and do these countries offer details of its plans, began to show objections realism provided by the experts of the capitalist economy and which can be summarized in the following points:

First, allow the existence of interest-free loans would open the door to a huge demand for loans offset by the absence of full offers, in the sense that all people will want to penile loans because they are inexpensive as it does not benefit them, would abstain in return for lending the money the owners for not benefit from it.

Second, the financial system, which depends on interest-free loans will not be able to balance between supply and demand, as that would mean the absence of the absence of interest savings in the community, and the absence of savings there would be no development investments.

Third, in a system that miss when riba governments will not be able to exercise any monetary policy because they will miss financial instruments.

Fourth, countries that apply such a system will lose the ability to attract funds from abroad, the capital of existing home Vstafr leave the local market.

It draws Mirakhor to that by the year 1988, economists have been able to use the mechanisms of financial and economic analysis to demonstrate the lack of modern health such criticism for the following reasons:

First: the establishment of a financial system that can be designed without a fixed rate of interest, but recent research has shown a lack of theory is able to provide a convincing explanation explains why there is a nominal interest rate. Research also proved that the lack of fixed interest on the money does not necessarily mean that after the end of the loan holder will not achieve any return on financial assets.

Second, the return on capital in the Islamic economy produces actual returns achieved in the sectors that have been the investment of money. Thus, the benefit is not linked to investment returns, but is expected to invest, and this yield is what drives people to choose the investment or savings, and thus the need to connect each of these factors benefit fixed.

Third, the absence of usury will enhance the growth of the economy, will not prevent governments from owning financial instruments as experts can design financial instruments authorities can be used to manage liquidity.

Fourth: no reason to believe that in the absence of pre-defined interest will leave the domestic capital market as it can draw through the expected return on investment projects.

He adds Mirakhor, in a lecture precedent, that the defect is located in the capitalist system based on the interest he has attracted the attention of a large number of economists, including the American Hyman Minsky, who believed that the capitalist system will suffer from crises permanently because of the disparity that can not be handled between the financial obligations , there are deposits, which are short-term loans, and assets, which is about long-term investments, which will create a constant state of the race between banks to raise interest to attract funds that opens the door to the crisis. According to CNN.

Ditto for the economic well-known University of Chicago, Lloyd Metzler, be presented in two decades fifth and sixth of the last century, a proposal for the establishment of an economic system to contract an alternative to the current system based on the "value" and not "religion", stressing that this will allow the establishment of a system beyond the crises of the current banking system . In 1985, the researcher presented a study of the economic Mohsin Khan are among the most prominent historical studies published by the International Monetary Fund, where the display of the great similarity between the ideas proposed by Metzler and between Islamic financial assets.

New opportunities

Meanwhile enters the field of Islamic finance, financial products based on renewable energy and sustainable agriculture with asset managers seek to find opportunities to combine ethical investment and legitimate. And adheres to the principles of Islamic finance, which forbids religion activities such as gambling and liquor and tobacco trade sector, but only just begun to focus on the ideas of the broader social responsibility such as protecting the environment.

In Malaysia recently announced guidelines for issuing directives instruments of social responsibility in order to help companies raise funds for projects such as renewable energy and affordable housing. In April, signed a Supreme Council of Energy in Dubai and the World Bank signed an agreement to develop a funding program for environmental investment for the emirate that include Islamic bonds "green." Dubai aspires to provide five percent of its energy needs from sustainable sources and retrofitting buildings to reduce energy consumption.

In the meantime, put companies in Britain, Canada and Hong Kong investments in Shariah-compliant projects in sustainable agriculture, which could attract money from investors in Islamic instruments in the Gulf and Southeast Asia, and local investors. The logic of this is that it can be through environmental investment products to expand demand if they become compliant with the law in order to be attractive to Muslims. At the same time, the non-Muslims who may be reluctant to Islamic investments - to concerns about the price and the difficulty and lack of familiarity - would accept them if they are in the service of the environment.

It was not clear how successful these efforts. In recent years, stormed the Islamic funds market investments with social responsibility but faced difficulties for reasons including a lack of distribution channels. The expanded role of the funds from the Gulf and Southeast Asia for the distribution of some funds Islamic European investors using undertakings for collective investment in securities convertible - which serve as a "unified passport" for investment products - but it has had mixed success did not yield Activity large size.

The new hybrid products are not funds but tools designed specifically to invest in a particular class of asset specific country or region. It combines Islamic norms and practices required by other companies, sustainable investments. In June, developed Invest AG Properties in Ontario Islamic product allows ownership of farms under the supervision of the Canadian House review of legitimacy, a consulting firm based in Bahrain. Said Ruby Duncan, Vice President of Invest AG in Dubai, said the project will buy agricultural land management company holds the distinct methods of sustainable agriculture, such as soil conservation and crop rotation.

The company started which currently manages agricultural land worth 70 million Canadian dollars (64 million dollars) put its product on the Islamic investors in the Gulf. Duncan said that the Saudi company expressed an interest in establishing a similar fund to provide advice Invest AG, but did not mention the name of the company. He said, "We found that there are three factors that promote this type of agricultural investment: the need to invest ethically stable and the need to encourage investment on the development of society and helps it and the need for food security."

Said Yasser Dahlawi CEO of Dar review it the third agricultural investment which is supervised by the company since December. "The agricultural resources available to investors of Islamic instruments is limited." And provide As.sa.as Varmland British Islamic investment program for the farmer and the Argentine put Tredoum Group in Hong Kong, a project to cultivate lute investors on Islamic instruments.

It is certain that the success of all these projects is not granted, it is premature to say whether this type of investment Hybrid luck would befall the biggest success for Islamic funds that have already marketed in Europe. In Britain, for example, failed this year plans to invest an Islamic project environmentally friendly.

Has planned financial consulting firm Simply Islamic law to collect three million pounds (five million dollars) by the end of June to build a solar power plant through the use of tax credits for the program of government investment projects in the development of the structure of the financing system of the agency. But the project did not collect the target value by the deadline for reasons including that the structure did not allow the use of Islamic financial instruments, reducing the traditional returns that can be displayed. Did not allow the small size of the project to collect funds through the issuance of instruments. According to Reuters.

Anas said Hassan, managing director of corporate finance at Simply Sharia "There is a difference performance between solar products traditional program of investment projects (in terms of return target of 1.15 pounds per pound investor) and the product is compatible with Sharia (where the target return 1.10 pounds per pound investor.) And" due The difference mainly to the high level of debt in the structure of the product while the traditional version was pure Islamic finance contributor. "

Goldman Sachs

In the same context, examines Goldman Sachs plans to raise 500 million dollars, at least in the first version released by the Islamic bonds (Sukuk) in an indication of the growth of Islamic finance with the traditional big banks seeking to benefit from the funds the Middle East. The document said the Mandated Lead The American bank will meet with investors in Qatar and the UAE to discuss the sale of instruments. It is expected to reach maturity instruments five years.

If the deal goes ahead after meetings with investors, Goldman Sachs will become the second Islamic bank is selling instruments issued after the unity of Middle Eastern instruments for HSBC in 2011, valued at 500 million dollars. A source familiar with the underlying assets in a deal that Goldman Sachs will be the instruments linked to commodities, and crude oil, adding that the bank will use the proceeds of the sale in the activities of his unit commodity Jah.aron & Co.

And other global banks are preparing to march on Goldman Sachs approach. Months have seen the last preparations on the part of France's Societe Generale, Bank of Tokyo-Mitsubishi UFJ, Japan's largest bank to issue Sukuk in Malaysia. The previous attempt to Goldman Sachs for the sale of instruments in 2011, has sparked controversy before it repealed after some accused him of failing to follow Islamic principles. But the American bank is now returning to the market amid rapid growth of the Islamic finance industry with support from the booming economies in the Gulf region and Southeast Asia.

The data showed that new versions of the instruments since the beginning of the current year amounted to 85.9 billion dollars in 456 transactions around the world, up from 74.9 billion dollars in 558 transactions in the same period of last year. Those deals are still small compared with conventional finance, but has now risen enough to attract the attention of Western borrowers and push them to enter the market. Some suspect that Goldman Sachs may take advantage of Islamic finance, where analysts hinted that it may use the proceeds of selling the instruments to lend to clients or the interest rate may not be traded version of its true value which is inconsistent with the provisions of Islamic Sharia. According to Reuters.

Goldman Sachs insists that it is not the basis for these doubts Although advisers immigrants to leave the plan in 2011, but he was not ahead in the deal then. The document said that Goldman Sachs chose himself and Abu Dhabi Islamic Bank and Emirates NBD and National Bank of Abu Dhabi and NCB Capital investment banking arm of National Commercial Bank of Saudi Arabia to arrange meetings for investors.

Map of Islamic banks

On another economic report expected Malaysia to witness the face of the Islamic banking industry shift markedly, under any circumstances do bank giant outcome of the current negotiations to merge three Islamic banks Malaysian large, adding that the bank will be able for the first time to compete with conventional banks around the world will contribute to devote banking model Malaysian .

The report said the agreement proposed merger will change the map of Islamic banking has redefined the way to do transactions in this sector, adding that the Islamic windows of conventional banks Bank, such as HSBC and "Standard Chartered" had to resort to the weight of its branch traditional in order to get a share of a large market instruments, but it has changed after the merger is expected. According to the report published in the newspaper "The Star" Malaysian widespread, that the bank could wreak large-scale changes in the institutional work of Islamic banks, which are still subject to many of them in wealthy families or governments.

Include the merger of three banks are "a group CIMB Holding" and "RHB Capital" and "Malaysia Bildng Society," which got regulatory approval for the start of negotiations, what paves the way for the establishment of "a giant Islamic" has enough power to win deals large The deployment of the Malaysian model of Islamic banking globally, as many Islamic banks in Malaysia may be trying to catch up with the train and conduct mergers between them.

Malaysia has a hierarchical system particular to organize the production of any banking product is compatible with the law, while leaving other states for the bodies of legitimacy in each bank separately making this decision, and Ntkd some so considering that leave things to the banks leads to a variation in the product and leaves the customer in a quandary.According to CNN.

Regarding the impact of the deal on the banking business newspaper "The Star" Malaysian Johan Lee, a partner in the office, "Lee & Partners" Law Firm in Kuala Lumpur as saying: "When there is a bank giant is followed by contraction in the number of players, the task of coordinating things will be easier, knowing that the bank will move globally, what puts Malaysia on the location of the top level of global Islamic banking. "

India and the Philippines

Besides newspaper report said Indian authorities in New Delhi is seriously considering the issue of Islamic banks, especially in light of the urgent need to the country to attract funding from Islamic countries rich in order to use infrastructure projects, adding that the Central Bank of India's some hesitation on the basis of religion, on the issue . The report said a news publication site "First Post" The introduction of the adoption of Islamic banking exists in India's third-largest economy in Asia, especially with the opening up of the country on projects of economic reform, in the light of the Declaration of Reserve Bank of India (Central) on the adoption of guidelines governing the work of the two types of banks are "banks pay" and "small banks."

The report said that those who support the adoption of a system of Islamic banking in India indicate that the adoption attracts funds from wealthy nations predominantly Muslim, what therefore helps to finance infrastructure projects giant in India, which is suffering its development plans currently funding gap estimated Petrleon dollars. The report adds that the call for the adoption of Islamic banking gained momentum after subtracting the case before the "Committee for Minorities" by the president, "the merits of Habib Allah" to submit a memorandum on the issue to the Ministry of Finance in 2012, but the Reserve Bank of India felt that it would be difficult to allow the work of the banks are not accepted interest, and that for legal reasons, is that the bank returned and agreed abruptly in August / August 2013 on the work of a finance company consistent with the law in the state of Kerala, India.

He favored the existence of the report and the frequency with the Reserve Bank of India in the adoption of Islamic banking for religious reasons, pointing out that the bank was concerned about the possibility that the object later on some forms of economic activity for those banks are open for criticism by the Muslims in the country. The report also pointed to the possibility of addressing those concerns with the Indian authorities, through the imposition of control measures on the source of funds and conversion method and transparency and to identify the point of the money the final, which are easy when compared to the gains that may accrue to India as a result of attracting billions of dollars of Islamic countries rich in oil.

Meanwhile, the plan may help peace and the abolition of foreign ownership ceiling to enact new rules for the activities of Islamic banking in the Philippines to breathe new life into one of the oldest financial institutions in the Islamic world. The Islamic Investment Bank "Secretariat" is the only bank in the country since 1974, which provides financial products compliant with Sharia principles such as the prohibition of bank interest and gambling. But while enjoying the Islamic banks around the world and fast growth rates and abundant profits did not achieve the "Secretariat" profitable for years and eventually forced to offer traditional banking products so as not to stop the activity.

And shed the story of "Secretariat" light on the challenges faced by Muslim minorities to get banking services without the benefits of a bank outside the main centers for Islamic banks in the Middle East and Southeast Asia. Because of its small size and lack of experience of Islamic banking and the bank faced "Secretariat" Despite the difficulties rehabilitation plan initiated by the five-year term in 2009, the parent corporation of the Philippines, Development Bank.

In 2012 secretariat to incur a loss of $ 30.6 million pesos (706 thousand and $ 400), but still better than a loss of $ 124.3 million pesos in 2008, has changed the situation after the historic peace agreement between the Philippine government and Muslim rebels who helped revive the south of the country after the conflict lasted 40 years and caused the displacement of two million people and the economic recession.

And gives the agreement brokered by the Government of Malaysia Mindanao region with a Muslim majority wider powers in economic and cultural aspects. In the framework of the agreement puts the central bank rules for Islamic banking activities. Earlier this month, the government allowed foreign banks to full control over local banks after the foreign ownership ceiling of no more than 60 percent.

Said Nicholas Francis Chua, director of investment banking activities in the Philippines, Development Bank of the factors that a renewed interest on the part of potential buyers for the bank Secretariat. "Since last year we have received a number of offers from across Asia and the Middle East and Europe to conclude a partnership or to inquire about the sale."

Chua said that those offers came from the entire Islamic banks and conventional banks have Islamic branches but did not specify the identity of any of them. He said, "With respect to the Government Secretariat is currently reviewing the entire process. Government wants to be sure of the availability of the regulatory framework before privatization." Chua said that any potential buyer will have to provide a public display because the policy of the Philippines, Development Bank so require.

The speeches "Secretariat" Dr. buyers for years not to inject new liquidity, but also to introduce new products and filter products also generating interest banking in the bank's portfolio. And allows scholars with such practice under necessary. But so far not announced any Islamic bank intentions. She said local media said CIMB Group Holdings Malaysian owner of CIMB Islamic Bank plans to buy a stake, but a spokesman denied that CIMB. According to Reuters.

A source in the "Secretariat" The Malaysian group has already submitted a bid in 2006 but was conditional that the Government develop a regulatory framework for Islamic banks within two years. The source, who requested anonymity because it was not announced officially, "it does not offer Vsahbua" but recent developments have renewed interest. "Maybe not progressed after the appropriate party."

Basel 3 standards

On the other hand, a time when banks around the world to meet stringent regulatory standards Basel 3 Islamic banks face a source of uncertainty may be costly which is how regulators will treat deposits those banks. Islamic banks seem able to cope with the rules of the Basel Convention 3, which will be applied gradually throughout the world over the next few years. Most of the banks of the Gulf and Southeast Asia, where economies are strong.

Because Islamic finance frowns speculative cash budgets that banks clean a large degree of derivatives and complex high-risk assets, which flooded some conventional banks in the midst of the global financial crisis. So not supposed to Islamic banks face significant problems in meeting the standards of the Basel 3 concerning the minimum capital. But deposits may become a source of trouble. Because of the sanctity of interest payments in accordance with the principles of Sharia Islamic banks to attract deposits, mostly through investment accounts and profit-sharing system of this type is generally less stable than traditional deposits.

It is expected that Islamic banks claim under the Basel 3 rules to compensate for the impact of this volatility by increasing the volume of high quality liquid assets in their possession. However, the Islamic securities markets are much smaller and less deep and sophisticated than the traditional markets leading to a shortage of high quality liquid assets compliant with Sharia, which in turn put pressure on the Islamic banks from two sides.

Said Mohammed DAMAC credit analyst at Standard & Poor's in Paris, "These two of the most important challenges of Basel 3 to the Islamic finance industry." According to a special study of the value of the assets of commercial banks, Islamic approximately 1.2 trillion dollars at the end of last year. They constitute about a quarter of deposits in the Gulf Arab states and more than five in Malaysia. Basel 3 requires banks to maintain sufficient high quality liquid assets to cover net outflows for a period of 30 days in the case of exposure to heavy pressure. The flows are calculated to give the sources of funding, including investment accounts, a variety of weights. The greater the risk in the source of funding was the size of liquid assets necessary high-risk considerably.

So it will depend greatly on the weights that would give national regulatory bodies around the world authorized to apply the Basel 3 in their respective areas to the kind of calculations. There was no sign yet from officials of the expected weights. In light of their eagerness to develop the sectors of Islamic banks are unlikely to have to determine punitive weights. But may be unable to investment accounts treated on an equal footing with traditional bank deposits. For example, the report says that Standard & Poor's maturity investment accounts in Islamic banks are usually relatively shorter.

Damac said that the treatment of investment accounts will also depend on factors specific to Islamic banking sector in each country, such as how it was performed in previous crises scored Islamic banks to pass the losses to depositors under the contracts concluded with them. It appeared unlikely that a clearer picture by early next year, at least where it is expected to issue Islamic Financial Services Board in Malaysia guidance note on the subject.

Damac said, "Seoul is in the end to the regulatory authority in each country in order to decide on the treatment of investment accounts, and here lies the importance of the Guidance Note for the Financial Services Board in Alrkabaan to help administrators determine the treatment of investment accounts." A source familiar with the consultations Financial Services Board that the memo will address issues such as contractual rights to depositors and whether, for example, they can withdraw their money in less than 30 days without a large fine.

The Malaysian central bank issued some guidelines regarding investment accounts, saying he Sasnfea into two types: investment accounts generally equivalent in general and traditional retail deposits and investment accounts private or restricted are considered similar to the investment accounts under management. Islamic banks and gave a transitional period of two years of separation between the two species. But while the central bank has already identified ratios and weights for Basel 3 rules concerning capital adequacy, it did not announce after the requirements for high quality liquid assets to cover the investment accounts. Commercial banks and think they may announce early next year after the issuance of guidance Islamic Financial Services Board.

According to Standard & Poor's says the Basel 3 The national regulatory bodies can Onjae in the world to determine ratios of three percent or higher for traditional bank deposits and up to ten percent of deposits less stable. The end of the day most of the Islamic banks to the weights in that range, and given the size of the deposits related to any difference by several percentage points may significantly affect the volume of high quality liquid assets that would have to be maintained by banks.

The investment accounts of more than a matter of the pressure on central banks and governments in the Muslim world to address some of the old problems in the sector. One of those problems, a lack of supply of high quality liquid assets. With the exception of Malaysia and Bahrain Damac says that central banks do not issue enough instruments classified as high-risk, liquid assets.

And instruments of government suitable for this purpose, but most of the instruments of sovereign either not listed in developed markets, or was not actively traded, making for Islamic banks it is extremely difficult. This contrasts with the huge markets for high-quality government debt such as Treasury bonds, American and German that traditional banks can be purchased easily.

He pointed out that Damac alternatives such as short-term instruments issued by the Islamic Corporation for the management of liquidity, which was established to promote cross-border market in Islamic instruments remain small compared with the size of the sector. As part of its efforts to become a center for Islamic finance Dubai is working on the inclusion of instruments in stock exchanges and encourage its parastatals to issue negotiable instruments, but it may take years before they can supply keep up with demand. According to Reuters.

Another problem is the insurance on deposits. The ruling on deposits as stable requires that covered by insurance protection insurance programs but rare Islamic causes them to government support for Islamic banks is understandable implicit in many of the Gulf states. Bahrain was introduced Islamic insurance on deposits in 1993 and in May last year, Qatar said it will develop a program for Islamic deposit insurance. In June, Bangladesh said that the program exists is managed by the central bank will include Islamic deposits. Said the source familiar with the consultations Islamic Financial Services Board, "it will be difficult for Islamic banks in terms of weights investment accounts, but there are solutions or palliatives form appears as the country."

 

26/5/140914

Add this..Posted 06 September 2014 - 08:06 AM

Goldman Sachs» plans to launch Islamic bonds for the first time with 500 million dollars

 

 

 

 

Date Published: Saturday, September 6th, 2014

Bank of America's investment plans «Goldman Sachs» start providing a new service represented in Islamic investment instruments, compatible with Islamic law, which does not include the profits of usury.

The newspaper «Financial Times» yesterday, that the instruments will continue for more than five years, and sizes up to 500 million dollars.

The newspaper added that the representatives of the bank will meet with investors from the UAE and Qatar to discuss this matter.

 

 

And tried to Goldman Sachs before three years ago, that falls within the Islamic investment instruments transactions to no avail, because the Muslim scholars and directed criticism at the time of the investment bank's structure.

 

The newspaper said the American, the drawbacks that existed Stnhy now set aside by the bank.

The bank HSBC, the British bank's first big international feet in 2011, the first instruments that are consistent with Islamic law.

The market has flourished this type of bonds in recent years, but it fell significantly in 2013.

Read more: http://dinarvets.com/forums/index.php?/topic/186116-goldman-sachs»-plans-to-launch-islamic-bonds-for-the-first-time-with-500-million-dollars/#ixzz3DOCYeKje

add this one as well..Posted 29 July 2014 - 02:33 AM

Islamic economics of «magic voodoo» to astound the West economists

Source: 

• Dubai - the statement

Date:  July 28, 2014

Islamic economics is gaining a growing confidence in the global community

•  

I need Islamic economics and Islamic banking assets to a lot of years, so that people realize Nzerthma right about many of the issues of the global financial and despite the fact that the period of the global financial crisis formed a unique opportunity to make sure that the data, but that the path was not easy in the beginning.

A report published by «CNN» news that due to the presence of the dimensions of legitimacy deep in the analysis of financial transactions on the one hand and the lack of Muslims for decades to economic language with which they can explain their point of view of economists as a barrier cognitively lasted for decades between analysts economy is global and their counterparts Islamists, however, the spread of education and the development of a common language that allows the mutual understanding of the data have allowed the field to address this as well as the political developments that have led some countries to apply the assets of Islamic economics and return it to the international arena.

Real rules

Dr Abbas Mirakhor one of the most who have worked in the field of Islamic economics internationally and within the IMF Economists International they believed the impossibility of the existence of an Islamic financial system because they see the impossibility of the system, not the benefit of asthma have pushed this to the irony of this could happen, considering that the system Such will be the «economy Voodoo» (kind of magic)   as not based on the real rules.   

Mirakhor adds that by the middle of the eighth decade of the last century and went Iran, Pakistan and Sudan towards the Islamic system of finance, banking, do these countries offer details of its plans, began to appear objections realism provided by the experts of the capitalist economy.

According to a report «CNN» these objections can be summarized in the following points:

First, allow the existence of interest-free loans would open the door to a huge demand for loans offset by a complete absence of the presentations in the sense that all of the people you'll want to penile loans because they are inexpensive because it does not benefit the other hand, employers will refrain from lending money to not benefit from it.

Second, the financial system, which depends on interest-free loans will not be able to balance between supply and demand, as that would mean the absence of the absence of interest savings in the community and in the absence of savings there will be no investments and no development.

Third, in the order you miss the interest of governments will not be able to exercise any monetary policy because they will miss financial instruments.

Fourth, countries that apply such a system will lose the ability to attract funds from abroad, the capital of existing home will leave the local market.

Attention Mirakhor that by 1988, economists had been able to use the mechanisms of economic and financial analysis to prove the lack of modern health such criticism for the following reasons:

First, the establishment of a financial system that can be designed without a fixed rate of interest, but recent research has shown that the absence of a theory is able to provide a convincing explanation explains why there is a nominal interest rate.

Research also proved that the lack of a fixed interest on the money does not necessarily mean that after the end of the loan will not achieve the financial assets of the owner of any return.

Second, the return on capital in the Islamic economy produces actual returns achieved in the sectors that have been the investment of money.Thus, the benefit is not linked to investment returns, but the expected investment return and this is what drives people to choose the investment or savings and do not therefore need to link all of these factors benefit fixed.

Third, the absence of interest will enhance the growth of the economy will not prevent governments from owning financial instruments as experts able to design financial instruments authorities can resort to liquidity management.

Fourth: no reason to believe that in the absence of pre-defined interest will leave the domestic capital market as it can draw through the expected return on investment projects. He adds Mirakhor in a lecture precedent that the imbalance in the capitalist system based on the interest he has attracted the attention of a large number of economists, including the American Hyman Minsky, who believed that the capitalist system will suffer from the crisis permanently because of the disparity that can not be handled between the financial obligations, there are deposits which a short-term loans and assets which is about long-term investments which will create a constant state of race among banks to raise interest to attract funds that opens the door to the crisis.

Contract system

Previously the economic well-known University of Chicago, Lloyd Metzler be presented in two decades the fifth and sixth of the last century, a proposal for the establishment of an economic system to contract a substitute for the current system is based on the «value» and not «debt», stressing that this will allow to bypass crises current banking system.

In 1985 the researcher Mohsin Khan, a study among the highlights of the studies published by the IMF show the great similarity between the ideas proposed by Metzler and between Islamic finance assets.

Read more: http://dinarvets.com/forums/index.php?/topic/183287-islamic-economics-of-«magic-voodoo»-to-astound-the-west-economists/#ixzz3DODE7WYM

[MyLadiesDaddy]

BUT BUT BUT. ......... I thought ISIS had everything messed up. LOL

Thanks master Yota, and good morning.

Everything about modern banking is voodoo.

Now that's just funny.

PRAY FOR REVIVAL EVERYDAY

9-28-2014 the bewitching hour.

[yota691]

GM LGD..this is all about Islamic Banking.....  title of the article does say Global Economy......  and to astound Western Economists...  

[yota691]

Japanese bank is heading for Islamic finance

The side of the Japanese capital Tokyo

 

• •  

Friday, September 12th, 2014 - 18:28 GMT Abu Dhabi 

Abu Dhabi - Sky News Arabia

An official at the Bank of Tokyo Mitsobaisheo.av.jah (Ba.ta.am.ao) that the bank hopes to expand its activities in the field of Islamic finance in Asia and the Gulf region, becoming the first Japanese commercial bank knock this market.

And assist the efforts of traditional banks such as Ba.ta.am.ao the spread of Islamic finance and intends to French bank Societe Generale and Goldman Sachs also issued instruments.

The Ba.ta.am.ao -oho part of a group Mitsubishi UFJ Financial put a special program by the instruments in June in an effort to become the first Japanese commercial bank, is heading to Islamic activities, according to news agency Reuters.

The program will enable the unit Ba.ta.am.ao Malaysian Malaysia Berhad to collect the equivalent of 500 million dollars through the instruments of maturities of up to ten years.

Said Naoki Nishida, CEO of Bank Malaysia Berhad Ba.ta.am.ao The bank established in 2008 the internal legitimacy and since then completed the conclusion of a variety of deals Islamic finance in Malaysia, Singapore, Brunei and Indonesia.

He added: "This offers an alternative source of funding for the Bank Ba.ta.am.ao Malaysia to manage its liquidity to cope with the increased supply and growing in financing multi-currency and corresponding to Islamic law."

Nishida said that Ba.ta.am.ao grant this week commodity Murabaha deal worth 100 million dollars, for the three years to the private sector branch of the Islamic Development Bank.

Read more: http://dinarvets.com/forums/index.php?/topic/186889-japanese-bank-is-heading-for-islamic-finance/#ixzz3DZ1lgOYt

[yota691]

Wednesday, September 17th, 2014 - 13:22 GMT Abu Dhabi 
Islamic finance has caught on globally
Received versions of Islamic Sukuk in the GCC markets and also in great demand in the world lately, due to investors' thirst for new investment tools, and the pursuit of sovereign exporters and the private sector to diversify funding sources.

Read more: http://dinarvets.com/forums/index.php?/topic/186902-islamic-finance-has-caught-on-globally/#ixzz3DZRcNVi4

[yota691]

Parliamentary Finance: Japanese loan will satisfy after 30 years of Iraq's economy and serve Basra

Saturday February 28, 2015 13:38

 

 

[baghdad-where]

 

Confirmed in the parliamentary finance committee member of the importance given to the Japanese loan for Iraq to revive economic reality.

 

Haidar al-Mutlaq told all of Iraq [where] that "the loan is an interest rate of 6% and will be updating it, after 30 years of Iraq as it would serve the province of Basra, specifically the port of Khor Al-Zubair and will contribute to reviving the economic situation and trade as well as tourism reality."

 

The House of Representatives voted during its meeting today on the draft law of the letters and exchange of notes and minutes of discussions on the Japanese loan to the Republic of Iraq, signed on 16.02.2014 ".anthy 14

add this as this goes along with this...and it not a coincidence...all in the Plan...

Japan is exploring public opinion as a prelude to allow Islamic finance in its territory

Last updated Saturday, February 28 / شباط 2015; 09:58 (GMT +0400)

 

Tokyo, Japan (CNN) - In an unprecedented development at the domestic level in Japan, the agency decided to Japanese financial services of the government's public opinion poll in the possibility of allowing local financial institutions offering Islamic products in the domestic market for the first time on the country.

According to a statement of the Agency on its website, is compelling wishing to submit their opinion on the issue of progress Bmlahzthm during March / March, to present the results of consultations by the end of April / April next year.

The researcher specialized in Islamic finance, Camilla, my, have been reported in a previous article with Japan, known as the "land of the Rising Sun" and "The Land of the Samurai" is now ready to receive Islamic finance and transformation into an international center in Asia to him, adding that the state prepared the legal structure To facilitate this type of financing offers promising opportunities based on the global economy and a commitment to its people, known for its production and work .

 

 

She drew my country to the Asian country carrying promising opportunities for Islamic finance due leader in Asia and the world economic position, it is also able to be a source of attraction for the coming funds from the Middle East and the Gulf in search of investment opportunities .

According to my country, the Japanese government, as well as gatherings giant Japanese companies are known as "Keiretsu" is interested in the issuance of Islamic bonds to raise funds from the market, and the movement of the researcher specialized in Islamic finance for banking by Ullah Khan, as saying that Tokyo's interest in Islamic finance began in 2005 through the cooperation of operations with financial institutions in Malaysia and the UAE was the use of those funds to attract investment to Japan .

And were the first Japanese instruments across the company "ion" in Malaysia in 2007, and in 2010 issued instruments for "investment Namura" Foundation and was followed by the instruments of the "Toyota" cars in 2012 worth $ 88 million, before the Mitsubishi Bank issued in 2014 instruments of $ 500 million .

Tokyo and amended financial and tax laws to allow Islamic financing, and allowed tax exemption for foreign investors who invest in special purpose bonds, considered my that those steps indicate that Japan "has the necessary steps to shift to Asian tiger on Islamic Finance and Sukuk level."

Read more: http://dinarvets.com/forums/index.php?/topic/198060-parliament-will-hold-its-17th-headed-by-al-jubouri-and-the-presence-of-185-deputies-without-coalition-forces/#ixzz3T2ltt85T

[haymon]

I I I I don't read that much til after 3rd cup of java.

[Saintsfan]

Me me me either....thank you Yota