Islamic Banking Information

Washington Post Article on Islamic Mortgage Lending in the USA

May 17, 2008 – 5:18 pm
The Washington Post recently did an interesting piece on the growth of Islamic mortgage lending in the United States. Some excerpts from the article: The mortgage industry may be in meltdown, but at least one class of lender appears to be flourishing: Islamic finance companies that offer Muslim home buyers alternative arrangements such as lease-to-own deals so they can avoid making the sort of interest payments that many believe their religion forbids. Officials at Guidance Residential, a Reston company that has financed more than 5,000 home purchases since it began in 2002, said the company is having its best year yet, with business up 7 percent in the first quarter of 2008 from the first quarter of 2007. At University Islamic Financial, which began in Ann Arbor, Mich., and expanded its operations to Maryland, Virginia and five other states last year, officials said the number of home-financing applications quadrupled from last March to this ...

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Anyone ‘can opt for an Islamic mortgage if they wish’

March 24, 2008 – 5:24 am
Via moneyhighstreet.com, March 16 2008: There is nothing to stop anyone from opting for an Islamic mortgage if they feel it is the best product available to them, an industry expert has said. Emile Abu-Shakra, media relations manager at Lloyds TSB, explained that the popularity of Islamic financial products had increased in recent years. He said that available Islamic financial products meet Muslim rules but could be used by anyone who felt they were appropriate. "These products are designed with Muslims in mind and are designed to meet the needs of Islamic principles but there is absolutely nothing to stop anybody else taking an Islamic mortgage or Islamic current account," Mr Abu-Shakra added. "I don't think there will be an effort to encourage others to take them out - the fact is that they are designed for a particular market but anyone who thinks they [Islamic mortgages] fulfil their needs can have them." Late in 2007, ...

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Islamic Financing Spurring Growth in London

March 3, 2008 – 9:57 pm
via IslamOnline.net: CAIRO — A £1bn Shari`ah- compliant loan will turn a landmark military property at the heart of London into a luxurious residential compound, a groundbreaking project for Islamic finance dealings with real estate in Britain. "This is the most important redevelopment scheme in London in the last 50 years," Christian Candy, co-owner and founder of the property developer firm (CPC), told the Guardian on Monday, March 3. Candy's firm will use a £1.3bn loan from the Qatari Investment Fund to transform the historic Chelsea barracks in central London into a residential compound. Under the scheme, the 12.8 acre of concrete army buildings in the ritzy Chelsea neighborhood will turn into luxury flats, a hotel and health spas, with the help of Qatari Diar, the giant real estate company and the property arm of the fund. The 3.5-year-loan will comply with Islamic finance rules as it is structured in an Ijara structure, ...

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Islamic Banking Industry Showing Promising Signs of Sustainable Growth

February 22, 2008 – 5:30 pm
Via Pakistan's Online News Network today: KARACHI: Governor State Bank of Pakistan Dr. Shamshad Akhtar has said that Islamic Banking industry is showing promising signs of sustainable growth. She expressed these views while briefing the media while inaugurating Meezan Bank’s 100th branch here on Thursday. She said that the beauty of Islamic finance system is that if it is adapted in letter and spirit it is the most transparent and ethical system of finance. She said that Islamic finance system has a great potential to meet the financial requirements of society at large and would continue to grow its market share exponentially in the years to come in Pakistan... Speaking on the occasion Mr. Irfan Siddiqui, President and CEO of Meezan Bank said that Meezan Bank, the first and largest Islamic Bank in Pakistan is committed to fulfilling its vision of establishing Islamic Banking as banking of first choice. He said that Meezan ...

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Islamic banks ‘facing major financial risks’

January 31, 2008 – 7:18 pm
Via Manama, Bahrain, Gulf Daily News: MANAMA: Islamic banks face specific categories of financial risks compared to conventional banks, says an industry report. According to research by Moody's Investors Services the most critical risks are entanglement and displaced commercial risks. "The first one reflects the fact that each Sharia-compliant transaction tends to include credit, market and operational risks, all of which we need to understand to better fine-tune our analysis," the report by the financial research and analysis group said. "Islamic banks are improving the way they identify, measure, control and mitigate those risks, as balance-sheet and capital management is becoming a critical field where investments in technology and human talent are increasing" "Beyond financial risks, Islamic banks are also subject to other forms of risks, specific to their business models." It argues these are reputation risks and the risks of being perceived as not sufficiently Sharia-compliant. "This has a powerful disciplinary effect, but could become ...

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Islamic Banking: Is It Really Kosher?

October 11, 2007 – 3:17 pm
By Aaron MacLean From the March/April 2007 Issue of "The American" Muslim scholars say the Qur’an prohibits collecting interest on loans. But many banks, both global and local, have found clever ways to meet religious strictures. It’s a system that may be hypocritical, but also profitable. The coverage can be a little bit breathless: “La finance Islamique en plein boom,” Le Figaro reported in September. Yes, Islamic banking, structured along the lines that religion decrees, is in full boom. But is it really banking? And is it really kosher? Share This

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Q&A: Islamic Finance

October 1, 2007 – 5:10 pm
Reprinted from BBC Online: The UK's first Islamic Child Trust Fund(CTF) has been launched. There are now a range of products - including current accounts, mortgages and even personal loans - which comply with Sharia Islamic law. BBC News examines Islamic finance and how it works. Share This

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Introduction to Takaful

September 5, 2007 – 9:23 am
The concept of takaful, or Islamic insurance, where resources are pooled to help the needy does not contradict Shariah. The concept is in line with the principles of compensation and shared responsibilities among the community. It is not a new concept, in fact it had been practised by the Muhajrin of Mecca and the Ansar of Medina following the hijra of the Prophet over 1400 years ago. It is generally accepted by Muslim Jurists that the operation of conventional insurance does not conform to the rules and requirements of Shariah. Share This

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Insurance in Islam

August 1, 2007 – 10:39 am
It is a Muslim’s belief that any misfortune that befalls him, that results in the loss of life or belongings, is by the will of the Almighty Allah. At the same time, we are also taught to take positive steps to avoid or reduce the possibility of these misfortunes as indicated by the hadith: “The Prophet (s.a.w.) told a Bedouin who left his camel untied to the will of Allah: Tie your camel first, then put your trust in Allah” (Narrated by at-Tirmizi and Ibn Majah) Nowadays, insurance is seen as a means of action undertaken to reduce the risk of loss due to misfortunes. An alternative form of cover a Muslim can avail himself against the consequences of catastrophe and disaster is by participating in Takaful schemes. It is a scheme based on solidarity, shared responsibility and brotherhood among members. Participants of this scheme all agree to mutually help each other by ...

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Islamic Banking Concepts

July 3, 2007 – 11:15 am
Are you confused by the Arabic terms used in Islamic banking and finance? Unfamiliar with the various types of financial products offered? This glossary of Islamic banking concepts may help: Share This

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