Sunday, October 23, 2011 - 4:19 PM

Islamic Sharia Law View Of Deposit Accounts

http://news.yahoo.com/libyas-transitional-leader-declares-liberation-155513082.html

Abdul-Jalil said new banks would be set up to follow the Islamic banking system, which bans charging interest. For the time being, he said interest would be canceled from any personal loans already taken out less than 10,000 Libyan dinars (about $7,500).

Mike276 posts since
Feb 22, 2010
Rep Points: 704

1. Monday, October 24, 2011 - 2:27 AM

Mike,

Maybe the reason why banks don't pay any interest for deposits anymore is because they're all run by Muslims. Who knew!

lou353 posts since
Aug 3, 2010
Rep Points: 1,991

2. Monday, October 24, 2011 - 4:11 AM

I hadn't even thought of that Lou. Interesting thought. I wonder how an Islamic banking system reacts to an occupy wallstreet movement. Or, how it would respond to anyone who finds himself unable to repay his interest free loan. Or how it responds to someone declaring bankruptcy. What do u think an Islamic banking systems penalty looks like?

Mike276 posts since
Feb 22, 2010
Rep Points: 704

3. Monday, October 24, 2011 - 4:38 AM

"What do u think an Islamic banking systems penalty looks like?"

They cut off the hand used to sign the loan docs. Not many people would be taking early withdrawals from their CDs if this was the EWP.

lou353 posts since
Aug 3, 2010
Rep Points: 1,991

4. Monday, October 24, 2011 - 7:40 AM

I just noticed a Muslim credit union here in the U.S.

It's Pioneer Muslim Credit Union and it's located in Houston and Austin, TX.

Not only is it paying interest, but they're listing some very high rates (2.53% apy for the share savings).

According to their facts sheet, their field of membership includes:

Any person representing Shia Imami Ismaili Muslim belong to Momin Community from India, Gujarat Sidhpur district

KenBDG5,153 posts since
Nov 29, 2009
Rep Points: 117,134

5. Monday, October 24, 2011 - 12:33 PM

I wonder if they allow religious conversions in order to qualify for membership.

lou353 posts since
Aug 3, 2010
Rep Points: 1,991

6. Monday, October 24, 2011 - 2:01 PM

I'd rather pay debit card fees and earn zero interest than do that, Lou.

Mike276 posts since
Feb 22, 2010
Rep Points: 704

7. Monday, October 24, 2011 - 2:03 PM

Ken, do you have any way of finding out why they can pay interest? I wonder why they don't feel compelled to follow the same format as the Libyan framework.

Mike276 posts since
Feb 22, 2010
Rep Points: 704

8. Monday, October 24, 2011 - 8:07 PM

Who cares? That's a religious issue and has nothing to do with this site. We get enough of that elsewhere.

Shorebreak1,316 posts since
Apr 6, 2010
Rep Points: 4,981