Setting up Islamic banks from Interest Money

[Pracs]

Just wanted your comments on this issue

In the last couple of years we in the UAE have witnessed three financial institutions convert from conventional banking to 'islamic shariah compliant' banking (with a complete shariah board and the works).

Moreover a lot of MNC banks like Citicorp, Standard Charetered and HSBC run whole Shariah compliant units, the capital still flows in from 'Income earned through Interest'

My question is it a 'halal' move since all their capital appreciation and assets includes a substantial amount of 'usuary' or 'interest' money ?



"Allah does not change the state of people unless they change what is within themselves" Quran 1311

[smraza]

Well Pracs,
Interesting issue raised by you,
dont u think it is similar to the following case
Suppose i have earned Rs.500,000/- from halal sources and Rs.500,000/- from a bank robbery / cheating / etc...
now i m going to invest that 1 mn. to establish a charitable organization. That organization will be based on haram income and then how can the activities of that organization be halal.... although that organization is in the favor of society.
Now coming to the further contributions by the general public and earning income from those contributions..... Will that be halal???
If we say to the extent of amount of robbery it is haram and rest is halal, then who is going to measure if the organization earns the income of Rs.100,000/- ???? That how much portion is halal and haram.
It is very debatable issue.

SMR

[Pracs]

Meaning its not completel 'halal'...!

"Allah does not change the state of people unless they change what is within themselves" Quran 1311

[Sarfaraz]

In my view it is HARAM
according to the concept of TAQWA

There is a will. There is a way.
www.sarfraz.cjb.net
0333-4502662

[smraza]

<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>
Meaning its not completel 'halal'...!

"Allah does not change the state of people unless they change what is within themselves" Quran 1311
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
I am not the mulla so i cant give fatwa on that <img src=icon_smile.gif border=0 align=middle>
But I think, later, if somebody invests in the bank, and that investment is totally halal and bank's current mode of financing is islamic, and that person gets some return on his investment, i think for that person the return got by him can be halal.... I think so...


SMR

[Pracs]

If we look it at this way,. in today's world would any kind of capital be'halal'all together and not infested with interest somehow ? Going by the same line of thought, every thing the TCP (Trade coeporation of Pakistan) procures for the nation (e.g seeds, wheat etc.) is ínterest infested, since the Govt. of Pakistan pays interest to local as well as international lenders, the Govt. of Pakistan throught the coffers of the 'State Bank of Pakistan' is also a lender and thereby earns interest !



"Allah does not change the state of people unless they change what is within themselves" Quran 1311