Rethinking The ISLAMIC Financial System

Rethinking The ISLAMIC Financial System

Today I am borrowing the title of the book from Nik Mahani Mohamad, published by SABA Islamic Media. I like the title of the book (and the book of course) as I want us to start thinking…. A rare action by us Muslims indeed…

Nik Mahani was a banker with Bank Islam (M) where she was involved since its conceptualization stage. The book certainly open my eyes into what has happened and what are happening right now with our ISLAMIC banking and financial system. I don’t want to write about the books or comments on it as I don’t want to sound bias and inaccurate. Please go and buy the book and read it yourself.

Instead what I like to do today is to the question below for us to ponder upon and find the answers ourselves.

In the midst of a global “Riba” financial system today, how is it that Islamic banking system can be truly be clean of “Ribawi” elements and be safe from it?

Its surely a very difficult questions for us the Layman people to answer as our knowledge is very limited in this subject. However, what we can try to do is  to question the appearance of Islamic Banking  to further understand what is really happening. For an example, why is it almost all of the “Non-Muslim related” banks in Malaysia or even abroad has Islamic banking? Isn’t it a bit weird that the non-believers now believe in “Interest Free” banking and financing system when their fundamental believe is that interest is needed to make profit.

How about the term Profit rate? Is it different from Interest rate or it is the same element that is being called a different name. How do Islamic Banks determine the profit rate they want to offer to customers, and more interestingly why is it seems like following the BLR rate fluctuation. Is it being pegged to BLR and if yes why.

Too many questions without any answers. Yes it was deliberate for us to start thinking….. read and learn…..

Surely many of our distinguished Scholars are in the committee of these Banks with ISLAMIC practice and they would have known and designed the best for us. There is no intention to question them but rather questions for us to answer.

May Allah guides us to the right path.