On Thu, Oct 8, 2009 at 1:54 PM, Kiran K Karthikeyan < [email protected]> wrote:
> > > I'm aware of co-existence to the extent that they are available, but are > they also covered by regulations, deposit insurance etc.? Are there for > example, different capital adequacy norms for Islamic banking? And as I > understand it, any form of insurance is against Shari'a. Quick and dirty response: Malaysia, UAE, and Pakistan are at least three countries in which Shariat banking products and services are covered by the same regulator as traditional banking (though of course different arms). As to whether capital adequacy, despoit insurance, etc. are present or have different norms; I am unable to inform you. Insurance is not explicitly forbidden in the Koran or Hadith; but various qazis have issued fatwas that it is a form of gambling and therefore haram. Structuring a guarantee to pay deposits that does not involve any chance is an interesting exercise for the TamBrahms, Jews and Marwaris who are typically CEOs of Islamic Banks. [1] [1] Only mild exaggeration. The Islamic Banking division of my former employer was run by a TamBrahm. The most senior Muslims were the advisory council who passed judgement on whether the products devised were halal or not. -- Aadisht Khanna Address for mailing lists: [email protected] Personal address: [email protected]
