Islamic Finance/Banking

[siren]

It is not upto a Shiikh to tell you what's Xaraam and what's not! Just a thought!

[Executive]

siren

Everyone may not know the deen as well as you. I only found out recently that it is Haram to work in Banks.

They didn't know, Most somalis didn't know. Allah doesnt punish anyone because of Ignorance.

[RebelLion]

It's haram to work in banks? How so?

[Executive]

It's haram to work in banks? How so?

Its haram because you support a institution which is based on Riba.

"The Messenger of Allaah cursed the one who consumes riba (interest or usury), the one who gives it, the one who writes it down and the one who witnesses it. He said: 'All of them are equal in sin.'" (Reported by Muslim, may Allaah have mercy on him, in his Saheeh, no. 1598

[somalinetguy]

a question about interest : Is interest (linked to inflation) haram ????

for example someone took a loan of 1000 shilling somali in 1978 and fast forward 30 years today and the person want to repay the loan .
so should the person pay the exact amount of 1000 shillings somali (which worthless) or pay the intrinsic value of 1000 shillings at the time when the loan was taken (1978) if the answer is the latter then the interest linked to inflation come to play

[RebelLion]

Executive

Doesn't it depend on what you're doing for the bank, interest is not the only function of banks

I don't think it's haram to work as an employee in a bank, especially if you are just a bank teller.

Do not just say something is haram without bringing supporting sources from scholars.

[siren]

siren

Everyone may not know the deen as well as you. I only found out recently that it is Haram to work in Banks.

They didn't know, Most somalis didn't know. Allah doesnt punish anyone because of Ignorance.

It was upto them to learn, you just can't say "Alla doesn't punish anyone because of ignorance"! If each one of us try to use that as an excuse, then we should all get ready to go Heaven!

[Executive]

somalinetguy


Good question. If you borrow 1000 shilling for anyone for a period of 30 years you have to pay back the same amount in the same currency.


And also what you have to take into account is that islamic economy is a real eceonmy, Nothing is based on speculation, every dollar printed should have a fixed asset secured for it, you would not have an much inflation....

you can read what the scholar say here.... http://www.islamqa.com/en/ref/12541/inflation



RebelLion

You are supporting/cooperating with a organisation that deals with interest. Therefore it is haram. Read this brother. http://www.islamqa.com/en/ref/21113/bank

http://www.islamqa.com/en/ref/21113/bank

[Executive]

It was upto them to learn, you just can't say "Alla doesn't punish anyone because of ignorance"! If each one of us try to use that as an excuse, then we should all get ready to go Heaven!

Excuse? You can't lie to allah, He knows what you know,

And in Islam you are not punished for what you dont know.

[somalinetguy]

somalinetguy


Good question. If you borrow 1000 shilling for anyone for a period of 30 years you have to pay back the same amount in the same currency.


And also what you have to take into account is that islamic economy is a real eceonmy, Nothing is based on speculation, every dollar printed should have a fixed asset secured for it, you would not have an much inflation....

you can read what the scholar say here.... http://www.islamqa.com/en/ref/12541/inflation

thanks for the link but it is very harsh and really dishonest to repay the exact amount you borrowed if the currency is worthless at the time of repayment.
borrowing currency and borrowing commodities(food , gold ) is different , commodities value stay the same whereas the the value of a currency can change dramatically day from day , that is the reason why trading commodities is accepted in islam but not currency trading (speculation) is not accepted .

[*Nobleman*]

salam, regarding the inflation question i asked a sheikh in a conference. Cos i had the same problem with student loans, which are tied to the rate of inflation. He said this was also haram, silver for silver, gold for gold etc. So repay exactley what u received.

[AbdiWahab252]

The Somali National bank was HARAM

It was the only bank where you had to bribe someone to get your $$ out of it.

The Somali banking system was corrupt in the 1980s. Your deposits were hard to access. There was lack of liquidity. It was Qabiil ridden and you had to bribe a Darood official to get a LOC (Letter of Credit) to do international commerce.

My parents used to kick back 5% to get money out of their USD account which the UN agencies used to deposit the funds into each year.

Nobleman,

I contest the inflation issue. There is more volatility when you use a FIAT currency than a barter system. For example, you borrow $100 from me today and you agree to pay me next year the same $100 but inflation (assuming a 5% rate) gives me a negative value of $95.

But if we were in a barter system, and you borrowed $100 worth of wheat and you paid me $100 worth of wheat which I am more likely to consume then its a more even trade than using currency.