When u sell someone with a profit, u profit at his expense cuz u bought it abt 10-20% less.. and he bought it for a higher price right? So I thot this was also not ok in Islamic terms..
I've not pulled ur nerves I guess..
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smallville wrote:We can see this getting over-subscribed
Chinwi wrote:මොකටද ගහ වටේ කැරකෙන්නෙ ?
මොකවත් නිසා නෙවි මෙහි තියෙන්නෙ M ෆැක්ටර් හෙවත් මුස්ලිම් අය ගේ මිලදීගැනීම. ඉස්ලාම් දහමට අනුව කෙරෙන බැංකුවක් බැවින් එම ආකර්ශනය සාධාරනයි.
K.Haputantri wrote:
Prohibition of taking interest in Islam may be a social requirement during that period of time when high rates were charged by money lenders.
yellow knife wrote:
Now dont tell me that Islamic banks only make profit. Learn about Islamic Bank of Baharain.
yellow knife wrote:One problem I really see in this is its an attempt to overcome some obstacles of conventional banking system.
K.Haputantri wrote:yellow knife wrote:One problem I really see in this is its an attempt to overcome some obstacles of conventional banking system.
? Can you elaborate on obstacles of conventional banking.
[quote="Depositors are not depositing with the intention of getting interest but profit.
There is a clear difference between interest and profit than some just think they are both same.
Remember Islamic Financial Instruments carry the term Profit/Loss bearing.
Jiggysaurus wrote:yellow knife wrote:
Now dont tell me that Islamic banks only make profit. Learn about Islamic Bank of Baharain.
Why go to Bahrain? Even the wonderful "holy" Amana Bank is making losses upto September of 2013. So in theory those who have savings (or whatever Arabic nonsense term used) account should get less than what they deposited in 2013. Deposit 100 on Jan 1 2013 in Amana Bank and you will get 90 on Dec 31 2013 if the bank losses continue (this is why I call this IPO a seetu scheme.
Last edited by Zaiban on Fri Dec 13, 2013 5:06 pm; edited 1 time in total
Zaiban wrote: if not keep ur rude... barbaric... pre-historic ...un civilized....comments to ur self....
... do always have to cll ppl different from u by derogatory names
Jiggysaurus wrote:Zaiban wrote: if not keep ur rude... barbaric... pre-historic ...un civilized....comments to ur self....
... do always have to cll ppl different from u by derogatory names
When talking about a barbaric, pre-historic, uncivilized cult or belief system the members of said cult or belief system will get their feelings hurt and rant and rave (as we see in this thread).
If you can't handle criticism and questions about dangerous (whatever) and stone age belief systems and their related IPOs then you should stick to Afghan and Saudi forums where no one is allowed to question your (whatever) and belief system.
yellow knife wrote:
Suppose I ve deposited 1 Million in The Finance PLC, still i may get the agreed interest even though the company is making losses.
Lets assume that same 1 Million i deposited under Islamic Finance in return I may get lesser value than I ve deposited when the institute is making losses.
Who will willingly go for losses irrespective of his religious faith.
Now dont tell me that Islamic banks only make profit. Learn about Islamic Bank of Baharain.
I believe that the first day information of successful subscription rate is just a marketing game.
Zaiban wrote:
thre is a manner u say stuff... not just wag ur tongue and bark like a dog... i see lots of ppl disagreeing wit islamic finance in this forum.. but they speak respectfully...
Jiggysaurus wrote:Zaiban wrote:
thre is a manner u say stuff... not just wag ur tongue and bark like a dog... i see lots of ppl disagreeing wit islamic finance in this forum.. but they speak respectfully...
Can I oink like a pig?
Why should I or anyone else speak respectfully to a bunch of loonies or crackpots who don't respect other religions? Just look at the posts in this thread done by you, pandithaya, Hanoi man and glwking (personal attacks and attempts to impose censorship)
If your (whatever) wants respect kindly make sure that your peeples respect other religions in turn.
Zaiban wrote:
E.g:- in conventional banking...for example u want Rs. 1 million to start a business ... the bank gives u Rs. 1 million and u have to pay them 20% interest annually...whether u make a profit or not..
in Islamic banking... u want money to start a business.....the bank will come in as an investor and share a percentage of your profits... when you can pay of the bank's capital.. u can stop paying them a % of your profits...
this is just one structure...
alternately lets say u want to buy a house.....
conventionally gives u a loan and u pay an interest.... until u pay off capital.... even if the house doesn't exist.... get damaged... destroyed etc...
in islamic banking system....the bank jointly buys a house with u... and u pay them a rental in proportion to their ownership of the house.... if house gets destroyed ....both parties lose...
thereby if u see something common in the islamic system is tht it shares the burden of losses and shares success of profits... thus not bogging down the customer to pay interest no matter wut the economic situation in his business or house is....
in conventional u don't need an asset or any kind of economic development to take place... u just pay me my interest like shylock wants it... no matter wut happens??? which system is fairer and just... make ur own decision....
smallville wrote:Zaiban wrote:
E.g:- in conventional banking...for example u want Rs. 1 million to start a business ... the bank gives u Rs. 1 million and u have to pay them 20% interest annually...whether u make a profit or not..
in Islamic banking... u want money to start a business.....the bank will come in as an investor and share a percentage of your profits... when you can pay of the bank's capital.. u can stop paying them a % of your profits...
this is just one structure...
alternately lets say u want to buy a house.....
conventionally gives u a loan and u pay an interest.... until u pay off capital.... even if the house doesn't exist.... get damaged... destroyed etc...
in islamic banking system....the bank jointly buys a house with u... and u pay them a rental in proportion to their ownership of the house.... if house gets destroyed ....both parties lose...
thereby if u see something common in the islamic system is tht it shares the burden of losses and shares success of profits... thus not bogging down the customer to pay interest no matter wut the economic situation in his business or house is....
in conventional u don't need an asset or any kind of economic development to take place... u just pay me my interest like shylock wants it... no matter wut happens??? which system is fairer and just... make ur own decision....
The way u put this, Islamic banking cares about the customer.. So it has an advantage when ppl's emotions are attached to it.
But lets think deeply how a financial system works, they lend money for a time period and what they get in return is what u pay in that period as interest. That cuts their costs of operating the bank. Wages for employees, expenses of maintaining the building, vehicles, etc.. will also have to be borne by the bank.
Than they take deposits of your money upon agreeable rate per year. That's what you get in return for your investment. Banks invest your money in other instruments that attract more interest than they pay you (may be riskier) in order for them to pay you, your promised interest.
But if Islamic banking is all about sharing the profits or take your burden out, then if an entrepreneur's quest goes wrong, the banks losses everything. And if bank does a lot of investments like this, the bank itself may have a clear path of bankruptcy.
Needless to say, the bank may take up projects after careful inspection and even supervision would go to make sure the profitability of the business its vested interested in but who can say things might not go wrong? Who can say things that happen to CIFL, Vanik cannot happen to any other entity. The ppl inside can lead the entities to the ground or heaven.. Its all in the ppl who manage the entity..
Yes in conventional banking, you are expected to pay back every penny u owned them regardless of your state of business, u gotta pay.. And Islamic system bears the loss. But both systems can go wrong..
My opinion is that Islamic view is in good faith but doesn't it hinder the sustainability of the bank? For example, if some projects go wrong, it can negatively effect and these effects can even be irreversible. Yes it happen to both systems but the former has more law enforcement where the ppl who default payments can get sued, asked to pay up by whatever means. And these actions might fear others who purposely take loans an default while the latter wipes it off as a loss.
In conclusion, Islamic system is in good faith but I have a doubt in long term sustainability. Sustainability is what we all want regardless of the race, ethnicity, religion, et..... Especially with Islamic banking, the bank needs to stay with the ppl.. What if the bank's situation worse due to the reasons we discussed?
Zaiban wrote:
Prophet Muhammad (Peace be upon him) said
“The strong is not the one who overcomes the people by his strength, but the strong is the one who controls himself while in anger.”(Bukhari :: Book 8 :: Volume 73 :: Hadith 135)
............ thus please forgive me dear jiggy and everyone else if I have hurt your feelings
smallville wrote:Jiggy, I'm pissed off with your attitude now.. U need to learn how to live in harmony in a multi-cultural forum where we exchange our ideas, beliefs..
Put yourself in the shoes of a person u accuse. You would not give up your beliefs easily for whatever others say, would you? Similarly, others would not and counter argue too..
If we dont like our races, religions, etc be questioned for old, myth or whatever the ppl can bring in to throw stones, we certainly should not hurt the beliefs of other races, religions as well. If we lose our temper in answering them, they would reply in same tone and the discussions can get ugly as it proceeds.
So when discussions of sensitive nature go on, be mindful of not letting ur anger proceeds your judgement.
Ppl from many cultures, races, ethnicity represent this forum. If we dont like the attitudes, views of others, we still have no choice but to bear it. We should think 10 times before commenting and press that "send" button..
I'd also iterate that, constructive criticism towards a discussion is healthy and will be allowed in good faith to explore more of the subject being discussed but zero tolerance for hate speech or hatred.
Cool are we??
smallville wrote:Jiggy, I'm pissed off with your attitude now.. U need to learn how to live in harmony in a multi-cultural forum where we exchange our ideas, beliefs..
Put yourself in the shoes of a person u accuse. You would not give up your beliefs easily for whatever others say, would you? Similarly, others would not and counter argue too..
If we dont like our races, religions, etc be questioned for old, myth or whatever the ppl can bring in to throw stones, we certainly should not hurt the beliefs of other races, religions as well. If we lose our temper in answering them, they would reply in same tone and the discussions can get ugly as it proceeds.
So when discussions of sensitive nature go on, be mindful of not letting ur anger proceeds your judgement.
Ppl from many cultures, races, ethnicity represent this forum. If we dont like the attitudes, views of others, we still have no choice but to bear it. We should think 10 times before commenting and press that "send" button..
I'd also iterate that, constructive criticism towards a discussion is healthy and will be allowed in good faith to explore more of the subject being discussed but zero tolerance for hate speech or hatred.
Cool are we??
Jiggysaurus wrote:smallville wrote:Jiggy, I'm pissed off with your attitude now.. U need to learn how to live in harmony in a multi-cultural forum where we exchange our ideas, beliefs..
Put yourself in the shoes of a person u accuse. You would not give up your beliefs easily for whatever others say, would you? Similarly, others would not and counter argue too..
If we dont like our races, religions, etc be questioned for old, myth or whatever the ppl can bring in to throw stones, we certainly should not hurt the beliefs of other races, religions as well. If we lose our temper in answering them, they would reply in same tone and the discussions can get ugly as it proceeds.
So when discussions of sensitive nature go on, be mindful of not letting ur anger proceeds your judgement.
Ppl from many cultures, races, ethnicity represent this forum. If we dont like the attitudes, views of others, we still have no choice but to bear it. We should think 10 times before commenting and press that "send" button..
I'd also iterate that, constructive criticism towards a discussion is healthy and will be allowed in good faith to explore more of the subject being discussed but zero tolerance for hate speech or hatred.
Cool are we??
A comment was made about the single most perfect man in history, i'm countering that comment.
If the post about perfection is deleted i'll be happy to delete my post countering the perfection argument.
But that is beside the point of this thread which is to highlight a dangerous IPO.
It's Zainab's posts that are dragging the thread in a different way and I'm merely responding.
Zaiban wrote:
this is my opinion...
if u don't think so... don't subscribe to it...
just move on...
Zaiban wrote:
a higher cost of financing... covers situations of non payment.... or destruction of assets... further businesses and customers payment ability is scrutinized more closely...
Islamic financing is a tad more expensive in order to maintain profitability
further.... takaful or islamic insurance is also there in worst case scenarios...
finally i dont think MR would recommend islamic finance in last years budget speech.... if there were serious sustainability issues...
npp wrote:still doesn't explain why Amana Bank deserves a premium to other conventional banks
Zaiban wrote:npp wrote:still doesn't explain why Amana Bank deserves a premium to other conventional banks
an IPO... is an offering... u don't like it... don't accept it....
I think it is a bit too high my self... so i ain't subscribing...
i kno this management and company inside out.... my take on the IPO is tht... this share is not a good share to trade... however on a 5 to 10 year horizon... i am expecting an above average return... u just gotta hold it.... don't expect an LHCL price hike overnight ....
doesn't mean ppl shud insult other ppl'z religions... like wut jiggy is doing....
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