Either type of banking ends with the bankers controlling the businesses. The islamic banking you advocate allows those bankers to take part of the business in lieu of interest. There is no "free ride" either way.
islamic banking you advocate allows those bankers to take part of the business in lieu of interest
I cannot support any system that believes women are second class citizens.....
Islamic banks apparent non-charging of interest is semantics at best. They charge an up front borrowing fee which is based on the same overall mathematics that would go into paying an interest rate and, in many, MNAY ways is more predatory than a flat interest rate would ever be.If the bank does not charge interest or fees on its loans, where do they get the money to pay the bank's expenses such as payroll, electricity, etc.?
For example, most states have laws on the books that grant borrowers the opportunity to reduce the amount of interest they will pay on a loan through paying it off early, or making larger than the minimum monthly payments. In non-interest lending, it doesn't matter if you pay off a 36 month loan in a year and half, because you paid the interest... ERRRR, lending fee up front and it was based entirely off of nominal interest that would have been paid over a 36 month lending period.
If the bank does not charge interest or fees on its loans, where do they get the money to pay the bank's expenses such as payroll, electricity, etc.?
the best option would be to have local taxes pay for employee salaries and operating bills. This would be the best way to do it.It seems that this would heavily disadvantage lightly populated areas (such as my town) and poor areas who are living on the edge without new taxes. Further, do you think that Americans are ready to have the government own and run banks? They are pretty upset now with just about any business the government decides to run, even if it's only local. And how would financial centers like New York survive? With the huge number of banks in that one small area, the taxes would be astronomical.
With zero interest local banking, the community would not be subject to ever expanding debt, predatory lending, seizures, debt collectors, ruined credit, and a general enslavement and economic oppression.How does Islam deal with people who don't pay their debts? I would think seizures, debt collectors and ruined credit would be a part of any system. Or would all the bad debts be paid by the taxpayers? Surely, Islamic as well as American, banks would be able to refuse making loans?
They don't believe in women as second class citizens, they hold them higher because the keep them covered and not paraded around like tramps. They believe in modesty,
Originally posted by seeker1963
reply to post by Utopia2012
Sorry! As much sense as it makes, I cannot support any system that believes women are second class citizens.....