Islam banking intrest rate 3.60%

[belg]

my Kasikorn 18 months step-up was finished so I was looking for something new or better...

They only offer 2.55% and you have ot lock it for 2 years... Bit too low and too long in my opinion.

So I went to compare and saw some Islam Bank (in Paradise) that offered 3.60%

would you trust, as a non moslim, to put your savings in an Islam bank overhere ?

[i claudius]

no

[Halfaboy]

Have a look at their non performing loans !

[simple1]

Islamic Bank of Thailand is a state enterprise under the Ministry of Finance. It is rated BBB on long term outlook which is the same as Bank of Ayudhya & Kasikorn by Fitch. It has recently announced a good turnaround in its net profit performance.

http://in.reuters.com/article/2014/02/05/islamic-finance-thailand-idINL5N0LA0A120140205

[olddoc]

Do "Islamic Banks" actually pay "interest" ?

[KittenKong]

Do "Islamic Banks" actually pay "interest" ?

No, they share profits. This is permitted under sharia rules. The figure advertised will be the "expected profit sharing rate" and in the UK such banks have a get-out clause that allows the customer to withdraw early if the "expected" rate is not met. Not sure whether the same applies here.

[ezzra]

The real question that should be asked here is, dose the Islamic bank fund, support, facilitate or enable

any kind of monetary assistant to radical groups, i.e. so called "freedom fighters" of any descriptions?

as far as I know, the answer will most likely be YES, judging from other Islamic banks and financial

institutions in other places around the world, namely the middle east, north Africa that have close ties

and affiliations with radical extremist groups...

So, would I put my money with them? not even for 100% interests return...

[Naam]

The real question that should be asked here is, dose the Islamic bank fund, support, facilitate or enable

any kind of monetary assistant to radical groups, i.e. so called "freedom fighters" of any descriptions?

as far as I know, the answer will most likely be YES, judging from other Islamic banks and financial

institutions in other places around the world, namely the middle east, north Africa that have close ties

and affiliations with radical extremist groups...

So, would I put my money with them? not even for 100% interests return...

[i claudius]

Do "Islamic Banks" actually pay "interest" ?

No, they share profits. This is permitted under sharia rules. The figure advertised will be the "expected profit sharing rate" and in the UK such banks have a get-out clause that allows the customer to withdraw early if the "expected" rate is not met. Not sure whether the same applies here.

Their interpretation of interest and profit sharing is a bit like being a little bit pregnant.

[simple1]

The real question that should be asked here is, dose the Islamic bank fund, support, facilitate or enable any kind of monetary assistant to radical groups, i.e. so called "freedom fighters" of any descriptions? as far as I know, the answer will most likely be YES, judging from other Islamic banks and financial institutions in other places around the world, namely the middle east, north Africa that have close ties and affiliations with radical extremist groups...

So, would I put my money with them? not even for 100% interests return...

Using traditonal banks would leave an electronic trace, but banks have been used & low and behold some Western banks have been utilised in the transactions such as HSBC, despite prior warnings from Western security agencies. As you know HSBC was fined, perhaps equivaent to one quarter net profit for money laudering activities. Other Western banks include Lloyds and Barclays, not sure of the status of legal actions, including a number of other Western banks for money laudering for drug cartels and so on that often leads to funding arms/activities for terrorist organisatiions

It is alleged Islamic terror groups use the HAWALA system for the obvious reasons that no money is wired, no names are taken, no account numbers used, and no records kept. However, it is stated that the largest funding mechanism for Islamic extrements is through Islamic charities those funds are skimmed off.

Although a bit out of date, funding for Islamic terrorism, regulatory challenges etc is covered extensively at:

http://www.e-ir.info/2011/10/07/stopping-the-islamic-terrorist-financing-machine/

[chiang mai]

Their NPL's are seriously bad, no I wouldn't.

[sms747]

Put my money in an Islamic bank, no I would rather burn it.

[givenall]

The real question that should be asked here is, dose the Islamic bank fund, support, facilitate or enable

any kind of monetary assistant to radical groups, i.e. so called "freedom fighters" of any descriptions?

as far as I know, the answer will most likely be YES, judging from other Islamic banks and financial

institutions in other places around the world, namely the middle east, north Africa that have close ties

and affiliations with radical extremist groups...

So, would I put my money with them? not even for 100% interests return...

alt=cheesy.gif width=32 height=20>

So does Bank of America

[Pib]

would you trust, as a non moslim, to put your savings in an Islam bank overhere ?

Since around 95% of Thailand is Buddhist, I guess a person could say Bangkok Bank, K-Bank, SCB, most banks in Thailand are Buddhist banks. Would you trust, as a non-Buddhist, to put your savings in a Buddhist bank overhere? That answer is yes for most of us since we have accounts in Thai banks.

[sms747]

But Thai banks do not bring religion into it, there is no Buddhist bank, unlike the Islamic bank

[Naam]

But Thai banks do not bring religion into it, there is no Buddhist bank, unlike the Islamic bank

what religion do Islamic banks "bring into it" pray tell?

[dave_boo]

But Thai banks do not bring religion into it, there is no Buddhist bank, unlike the Islamic bank

what religion do Islamic banks "bring into it" pray tell?

Most of the time I value your comments (even though I don't say it much), but your attempts at being snarky fall on its face. There's a whole history and explanation of what it takes to become sharia certified (an "Islamic" financial institution) here. Note the heavy emphasis on "Sharia" and Islam.

“Shariah Board The Shari’ah Committee (Shari’ah Control and Fatwa Body that is independent of the bank) consists of learned and honest Shari’ah scholars. The Committee is responsible for expanding the Shari’ah provisions with respect to the issues that are put forward before it and to control the activities of the Division and the branches pursuant to the provisions of Islamic Shari’ah. The committee carries out its activities in total independence. The Islamic Banking Services Division is committed to the application of the fatwas and decisions passed by the Committee”

[IMA_FARANG]

Do "Islamic Banks" actually pay "interest" ?

---------------

From my experience in Saudi Arabia ... no they don't pay "interest".

Under a strict interpretation of Moslem law, paying "interest" on a loan or on a bank account is Usury and is illegal.

That's because under traditional Capitalist rules you must pay the interest on a loan whether the loan fails or the loan succeeds.

What they have instead is a agreed upon partnership between the bank as the loaner, and the borrower.

Since they are partners in the loan, they officially have an agreed shared interest in the profits of the loan.

It may not really work that way in practice, but that is the theory.

Requiring a borrower to pay "interest" if they can not repay their loan is "Usury" and is forbidden by a strict interpretation of Moslem law.

Rather under strict Moslem law the lender and the borrower are partners in the loan and it's profits, and each has an agreed upon share in the profits of that loan.

I'm not sure if the Islamic bank in Thailand also follows that rule or not.

[Pib]

I see 98% of the Islamic Bank of Thailand is owned by the Finance Ministry, Government Savings Bank, and Krung Thai Bank.

http://www.ibank.co.th/2010/en/about/about_detail.aspx?ID=14

Also see the Islamic Bank of Thailand is set up under the Islamic Bank of Thailand Act 2002 and regulated by the Ministry of Finance. Expect any Shariah Advisory Council/Board input is customary/figurehead in nature.

http://www.ibank.co.th/2010/en/about/about_detail.aspx?ID=1

[i claudius]

The Islamic bank is a bit like Islam itself,we do not give interest on your loan ,but we share the profits ,which is like saying we are the religion of peace ,but then blow each other up ,or us ,nearly everywhere in the world . They are just finding a way around what they are supposed to believe in

[Naam]

But Thai banks do not bring religion into it, there is no Buddhist bank, unlike the Islamic bank

what religion do Islamic banks "bring into it" pray tell?

Most of the time I value your comments (even though I don't say it much), but your attempts at being snarky fall on its face. There's a whole history and explanation of what it takes to become sharia certified (an "Islamic" financial institution) here. Note the heavy emphasis on "Sharia" and Islam.

“Shariah Board The Shari’ah Committee (Shari’ah Control and Fatwa Body that is independent of the bank) consists of learned and honest Shari’ah scholars. The Committee is responsible for expanding the Shari’ah provisions with respect to the issues that are put forward before it and to control the activities of the Division and the branches pursuant to the provisions of Islamic Shari’ah. The committee carries out its activities in total independence. The Islamic Banking Services Division is committed to the application of the fatwas and decisions passed by the Committee”

your attempts of citing Sharia provisions and regulations falls on its face because it does not list any negative details which would add to the discussions of this thread and justify the objections pulled out of thin air by some participants without quoting or substantiating reasons.

it's nearly 40 years since i devoted some time to study "Islamic banking" when living and working in Saudi Arabia. but i am still versed enough to participate in a discussion where facts are presented. the bla-bla submitted until now is nothing but ridiculous, e.g. "Islamic banks finance terrorism".

note: nowadays there's hardly any big multinational bank which does not provide various investment opportunities which conform with "Islamic banking".

[Naam]

The Islamic bank is a bit like Islam itself,we do not give interest on your loan ,but we share the profits ,which is like saying we are the religion of peace ,but then blow each other up ,or us ,nearly everywhere in the world . They are just finding a way around what they are supposed to believe in

you have once again excelled presenting ignorant, biased and narrow minded bullshit and are therefore awarded 999 points.

[KittenKong]

But Thai banks do not bring religion into it, there is no Buddhist bank, unlike the Islamic bank

what religion do Islamic banks "bring into it" pray tell?

I suspect that could be any religion that follows Sharia law. Islam is the obvious contender.

Non-Islamic banks both here and elsewhere just seem to obey the law of the land they are in, and conduct their business according to recognised financial precedents, without invoking bizarre moralistic rules be they secular or not.

For example, does a bank operating in Italy alter its banking practices to suit the Pope? Or does a UK bank make special deference to the Church of England? I dont think so.

[simple1]

But Thai banks do not bring religion into it, there is no Buddhist bank, unlike the Islamic bank

what religion do Islamic banks "bring into it" pray tell?

I suspect that could be any religion that follows Sharia law. Islam is the obvious contender.

Non-Islamic banks both here and elsewhere just seem to obey the law of the land they are in, and conduct their business according to recognised financial precedents, without invoking bizarre moralistic rules be they secular or not.

For example, does a bank operating in Italy alter its banking practices to suit the Pope? Or does a UK bank make special deference to the Church of England? I dont think so.

Very strange comment on Sharia Law, do you understand the formulation and use of Sharia Law? BTW there is no central authority in Islam similar to the Catholic Church or the C of E

The C of E does make submissions to influence banking policy and has also backed the establishment of an 'ethical bank'

http://www.churchofengland.org/our-views/home-and-community-affairs/home-affairs-policy/work-and-the-economy/banking-and-financial-reform.aspx

http://uk.reuters.com/article/2013/09/27/uk-rbs-branches-corsair-idUKBRE98Q0NH20130927

The Catholic Church is deeply involved in the banking system. The US government has put the Catholic Church on a watchlist for money laundering and some US banks and I assume others have stopped transacting with the Vatican Bank.

The Islamic Bank of Thailand is "Sharia certified'

Edited February 10, 2014 by simple1

[Donnie Brasco]

The real question that should be asked here is, dose the Islamic bank fund, support, facilitate or enable

any kind of monetary assistant to radical groups, i.e. so called "freedom fighters" of any descriptions?

as far as I know, the answer will most likely be YES, judging from other Islamic banks and financial

institutions in other places around the world, namely the middle east, north Africa that have close ties

and affiliations with radical extremist groups...

So, would I put my money with them? not even for 100% interests return...

Geez Ezra, with tax time looming, those conditions and that "freedom fighter" filter you have laid out take on an interesting tone ;-)

"Sometimes, 'fuggedabowdit' just means fuggedabowdit."

[Donnie Brasco]

But Thai banks do not bring religion into it, there is no Buddhist bank, unlike the Islamic bank

what religion do Islamic banks "bring into it" pray tell?

I suspect that could be any religion that follows Sharia law. Islam is the obvious contender.

Non-Islamic banks both here and elsewhere just seem to obey the law of the land they are in, and conduct their business according to recognised financial precedents, without invoking bizarre moralistic rules be they secular or not.

For example, does a bank operating in Italy alter its banking practices to suit the Pope? Or does a UK bank make special deference to the Church of England? I dont think so.

Opinion, of course. No basis in actual fact, research, investigation or the historical record.

Innuendo like this fans hatred.

It works hand in hand with an intellectually lazy brand of ignorance and superstition.

I doubt that Kittikong has any evidence whatsoever for his allegations nor does s/he really believe them.

(After all, one does not "believe" or "disbelieve" opinion, conjecture and allegation; one HOLDS these things until facts in evidence are proven)

"Sometimes, 'fuggedabowdit' just means fuggedabowdit."

[chiang mai]

+1 sometimes it is nothing more than it appears to be, a bank! Oh no, shock and horror, where to go for the next conspiracy theory now.

[eeeya]

this forum is unreal

[Naam]

The real question that should be asked here is, dose the Islamic bank fund, support, facilitate or enable any kind of monetary assistant to radical groups, i.e. so called "freedom fighters" of any descriptions? as far as I know, the answer will most likely be YES, judging from other Islamic banks and financial institutions in other places around the world, namely the middle east, north Africa that have close ties and affiliations with radical extremist groups...

So, would I put my money with them? not even for 100% interests return...

Using traditonal banks would leave an electronic trace, but banks have been used & low and behold some Western banks have been utilised in the transactions such as HSBC, despite prior warnings from Western security agencies. As you know HSBC was fined, perhaps equivaent to one quarter net profit for money laudering activities. Other Western banks include Lloyds and Barclays, not sure of the status of legal actions, including a number of other Western banks for money laudering for drug cartels and so on that often leads to funding arms/activities for terrorist organisatiions

It is alleged Islamic terror groups use the HAWALA system for the obvious reasons that no money is wired, no names are taken, no account numbers used, and no records kept. However, it is stated that the largest funding mechanism for Islamic extrements is through Islamic charities those funds are skimmed off.

Although a bit out of date, funding for Islamic terrorism, regulatory challenges etc is covered extensively at:

http://www.e-ir.info/2011/10/07/stopping-the-islamic-terrorist-financing-machine/

pearls before... ignorants

[KittenKong]

Very strange comment on Sharia Law, do you understand the formulation and use of Sharia Law? BTW there is no central authority in Islam similar to the Catholic Church or the C of E

The C of E does make submissions to influence banking policy and has also backed the establishment of an 'ethical bank'

The Catholic Church is deeply involved in the banking system. The US government has put the Catholic Church on a watchlist for money laundering and some US banks and I assume others have stopped transacting with the Vatican Bank.

The Islamic Bank of Thailand is "Sharia certified'

I dont see the Vatican or the CofE telling banks not to charge interest, and I doubt they would get very far if they did. Nor do I see international Italian or British banks proclaiming that they follow any specific practices that aren't applied in most parts of the world as a matter of course. You may get the occasional bank or other financial institution claiming to be "ethical" (I am not convinced) but this rarely has any impact at all on the way they do business, just on who they do the business with.

And I dont see how the Catholic church being "involved" with banking is relevant. As long as they are just "involved" and dont invent strange financial rules that might affect me and my finances then it makes no difference to me.

If people want to do weird religious things they should do them in their own backyard (or church), not in high street banks, and this applies equally to all religions and beliefs. Banking should be secular, as should schools and broadcasting and supermarkets and just about everything else.