User agnathluoo


Member for:	2 years (since Aug 8, 2022)
Type:	Registered user
Full name:
Position:
Website:	https://www.save-bookmarks.win/halal-finance-in-australia
LinkedIn:
GitHub:
YouTube:
About:	In the world where interest and debt are forbidden, a new alternative to traditional finance is being developed in the form of Islamic finance. This type of finance is free of the issue of interest as well as other types of complications in the world of finance and instead considers the suppliers of funds as joint-venturers and as partners of the venture. Islamic finance views money as "potential capital" until it is joined by other resources, including stocks, bonds or any other asset. Islamic finance is aware that time is a factor when it functions as capital, and also prohibits gambling, speculation, and taking risks in the process. Because Islamic finance is founded on the principle of supply-and-demand it is not impacted from the massive economic fluctuations due to financial instability. In fact, it could even stop the growth of economic activity in case of financial instability. In contrast, conventional banking practices require the suspension of conversion into currency in case of a bank run and will require large amounts of new liquid assets from the central bank. In this model, the money stock, or M, increases in proportion to the real income (P) however the price level will rise more slowly. Another difference in conventional and Islamic banking is that Islamic banks are not involved in interest-bearing or speculation. In contrast to conventional banks, Islamic banks engage in direct investment and trade and their liabilities are backed by savings. This means that new money flows out of sales and not the stroke of a pen. Further, Islamic banks invest their deposits in real assets and don't generate their own currency. This means that they don't create excess purchasing power.

Activity by agnathluoo

Score:	10 points (ranked #189)
Title:	Newbie
Questions:	0
Answers:	0
Comments:	0
Voted on:	0 questions, 0 answers
Gave out:	0 up votes, 0 down votes
Received:	0 up votes, 0 down votes

Wall for agnathluoo

Please log in or register to post on this wall.

If you don’t ask, the answer is always NO!

...