User branyabpgw


Member for:	2 years (since Aug 8, 2022)
Type:	Registered user
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Website:	https://www.stroimvmeste.com.ua/user/tiableslnv
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About:	In an era where debt and interest are forbidden, a alternative to traditional finance is being developed in the form of Islamic finance. This form of finance is free of any complexities related to interest or other kinds of transactions in the financial sector, and instead treats the fund's suppliers as joint-venturers and as partners in the venture. Islamic finance treats money as "potential capital" until it joins forces with other resources, including bonds, stocks or any other asset. Islamic finance recognizes that time is a factor when it acts as capital, and prohibits gambling, speculation, and taking risks in the process. Since Islamic finance is based on the principle of supply-and-demand, it is immune from large economic fluctuations due to financial instability. Indeed, it could even block any economic growth in the case of financial instability. In contrast, conventional banking practices have to stop the conversion of currency in the event of a crisis, and require large amounts of new liquidities from the central bank. The amount of money or M, rises proportionally to the real income (P) however the price of the stock will rise more slowly. Another distinction that distinguishes conventional from Islamic banking is that Islamic banks do not engage in speculation or interest-bearing loans. Unlike conventional banks, Islamic banks engage in direct investment and trade, and their liabilities are backed by savings. This means that the cash flows from sales, not the stroke of pen. Furthermore, Islamic banks invest their deposits in real assets and don't create their own money. This means that they don't create excessive purchasing power.

Activity by branyabpgw

Score:	10 points (ranked #189)
Title:	Newbie
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Comments:	0
Voted on:	0 questions, 0 answers
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