User grufustbaq


Member for:	2 years (since Aug 7, 2022)
Type:	Registered user
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Website:	https://www.play-bookmarks.win/islamic-bank-loans
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About:	In the world where debt and interest are prohibited, a brand new alternative to traditional finance is being developed in the form of Islamic finance. This kind of financing avoids any complexities related to interest or other kinds of transactions within the financial sector and instead considers the people who provide funds as partners and joint-venturers within the joint venture. Islamic finance views money as "potential capital" until it joins forces with other resources, like bonds, stocks, or any other asset. Islamic finance recognizes that time values money when it functions as capital, and prohibits speculation, gambling, and taking risks in the process. Because Islamic finance is based on the concept of supply-and-demand, it is insulated from the massive economic fluctuations that are caused by financial instability. Actually, it could even block any economic growth in the case of a financial instability. Contrary to this, traditional banking practices have to stop the conversion of currency in the event of a bank run and will require large amounts of new liquidities from central banks. The money stock or M, grows in proportion to the real income (P) but the price will be lower. Another difference in conventional and Islamic banking is that Islamic banks don't engage in interest-bearing or speculation. Contrary to conventional banking, Islamic banks engage in direct investment and trade and their obligations are secured by real savings. This means that money is generated out of sales and not through the stroke of a pen. Additionally, Islamic banks invest their deposits in real assets and don't create their own money. This means that they don't generate excess purchasing power.

Activity by grufustbaq

Score:	10 points (ranked #189)
Title:	Newbie
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