For the past four decades, Islamic banking has grown in prominence in financial sectors of Muslim countries, including Pakistan. But is this just a marketing gimmick or is it really required in Islam?
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00:00Islamic banking is an ethical banking, this is a participatory banking and it's known
00:12as a Sharia-compliant banking.
00:36If you want to take a loan from Islamic bank, then Islamic banks will not give you loan.
00:43Why?
00:44Because money is not treated as a commodity.
00:46Islamic banks will enquire, you want loan for what?
00:50So if you want to buy a machinery, then Islamic banks will buy that machinery from the market
00:57and then will sell that machinery to you.
01:27I have two accounts, one in Islamic banking and one in conventional banking.
01:58It's better to put it into Islamic bank which is being supported by all of the Sharia scholars.
02:06I think Islamic banking is a very weak alternative for commercial banking.
02:11In countries like Pakistan where people have very little knowledge about finance,
02:15but they are very religious, Islamic banking is a banking system devised for them
02:21to make it feel like what they are doing is Sharia-compliant.
02:27For more information visit www.ISGlobal.org