Islamic Banking

Islamic Banking
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Slide 1: Slide
EngelsMBOStudiejaar 4

This lesson contains 14 slides, with interactive quizzes and text slides.

time-iconLesson duration is: 20 min

Items in this lesson

Islamic Banking

Slide 1 - Slide

What do you think Islamic Banking could be about?

Slide 2 - Mind map

A little bit of background....
  • Charging interest is an ancient practice. Hammurabi (King of Babylonia)  charged 33,33333%
  • Religion and interest is not a happy combination: 
  • Bible, Torah and Koran prohibit interest. 
  • Focus was on usury (woeker)

Slide 3 - Slide

A little bit of background....
  • Until the Dark Ages, Christians were prohibited from charging interest. 
  • Calvijn and Luther were okay with interest but not with usury. 
  • Protestantism paved the road to capitalism.

Slide 4 - Slide

Principles of Islamic Banking
  • Interest is haram (prohibited/unlawful). You have to earn your money, charging interest is not earning money. 
  • Muharaba: the workaround. Someone else buys something you want but don't have the money for, and sells it to you for a higher (previously agreed upon) price. 
 

Slide 5 - Slide

Principles of Islamic Banking
  • Maysir:  gambling. It is prohibited because it won by mere chance. 
  • Unethical funds: no investing in haram products like pork, porn, weapons or drugs. 

Slide 6 - Slide

Upsides and downsides
  • Upsides: no speculation, stable basis for investment and growth. Less ''bubbles''. 
  • Downside: Islamic Bankers charge more for accounts.  

Slide 7 - Slide

Islamic Banking today
  •  $3.000 million in 2018
  • Growing market
  • <1% of total financial sector 
  • You can take loans, open savings/deposit accounts (without interest), buy shares etc. 

Slide 8 - Slide

Now that you know something about Islamic Banking, why would people use it?

Slide 9 - Mind map

Why Islamic Banking?
  • More and more synonymous to ethical banking. 
  •  No speculations 
  • 50% of the banking sector in Saoudi Arabia, Dubai and Malaysia is Islamic. 
  • Role model

Slide 10 - Slide

Future in the Netherlands
  • 1 million Muslims 
  •  Big market, you can make big money
  • Turkish banks want to start in the NL 
  • Active in Germany

Slide 11 - Slide

Would you ever consider opening an Islamic Banking account? Why?

Slide 12 - Mind map

What does Islamic Banking prohibit?
A
Interest
B
Saving money
C
Making money
D
Investing money

Slide 13 - Quiz

What are you not allowed to invest in?
A
Meat
B
Real estate
C
Weapons
D
Halal

Slide 14 - Quiz