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