Saturday, May 22, 2010

Islamo-Finance

Some are saying it "could become an instrument for long-term economic stability" — Islamic finance growing, looking to non-Muslims. What it means:
    Islamic banking, a booming trillion-dollar industry, prohibits the payment and collection of interest, and bans gambling, so highly complex instruments such as derivatives and other creative accounting practices are banned.

    The sector also shuns investments in gambling, alcohol and pornography in favour of ethical and socially useful investments.

    Real assets must back transactions, whilst the customer and the institution share the risk of any investment and divide any profits between them.

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Omnes Sancti et Sanctæ Coreæ, orate pro nobis.