Tuesday, September 28, 2010

Sharia Banking in Korea

News that an effort spearheaded "by Rhee Dong-wook, a Muslim convert, and Lee Tong-ho, a former president of Korea Development Bank," "for opening an Islamic bank, tentatively called Al Amir Bank," "is still facing many challenges" — Moves to establish a local Islamic bank face hurdles. What is an "Islamic bank," you ask? "Al Amir Bank would be based on the principles of Islamic Shariah law, which bans charging interest on financial transactions."

What "challenges" and "hurdles" are faced? The report informs us that "the committee has had problems finding Islamic investors, preferably from the Gulf region." Why? First, we learn that "one of the most prominent banks from the Middle East in operation here is Iran’s Bank Mellat, whose operations were recently suspended as part of Korea’s sanctions against Iran for its suspected nuclear weapons program." Also, "Korea has yet to approve proposed tax changes for the issuance of Islamic Sukuk bonds by Korean companies due to opposition from local Christian [read, Protestant] groups."

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Blogger Aenn said...

The most important point to grasp is that Islam recognizes no higher authority to the Shariah. Islamic banks are not recognized by both the superior authority of the law of the land. Acceptance of sharia finance facilitates the goal of Islamic sharia Islamic legitimacy bit by bit, more generally, to the west.
islamic finance training

7:15 PM  

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