How can u justify fractional reserve system in Islamic law.fractional reserve banking is all about lending more than you got, they create money out of no where.
A very clear and realistic analysis. Ibrahim should have mentioned the business model of Primary Finance. It feels almost too good to be true when considering shariah compliance.
The majority of investment by Islamic banking is in Government securities the only difference is that instead of interest they call it a rental agreement. Also, the profit of the Islamic bank goes up with the interest rate.
But does that make their increase in profits haram? From my understanding, Ribaa/interest is any type of unjustly gain. But they are profiting through justly mean no? Does a doctor salary become haram if his hospital engages in haram investments? The prophet peace and blessings be upon him had warned us that no one will be able to escape from interest. What is the way one should conduct himself today?
@@mohammedalhendi5764 The bank lends to the government against a fixed return and call it a rental agreement. the correct way is to share profit and loss in a business not just make money with money. The renting is possible against any producing asset not against money.
Good timing for this as I recently listened to a podcast on Saifeddin Almous's channel where the guest they had on was of the view that it is a sham; interesting to hear this perspective
Jazakhallah khair, good video. To be honest, its only a matter of time before we see a collapse of this extreme debt financed economy. The wheels are already starting to fall off but what sad is not that we are not already campaigning for a change but that when it all does collapse we are not even in a position to implement healthy Shariah ideas because we are so far from our understanding of it. Myself included :( so we will leave it back in the hands of people who are just not aware of how wrong Interest is.
Short answer: NO Longer answer: Go deep into the issues like ownership, trade, contracts, equity and justice between borrower and lender, and much more.
Tell me what were the primary causes of the 2008 financial crisis? If the banks were adopted islamic financing and were at risk they would have been incentivised to do proper due diligence and responsible lending -> avoiding core issues with subprime mortgages, misleading AAA bonds, excessive leverage -> mitigating systematic risk & impact. You are thinking micro not macro. But hey, whatever makes u feel better bro
What about kcc or shg or short term loan,I am working in a central Cooperative Bank undertaken by state government,we give small term finance how can we ask for ownership from the farmers for short term credit.We are working as intermediary we keep deposit and give advances.
How did you arrive to that conclusion? That is so wrong. The conclusion is that it is HALAL but not solving the problem. It’s basically what he said, islamic finance is like building a prayer room in a Strip club. You can pray in there but the bigger problem is how to get rid of the strip club in the first place!
@@salmi_azrinparentsonly863 thats like saying that the chicken is halal, but the cooking process is haram, so it doesn't matter if the chicken is halal, the system has to be fixed
@@salmi_azrinparentsonly863 what are you saying, it is haram because it doesn't solve the problem, the problem is riba, which is haram and islamic banking now is just a disguised form of riba.
@@artfox3903 It is halal because the majority of the Ulema says it is. The contract is different. That is enough for most of us. This is the problem with people today. When the Ulema say it is haraam, you say it is halal... but when the Ulema say it is halal you say it is haraam.
@@salmi_azrinparentsonly863 I follow Allah rules not Ulema rules, i have my own mind to think about stuff rather than follow others blindly, you seem to be using them yourself or thinking of using them that's why you want to convince yourself that they are Halal, well the reality is that they aren't. I'm happy to discuss it with you, but if you're the kind that won't change his mind then i'll rather not loose my time.
What you're suggesting we need to secure the financial interests of our "Muslim community" and not let's make our financial transactions aligned with divine guidance and beneficial to everyone.
Islamic mortgage is nothing but usuary. Usuary, often referred to as usury, is the practice of lending money at unreasonably high interest rates. It's easier to pay mortgage but impossible to pay back so-called Islamic mortgage.
I agree with your brother Muslim countries can do better and they can advocate for us who live in the West to get our hands and proven techniques that already work at their shores. There's also a great opportunity in the West because many Muslims have been priced out they keep paying high and higher rents and they miss out and generating wealth through their homes and we're talking about millions of dollars here. As a former real estate agent in the United States I couldn't make a sale because of interest to clients and I would refer them to other people would make the sale and make the zero commission. But I would be right there with them when the market was falling and I would help them navigate to salvage the situation. There's a big story that's not been told of Muslims who have the opportunity to create generational wealth through homes I know they're missing is Islamic Banking finally arrive 🛬 to Western countries. I have some idea's how that will be done and write something inshallah. Any way great job on the video of looking at banking system as whole can please list those people who are not Muslims that engaged in trying to get rid of the fractional banking which will return the banks to the former role and from the monster they have become
The title of the video is Islamic banks are scams and you make the entire point on it for the video but for solutions you mention to follow esg compliance and use islamic bank (all of which are more scams). This is just a disappointing video brother.
how this scam works in laughable. It reminds me of orthodox jews asking non jews to switch light on their houses on Shabbat day. God forbid Jews from using these on Shabbat day, Jews say so. But hey why not ask a non jew to do it for them. Lol
Salaam, great video. Can you do something on the meaning of "interest" in the current climate, I feel like in a lot of situations, the "interest" we have nowadays is not the "interest" 1400 yrs ago.
There exist different kinds of intetest. The problem is our understanding of x % interest and we think it is haraam or halaal. But in reality, in Islam, there exist interest on loan, interest on items, etc... (which are haraam), but also "interest" could be halaal. For example: if I m the owner of my own car (ownership is important) and I sell you this car for 1000 euro full payment, or I will give you the option of paying me 110 euro over 10 months (equals 1100 euro). Islamically this is correct and allowed, but most of us have a disrupted vision of Islam. This disrupted vision is spread over various aspects such as interest, halal relationships, zina, fraude, drugs, smoking, lying, shirk etc...
If you take a loan from a bank 1000 USD then you return 1100 USD, the difference (100 USD) is the interest. this interest is ONE form of riba. this type of riba exists from long time. The whole point of avoiding riba is to prevent transaction between two asset with the unequel value.
@@khaliifshiikh2289 Interest is one kind of Riba. Check out Al Qurtubi, Qadi Abu Bakr ibn Al Arabi and Ibn Ajibah's Tafseer on Ayat Quran 2:275-279 where Riba is defined as two types: 1. Riba Al Fadl (on quantity, where interest is one kind of Riba fits in this category) 2. Riba An-Nasiah (on deferment, delay in payment i.e. debt cannot be financed with instruments of debt)
Muhammad Qasim’s dreams indicated the reasons for Imran Khan failures and his struggles before they happened. They also had indications and guidance on how Imran Khan could save his Government from disaster.
If Muhammad Qasim’s dreams about failure of Imran Khan and chaos in Pakistan have come true, then his dreams about the development and prosperity of Pakistan will also come true in future.
Aug 2020 - Imran Khan has failed Pakistan but he is not willing to accept this, and he is also aware that the dreams of Muhammad Qasim about him and Pakistan’s situation have also come true.
How can u justify fractional reserve system in Islamic law.fractional reserve banking is all about lending more than you got, they create money out of no where.
A very clear and realistic analysis. Ibrahim should have mentioned the business model of Primary Finance. It feels almost too good to be true when considering shariah compliance.
Glad people are starting to wisen up about these.
The majority of investment by Islamic banking is in Government securities the only difference is that instead of interest they call it a rental agreement. Also, the profit of the Islamic bank goes up with the interest rate.
But does that make their increase in profits haram? From my understanding, Ribaa/interest is any type of unjustly gain. But they are profiting through justly mean no? Does a doctor salary become haram if his hospital engages in haram investments?
The prophet peace and blessings be upon him had warned us that no one will be able to escape from interest. What is the way one should conduct himself today?
@@mohammedalhendi5764 The bank lends to the government against a fixed return and call it a rental agreement. the correct way is to share profit and loss in a business not just make money with money. The renting is possible against any producing asset not against money.
Good timing for this as I recently listened to a podcast on Saifeddin Almous's channel where the guest they had on was of the view that it is a sham; interesting to hear this perspective
Bhai saab that's an very precise, clear explanation 👍
Jazakhallah khair, good video. To be honest, its only a matter of time before we see a collapse of this extreme debt financed economy. The wheels are already starting to fall off but what sad is not that we are not already campaigning for a change but that when it all does collapse we are not even in a position to implement healthy Shariah ideas because we are so far from our understanding of it. Myself included :( so we will leave it back in the hands of people who are just not aware of how wrong Interest is.
Where do you think the money from an islamic bank comes from? The whole system is based on riba. You cannot escape it.
Is the difference between Islamic & conventional banking just semantics?
Short answer: yes.
Short answer: NO
Longer answer: Go deep into the issues like ownership, trade, contracts, equity and justice between borrower and lender, and much more.
@@zamanmk Wrong, Wrong, Wrong. But if it eases your conscience...
Tell me what were the primary causes of the 2008 financial crisis? If the banks were adopted islamic financing and were at risk they would have been incentivised to do proper due diligence and responsible lending -> avoiding core issues with subprime mortgages, misleading AAA bonds, excessive leverage -> mitigating systematic risk & impact.
You are thinking micro not macro. But hey, whatever makes u feel better bro
@@darkgalaxy5548 You clearly did not watch the video.
Loving these new videos after rebirth of the IFG brand. Food for the modern Muslim masses!
What about kcc or shg or short term loan,I am working in a central Cooperative Bank undertaken by state government,we give small term finance how can we ask for ownership from the farmers for short term credit.We are working as intermediary we keep deposit and give advances.
Scholars who allows Islamic Banking are operating (issuing) fatwa on incomplete islamic products
Great video thanks for clarifying Jzak
short answer: no they aren't halal cuz the system itself is corrupt
How did you arrive to that conclusion? That is so wrong.
The conclusion is that it is HALAL but not solving the problem. It’s basically what he said, islamic finance is like building a prayer room in a Strip club. You can pray in there but the bigger problem is how to get rid of the strip club in the first place!
@@salmi_azrinparentsonly863 thats like saying that the chicken is halal, but the cooking process is haram, so it doesn't matter if the chicken is halal, the system has to be fixed
@@salmi_azrinparentsonly863 what are you saying, it is haram because it doesn't solve the problem, the problem is riba, which is haram and islamic banking now is just a disguised form of riba.
@@artfox3903 It is halal because the majority of the Ulema says it is. The contract is different. That is enough for most of us.
This is the problem with people today. When the Ulema say it is haraam, you say it is halal... but when the Ulema say it is halal you say it is haraam.
@@salmi_azrinparentsonly863 I follow Allah rules not Ulema rules, i have my own mind to think about stuff rather than follow others blindly, you seem to be using them yourself or thinking of using them that's why you want to convince yourself that they are Halal, well the reality is that they aren't.
I'm happy to discuss it with you, but if you're the kind that won't change his mind then i'll rather not loose my time.
jazak allahu kheir, i thank you so much for this video masha allah
Hey bro I wanted to get a rebrand too, which company can you recommend?
What you're suggesting we need to secure the financial interests of our "Muslim community" and not let's make our financial transactions aligned with divine guidance and beneficial to everyone.
Islamic mortgage is nothing but usuary. Usuary, often referred to as usury, is the practice of lending money at unreasonably high interest rates. It's easier to pay mortgage but impossible to pay back so-called Islamic mortgage.
I agree with your brother Muslim countries can do better and they can advocate for us who live in the West to get our hands and proven techniques that already work at their shores.
There's also a great opportunity in the West because many Muslims have been priced out they keep paying high and higher rents and they miss out and generating wealth through their homes and we're talking about millions of dollars here.
As a former real estate agent in the United States I couldn't make a sale because of interest to clients and I would refer them to other people would make the sale and make the zero commission. But I would be right there with them when the market was falling and I would help them navigate to salvage the situation.
There's a big story that's not been told of Muslims who have the opportunity to create generational wealth through homes I know they're missing is Islamic Banking finally arrive 🛬 to Western countries. I have some idea's how that will be done and write something inshallah.
Any way great job on the video of looking at banking system as whole can please list those people who are not Muslims that engaged in trying to get rid of the fractional banking which will return the banks to the former role and from the monster they have become
Not bad. Better than what most so-called Islamic scholars have to say.
The title of the video is Islamic banks are scams and you make the entire point on it for the video but for solutions you mention to follow esg compliance and use islamic bank (all of which are more scams). This is just a disappointing video brother.
Islamic finance is a human invention. There is nothing Islamic about it. 2 things we should re think. The original intention and is it a pure trade?
how this scam works in laughable. It reminds me of orthodox jews asking non jews to switch light on their houses on Shabbat day. God forbid Jews from using these on Shabbat day, Jews say so. But hey why not ask a non jew to do it for them. Lol
Yes, sadly, it usually is
Salaam, great video. Can you do something on the meaning of "interest" in the current climate, I feel like in a lot of situations, the "interest" we have nowadays is not the "interest" 1400 yrs ago.
There exist different kinds of intetest. The problem is our understanding of x % interest and we think it is haraam or halaal. But in reality, in Islam, there exist interest on loan, interest on items, etc... (which are haraam), but also "interest" could be halaal. For example: if I m the owner of my own car (ownership is important) and I sell you this car for 1000 euro full payment, or I will give you the option of paying me 110 euro over 10 months (equals 1100 euro). Islamically this is correct and allowed, but most of us have a disrupted vision of Islam. This disrupted vision is spread over various aspects such as interest, halal relationships, zina, fraude, drugs, smoking, lying, shirk etc...
If you take a loan from a bank 1000 USD then you return 1100 USD, the difference (100 USD) is the interest.
this interest is ONE form of riba. this type of riba exists from long time.
The whole point of avoiding riba is to prevent transaction between two asset with the unequel value.
Study fiqh you will find the answer
Usury is Riba. Interest is Math.
Interest = riba
Are you muslim?
@@khaliifshiikh2289
Interest means %.
@@khaliifshiikh2289
Interest is one kind of Riba.
Check out Al Qurtubi, Qadi Abu Bakr ibn Al Arabi and Ibn Ajibah's Tafseer on Ayat Quran 2:275-279 where Riba is defined as two types:
1. Riba Al Fadl (on quantity, where interest is one kind of Riba fits in this category)
2. Riba An-Nasiah (on deferment, delay in payment i.e. debt cannot be financed with instruments of debt)
So it’s better that some stupid king hold all the wealth and not a bank?
Just another fraction it is
Isn't Crypto currency solution for this
Muhammad Qasim’s dreams indicated the reasons for Imran Khan failures and his struggles before they happened. They also had indications and guidance on how Imran Khan could save his Government from disaster.
If Muhammad Qasim’s dreams about failure of Imran Khan and chaos in Pakistan have come true, then his dreams about the development and prosperity of Pakistan will also come true in future.
Aug 2020 - Imran Khan has failed Pakistan but he is not willing to accept this, and he is also aware that the dreams of Muhammad Qasim about him and Pakistan’s situation have also come true.