State Bank of
For creating awareness and better understanding among the media people, a two-day workshop on `Islamic Banking’ for them has been organised by
In his introductory remarks, Director, SBP’s
He said that in
SBP’s Deputy Governor,
The conventional system of banking needs support to stabilize financial market. Associated products are placed into market instead of the real ones and this needs rectification, he said.
To a question,
The Deputy Governor said that SBP will hold more such workshops in
To another query, he said microfinance should be a source of helping the poor.SBP is reviewing the situation and is looking for a scheme to provide maximum possible relaxation to the small borrowers.
He said that Islam is a complete code of life that gives Muslims guidelines for every aspect of life. Islamic banking being an effort to present Islamic version of banking is therefore a necessary step towards achievement of the target set by Qura’an and Sunnah for Muslims.
He explained that Riba (interest) in fact comes from a loan with the condition that the borrower will return to the lender more than and better the quantity borrowed.
Riba is the name of every increase in lieu of which there is no Islamically acceptable consideration. The increase in the principal amount may be in the form of cash, kind or service or favour. The increase is considered riba if it becomes customary in the society. If the increase in the principal amount is as a gesture of thanks and without predetermination, it would not be riba. The literary meaning of riba is growth or increase.
He said that for reducing the risk to any party, Shariah demands transparency and clarity in dealings/contracts. In contracts, there should be a level playing field for both the parties and safety of their interests be ensured.
He said the Islam has settled once for all that there should be no return on a loan but this should be done only as a social activity.
Islamic banking is a micro level effort in this regard. InPakistan, there is 12 percent rate of growth of Islamicbanking. The visible change in financial system/economy of the country can be possible only when Islamic banking occupies at least 40 percent share of financial system.
Even today, Islamic banks in our country are facing various problems and a lot of money deposited with these remains un-utilized. However, the solutions are being worked out, he said.
He said zakat is a strong source of welfare of the poor people and regretted that our zakat system has been destroyed.
The expert of Islamic banking said that along with establishing riba-free economy, the corruption in the society must end. Otherwise, the poverty could not be eliminated.
Most Popular Stories
- Top Hispanic Tech Companies Push for the Top
- 5 Notable Hispanic Technology Executives
- Taco Bell Rings Up Breakfast Menu
- Russia, Crimea Discuss Referendum
- California Establishes Center for Coffee Study
- China Urges Malaysia Flight Emergency Response
- Visa, MasterCard Team Up to Focus on Payment Security
- For Obama, a Last Stab at Improving Ties with Capitol Hill
- Sunday Starts Daylight Saving Time
- 'Holy grail of guitars' OM-45 Deluxe Available in in NY Auction