Islamic Finance

The fundamental question that concerns me is "What in essence is Islamic Finance?" I have shared this question on IBF net. I am having a very lively discussion on the topic. So far generally, there is a consensus that the way Islamic Banking is being practiced, it is not quite Islamic, it disguises conventional banking products. A very straight forward comment on an Islamic Banking product - Murabahah Contract - is from Brother Dr. Mahmood Ahmed "Finance, whether Islamic or conventional, is dependent on financial inter mediation which has three essential features-1.Principal amount,2.Rate and 3.Time. All these three must be pre- determined. Hence an intermediary accepts signature of the client in a set of charge documents as per law of the land then makes him agent to buy goods which is not an essence for it but is done as an eye wash for labeling it "Islamic" which is a religious cheating in the name of Islamic finance. Signing in a baking charge document makes a client owe to the bank and the bank creates bank money out of nothing for financing which is unjust and is the cause of current world recession. Financial inter mediation cannot be Islamic indeed. Please read "Financial Institutions and Markets, Second edition, written by Meir Kohn. It will open your eyes to understand well that banking is a gambling which can not be Islamic. Are you interested to buy Islamic wine?"