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+--- Thread: KIBOR (/thread-kibor)
KIBOR - Shirazi - 10-27-2010
Dear All,
1- What is KIBOR?
2- If it is Haram, so why are Islamic banks charging KIBOR differences to their leasing cutomers and calculating profit on the basis of KIBOR?
Plz guide and help urgently,
Regards
Shirazi
- noman - 10-27-2010
Kibor is interbank borrowing rate....its index/benchmark against which every one base their prices...
so to stay competitive the islamic banks also follow it determine their pricing n stuff..
ideally they should not be based on this and should have some independent criteria to determine their pricing n operations......but as of now...they are stuck with it......i myself don't see islamic banking as being islamic untill they find an altternative to KIBOR based pricing.