06-26-2006, 12:16 AM
DT,
Just a question out of academic curosity. For a Western bank to provide Shariah based products, or for that matter any other bank going into these specialised products, what would be the 'cut off' or 'halal point'. I mean for a bank it will mean that any capital that they use for these products would come out of 'interest based' business.
This has been a matter of debate in UAE, where one regular bank converted all its operation to 'shariah products' in a year long transfer.
Another bank that I worked for, started of a whole new 'Islamic bank' with a Shariah based products and a Shariah committee etc.. however, the seed capital came from their 'interest bearing bank'.
Any thoughts on this.
Just a question out of academic curosity. For a Western bank to provide Shariah based products, or for that matter any other bank going into these specialised products, what would be the 'cut off' or 'halal point'. I mean for a bank it will mean that any capital that they use for these products would come out of 'interest based' business.
This has been a matter of debate in UAE, where one regular bank converted all its operation to 'shariah products' in a year long transfer.
Another bank that I worked for, started of a whole new 'Islamic bank' with a Shariah based products and a Shariah committee etc.. however, the seed capital came from their 'interest bearing bank'.
Any thoughts on this.
