07-22-2009, 08:07 PM
may i inquire that how there isn't a factor of chance involved in Islamic Insurance?
Secondly, if we consider the case of sale and leaseback, the intent of the transaction is not to have a SALE and LEASEBACK, but the intent is to raise finance. Even the accounting practices for such a transaction is to record it is a MODE OF FINANCE rather than as a SALE and LEASEBACK transaction. In short, the real substance of the transaction is different from its legal form.
Similar is the case with Ijarah(the mode of finance through which Islamic banks lease cars). If the lessee defaults a lease payment, they are bound to pay a CHARITY to the bank(which is by the way always almost equal to the compound interest charged by conventional banks) under the terms of the Ijarah contract. Bounding a person to pay CHARITY to the bank is a very objectionable matter.
to the change the subject entirely; some people give an argument that the monetary system should be run according to the Gold Standard instead of the Fiat Currency in order to establish a purely Islamic economic system. The Austrian School of Economics also supports the Gold Standard, but the standard is considered to be one of the major causes of the Great Depression. Can anyone expand on the pros and cons of the Gold Standard and the difficulties involved in the establishment of such a system?
Secondly, if we consider the case of sale and leaseback, the intent of the transaction is not to have a SALE and LEASEBACK, but the intent is to raise finance. Even the accounting practices for such a transaction is to record it is a MODE OF FINANCE rather than as a SALE and LEASEBACK transaction. In short, the real substance of the transaction is different from its legal form.
Similar is the case with Ijarah(the mode of finance through which Islamic banks lease cars). If the lessee defaults a lease payment, they are bound to pay a CHARITY to the bank(which is by the way always almost equal to the compound interest charged by conventional banks) under the terms of the Ijarah contract. Bounding a person to pay CHARITY to the bank is a very objectionable matter.
to the change the subject entirely; some people give an argument that the monetary system should be run according to the Gold Standard instead of the Fiat Currency in order to establish a purely Islamic economic system. The Austrian School of Economics also supports the Gold Standard, but the standard is considered to be one of the major causes of the Great Depression. Can anyone expand on the pros and cons of the Gold Standard and the difficulties involved in the establishment of such a system?
