Monday, March 26, 2012

Post Script : Looking at Islamic Banking in its Proper Context

 Questions and Answers Pursuant to the Article

To mcoba google
Subject : Re Looking at Islamic Banking in its Proper Context
zahid aziz (
Sunday, March 25, 2012 3:58:06 PM
mcoba google (

Such insightful questions! We cannot understand where we are today without understanding history. History will tell us there was a time when the world lives without riba. In the 15th century the Church was the government in Europe and the forbidden of usury in the Bible was implemented strictly. Then came the rise of the intellectuals in the likes of Martin Luther of Germany and John Calvin of England who led the movement to sack the Church and created the new religion called Secularism. In the wake, John Calvin wrote a treatise to justify riba and Christians no longer questions its practise. In the meantime rich families in the likes of Lombardy's came into being in Italy, and Jews they employ to conduct riba banking had their workbench called 'banco' giving birth to the name banks we know of today. In then Malaya this twin evil of riba and secularism was brought to our shores by the British so much so we embraced them as our own values. The fall of the Uthmaniah Caliphate or the Ottomans as the west are fond of referring to them, was the direct result of the last Caliph taking great debts from the Europeans. If you read John Perkins, Confessions of an Economic Hitman you will understand why the Quran says Allah and His Rasul will declare war on the practitioners of riba. Today there are over 30 countries who are debt slaves of America via the evil door of riba. The Islamic Empire during the rule of the Rightful Caliphs prospered without riba; the Caliphs that expanded the Islamic Empire later on also ruled Caliphates that prospered without riba. Our misery began with the collapse of the last Caliphate; we then became nation states and Muslims no longer have a Khalifah. We then began the journey to become the foams of the waves of oceans as described by the Prophet saw; plentiful in numbers but weak.

Saturday, March 24, 2012

Looking at Islamic Banking in its Proper Context

Assalamu 'Alaikum,


This article appeared in Forum page of The Edge Malaysia, Issue 902, Mar 19-25, 2012
My Say: Looking at Islamic Banking in its Proper Context
Written by Zahid Aziz March 19 2012

The Muslims Consumers Association of Malaysia (PPIM) in a press statement dated 12 February 2012 criticized banks “who use the name ‘Islam’ in efforts to promote and sell their respective products when in reality they still oppress and use methods contrary to Islamic law.”

The Association of Islamic Banks in Malaysia (AIBIM) countered “All Islamic banking institutions in Malaysia operates in accordance with Syariah values and are well regulated in compliance with high standards…”

I believe that we are today actually guilty of failing to see Islamic banking in its proper context. To put it simply, the true environment of Islamic banking as expected by the Shariah is that it should be operating in a riba free environment, in a riba free economy. In other words it should be a sole single system operating in an Islamic economy, putting aside the wider environment of Islamic law for the moment.

What we find today is an Islamic banking system enveloped and impacted by the riba banking system operating within a riba driven economy. Practitioners of Islamic banking understand these daily pressures imposed on them by riba banking, but often, they are not able to articulate the issues to the general public. Incidentally, this is the voice I tried to give them in a thesis entitled “The negative impact of riba banking on the performance of Islamic banking in a dual system like Malaysia” that I recently submitted to a local university.