Skip to comments.Islamic bank struggle in Philippines
Posted on 07/28/2014 12:16:33 AM PDT by Citizen Zed
A peace plan, a lifting of foreign ownership limits and the drafting of new Islamic banking rules in the Philippines could help breathe new life into one of the worlds oldest Islamic finance institutions.
Since 1974, Makati-based Al Amanah Islamic Investment Bank has been the only lender in the country offering financial products that obey religious principles such as a ban on interest and gambling.
But while Islamic banks around the globe enjoy rapid growth rates and bumper profits, Al Amanah has failed to post a profit for years, and was ultimately forced to offer conventional banking products just to keep afloat.
The case of Al Amanah highlights the challenges that Muslim minorities face in accessing interest-free banking services outside of Islamic bankings core centres in the Middle East and Southeast Asia.
(Excerpt) Read more at therakyatpost.com ...
They charge a big old fat fee in advance probably
Islamic banks do charge interest - they just dress up the loan so that they can pretend that they don’t.
It’s childish and self-deceiving.
How does a loan institution make money without charging interest rates above the rate of inflation?
I don’t get it.
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