Sunday, 29 April 2012

Islamic Banking System

Assalaamu'alaikum wa rahmatullah

Evil Period

This period is again period of evil. I read Hindu and Buddhist scriptures when I was a young secondary school kid and I found they talked about evil period after the righteous cycle of period. I had mentioned before I don't think like normal kids when I was a little kid. It makes me difficult to mingle with people around even with adults and for now I have to seclude myself from "normal" Muslims because I don't want their aqeedah to be harmed. I love my brothers and sisters I don't want my brothers and sisters being tormented that always make me always sacrificing myself for everyone around me. Those scriptures basically mention that things which are righteous being seen as evil while evil things being seen as good. The same thing about our Path being blackened and tainted by the cycle of period.

So, I am trying to fight the current as a lay man and spreading wide His "True" teachings through our Sacred Path and through His Holy Light. I beg my beloved brothers and sisters to please help me. Please be the soldiers of Allah. We don't slaughter or hurt people, plants, nature or animals when being His soldiers. We spread knowledge and awareness to people so everyone will be saved from diseases of evil. Please spread the knowledge of Shariah Islamiah to those who are still not aware about it and to those who are interested may Allah purify everyone's heart. 


In this post I just wanted to put on this article about Islamic Banking in our country. I believe other countries with Muslim population such as Saudi Arabia also having this. Please stop talking about Muslim countries. I know few movements like Hizbut Tahrir also talk about this but I never bother to listen to them as I believe His Will is the Truth. No Muslim countries in this world for the time being. People of Shariah branches of science never believe in Muslim or Islamic countries. There is no such thing because an Islamic or a Muslim country is a sacred country nearest to His Kingdom. Try asking the jurists in Shariah court and you'll get the same answer. I talked with them and my father always doing interview with the ex-mufti in Kuala Lumpur for example with Hashim Yahya and he brings me with him. My father is not a religious person. I cry and pray for him everyday because he listens to things but he does not understand anything. It is not his fault. He was not properly educated and is not fortunate. I try to memorize Quran for my parents, grandparents and my brothers and sisters. I wanted to save them if they can't save their own selves.   

I read this article written in a Malay newspaper written by Prof. Muhammad Azam Muhammad Adil from Center for Islamic Thought and Understanding, Universiti Institut Teknologi Mara, Shah Alam - Malaysia. It was published in Utusan Malaysia religious reading section around 16th of February 2012. So any brother or sister doing researches on economic angle of Shariah, I assure you don't hesitate to use this source in this post. I put the source here as to make it easier for you to do researches and begin to implement them in your organizations. This is sincerely dedicated to Allah apart of my personal record. It talks about how far Islamic banking system in Malaysia serves its goal to protect the welfare and the interest of its customers?

History of Islamic Banking System - Malaysia

Islamic banking system in Malaysia had begin with the establishment of Malaysian Islamic Banking Corporation Limited (BIMB). It was granted license by the government in order to implement the business according to Shariah Islamiah and operating as a bank.

As compared to Tabung Haji which has its goal to assist Muslims in Malaysia to save their money to perform Hajj pilgrimage, Islamic banking system in Malaysia offers schemes without usury covering the wadi'ah (saving account), mudharabah (investment), bai' bi thaman and murabahah for car and housing loan or deferred payment sale. 

In the beginning, the concept of non-usury or non-excessive interests facing many problems and obstacles. People were still complaining that the charges taken by the banking system such as the car and housing loan was still high but after many researches done it is now growing better and better after 30 years of its implementation.

Islamic banking system with non-usury concept is now developing with its expansion into conventional banking counters known as Islamic Windows. It begins since 1993 at the time European Union gets its current name through Mastricht Treaty, lol. Later in 1999, Mua'malat Banking Corporation was established. Since 2003, many conventional banks were also opening their own sub-companies based on Islamic Banking system. 

While local banks were competing among each other, two Middle East banks had penetrated Malaysia through their branches in the mid of 2000. Those banks are the al-Rajhi and Kuwait Finance House (KFH). I have a saving account in al-Rajhi too. All of the people at home supporting this bank because it's from our land of origin and it makes us easier when we go for pilgrimage in Saudi. I know one of Arab descent of Kedah who was the officer in Kajang branch of Selangor and we talked for few hours after I registered the account around the end of 2003. They said that statistics show that customers' acceptance to these two banks were quite satisfying. Even non-Muslims are also opening their saving accounts there. So, these two banks from Middle East had also become apart of the scene in the banking landscape in Malaysia.

These two banks of Middle East introduced new concepts or methodologies in providing loan for customers such as Musharakah Mutanaqisah (home financing) and Tawarruq to replace local system of Bai' al-'Innah (sale and buy back contract) and Bai' ad-Dayn (buying with loan). These new concepts take more reasonable payment profits as compared to older concepts used in local Islamic banking system.

When looking back at the definition of Shariah, it literally means straight path which brings everyone toward the source of the water. Philosophically, it means a stream which brings a human to a system that will make them happier and feel at peace in the world and the hereafter (physically and spiritually). A holistic system of life in its approach and goal. As a technical term, Shariah refers to a system revealed by Allah/The God through His revelation and divine inspiration which covers the components of creed, morality and civilization and jurisprudence or legal. It is not about a court which prosecute adulterers (or if some people love sex so much until they don't care about the place to screw up or screwing all over the place even in front of the public for exhibition like animals) or a court which plucks out the eyes of women who talk with an unknown man. This is not Islamic concept at all like has been propagated in the West by irresponsible medias! The prosecution of adulterers came from Hebrew Torah if people wanted to talk about stupid racist things in the past. The plucking of human eyes came from Hindu tribal man-made laws. Now I am an Orthodox Muslim and I talk as a civilized man. It does not mean that I am looking down at Orthodox Jews or Orthodox Hindus instead I highly respect their culture, customs and faiths.

So, anything which complies within the technical term meaning of the Shariah are acceptable and could be practiced as to show how flexible it is. European Union has several treaties and their member states' policies also have to comply within the Union framework. So, does the Shariah. There are also member states who don't care about the treaties and they joined the European Union simply because few personal reasons. So, does the Muslims and they interpret the revelation according to their worldview and region. 

In our Path, Allah has revealed the Creed, the Morality and Manners and the Legal basis for us to be integrated as our Way of Life. So, any subject matter or mawdhu' of our daily life and activities must be in accordance to the Shariah. Is it so hard to be understood?! I think this is just a simple thing as compared to what I have to learn again in part of European Union. It is so chaotic and the Union itself is originated from world wars remnants and period. I hate wars and I love peace! 

I am trying to simplify the article on the goal of the Shariah in banking system. Hope I have some space and time for this. I believe it is very important for lay men to always be informed about the Shariah as we are facing slanders from every corner. Insha Allah, we will try to finish the article through His Will.

Sealed with prayers for mercy, peace and love amin!                         

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