Points of Essence:
- The author claims present banking products were the results of jurisprudential trickery and crafty methods where jurisprudence and its objectives are replaced by a jurisprudence of appearances and methodology [to achieve ends]. This is evident in credit cards and the reverse murabaha.
- He however did not offer any solutions to end this.
By Lahem al Nasser
Riyadh, Asharq Al-Awsat- Today, many Islamic banking products are based on jurisprudential trickery and crafty methods. When the jurisprudence of trickery flourishes and when jurists master these methods; it stands as evidence of their failure to adhere to Shariah’s provisions and rulings.
In this scenario, jurisprudence and its objectives are replaced by a jurisprudence of appearances and methodology [to achieve ends]. This manifests in many products, most notably credit cards, which can entail much deviousness – from obligatory card fees to be paid by holders to credit cards that combine between loans and sales.
Such practices have been addressed by many researchers and I have previously written an article about this subject. However, the most heinous form of deception is the reverse murabaha* that some banks practice. Reverse murabaha is when a customer wants to invest capital surplus in a bank by buying a commodity from the international market for its actual price then resells it to the bank on a deferred payment basis in accordance with the set time. The bank then sells the commodity in the international market to obtain the capital it will use to finance its clients. read the rest of this article at….http://islamicfinanceupdates.wordpress.com/2008/08/11/islamic-banking-products-and-trickery/