As we reported not long ago, one of the oldest banks in Kuwait, BKME, will soon complete the conversion process from legitimate, civilized finance to Shariah Compliance.
Now we learn that in justifying this move, they are making claims about the durability of Shariah-Compliant financial institutions in the face of economic crisis:
“Islamic banking is increasingly sought and was the least affected among banking modes in the recent global economic crisis…”
There is a word that best describes this claim: HOGWASH.
Evidently the P.R. department at BKME has not heard about Qatar’s shaky banking sector, which had to be bailed out en masse last year, or the high default rate on sukuk (Islamic bonds), Dubai World in particular…