Islamic windows in conventional banks

Fatawa Question

Assalamu Alaikum learned brother in Islam i live in a small African country, where a local financial institution is intent on opening an Islamic banking division. I have joined this institution and am involved in the setting up of the department. I have a number of questions In the absence of any other Islamic alternatives, is an Islamic banking division acceptable, as the bank is listed on the local stock exchange and is not owned by Muslims ? due to a very limited range on possible investments, is it possible to invest depositors funds in treasury bills (One view is that government interest and taxes can be offset, as in my country taxation is the second highest in the world and can exceed 40- 50%) Are TB's acceptable ? and is it allowed to offset the taxes against the proceeds of government interest-bearing instruments ? I do want to ensure that all aspects are perfectly Islamically acceptable, and if unavoidable, these are disclosed to the public, where Muslims are a very small minority. Jazaaakalah. may Allah Taala guide and protect the Ummah at large. Ameen.

Fatwa

Click hereto view more

Publication Date

2002-03-21

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Banks
• Islamic jurisprudence
• Islamic economics
• Contracts
• Financing
• Investments
• Bank deposits
• Usury

Data Type

Fatawa

Language

English

Record ID

BIM-724624

• APA
• MLA
• AMA