Establishment of Islamic banks : question establishing Islamic banks

Fatawa Question

Assalamaleykum Warahmatulah Wabarakatuh. 1. From your experience what are the major legal requirements that Islamic banks cannot fulfill under conventional baking laws when they apply for licence in non Muslim countries ? Identification of such legal impedments is helpful as it enables me to recommend for possible legal amendment to accomodate Islamic banks under Ethiopian laws. 2. In case a dispute arises between Islamic banks, clients, and entrepreneurs, can ordinary courts handle such cases ? 3.Most Islamic bank assets are tied up in joint venture. Then how can they fulfill liquidity requirement ? 4.Uder Islamic law, it is said that profit is justified by risk. Based on this principle Islamic banks don't guarantee saving and investment accounts. In my opinion this discourages depositors. What is the source of this principle ? The Qur'an or the Hadith ? 5.In what kinds of direct investment can Islamic banks directly involve ? Wassalam

Fatwa

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Publication Date

2006-05-03

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-788455

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