Islamic Finance’s Ban on Interest Inoculates Itself from Credit Crunch
finding dulcinea. / Anne Szustek
01-Dec-2008 (3 comments)

Investment vehicles that adhere to sharia, or Islamic law, have been
largely unscathed by much of the global credit crunch, thanks to
religious beliefs stipulating that money lent must be backed by
collateral. This simple rule curbed Islamic financial units from buying
collateralized debt obligations, the repackaged investments of
securities now known largely as “toxic debt.”


Islamic Banks Exempt from Current Global Crisis

by asefati on

I think that is one of the things Islam got right. No interest on loans means more serious loans, lenders, and borrowers, and therefore a more stable economy.



Obviously that does not

by What (not verified) on

Obviously that does not apply to most banks in the Islamic Republic of Iran.

Pasargad bank and some other banks are paying over 19% interest rate on certificate of deposits. The IRI banks have always charged interest when lending their borrowers. Where have you been?

You, lady, need to educate yourself.



by I wonder (not verified) on

Then why Parsian bank in the Islamic Republic of Iran, the cradle of Islamic civilization (lol!), is paying up to 19 percent interest over savings?