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Friday, 26 March 2010

BLOM Case Against Investment Dar Undermines Islamic Finance

You may recall reading this here on 5 March 2010.

Today my favorite financial newspaper, The Financial Times, ran an article entitled "Court concession raises Islamic finance risk".

I think I may have scooped the FT.

2 comments:

  1. Well done :-)

    Ive been arguing for a centralized sharia board to islamic banks for awhile now.

    Its not enough to have islamic accounting standards that can be selectively applied by an in-house board.

    Too many conflicts of interest imo

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  2. Ali

    Thanks your comment.

    Wouldn't this be a bit difficult though, given that there are four recognized legal mathhabs?

    And that even within a single mathhab there might be differences of opinion.

    It also seems to me that in this case there is a more fundamental problem.

    Basic ethics.

    I don't think TID is challenging the right to "profit" on similar structures as long as the investor has decided to participate in its restructuring.

    And I think that basic ethics is how we tell the Islamic bankers from the "Islamic bankers". Sura 2 Ayat 8 would seem to be relevant here.

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