Barclays Kenya launched Islamic products

Barclays Bank of Kenya Ltd (Barclays Kenya) has unveiled innovative Shariah compliant personal and vehicle finance products: La-Riba Personal Finance, and La-Riba Vehicle Finance.

As the first bank to launch Islamic products in Kenya, Barclays is committed to enhance the Islamic banking offering to ensure customers enjoy a rewarding banking experience, said the regional managing director of East and West Africa, Adan Mohamed.

Mr. Mohamed observed, “At Barclays Kenya we continuously look at ways of enhancing our financial products and services to ensure we anticipate and meet the evolving needs of our customers – this is key to our strategy.

“The products we are launching 13TH, February, 2010 are aimed at meeting the financial needs of customers and small business owners who need more specialised products than what conventional banking can offer.”

Customers will be able to purchase household goods and equipment under the La-Riba Personal Finance product, while La-Riba Vehicle Finance will be used to support customers to buy new and used vehicles.

Mr. Mohamed added, “The products were developed in consultation with Barclays Shariah Advisory Board and are Shariah compliant.”

The Regional Managing Director said that the product is based on Murabaha mode of financing which entails a cost plus profit.

He explained, “It is not a loan given on interest but sale of a commodity based on price and an agreed profit.

“Barclays Kenya first buys the goods, takes possession, and then resells it to the customer at a higher price representing the cost plus profit margin.”

He added that at the point of purchase, the client will know the specific cost, profit, and re-payment period.

Customers can purchase goods worth a minimum of Khs 50,000 and up to a maximum of Khs 1 million. Customers who bank at Barclays Premier Life and Barclays Premier Centres can access goods worth Khs 1.5 million and Khs 4 million, respectively.

The products can be accessed throughout the entire Barclays Kenya branch network and dedicated La-Riba Suites.

Mr. Mohamed added that Barclays Kenya has partnered with Nakumatt Holdings, CMC and DT Dobie to offer their goods to customers.

Source : aibim

Is Confidence in Islamic Banking increasing ?

Effects of the worldwide financial crisis in the Arab stock market also began to be felt.  Order to find a way out of the crisis shortly before the Indonesian capital of Islamic Countries Economic Forum was held in Jakarta.  “Islamic Banking” Is it really a solution?  Peter Philipp’in news.

Gradually the Arab world and the start winding the financial crisis, the Saudi royal family, an aid package outlining responded: King Abdullah recently economically weak to support the family has donated nearly five billion euros.

A growing air of panic or at least greater than the losses might be concerns of the Arabs as well as the Iranians and other parts of the world in the minds of other Muslims, religion of the orders have been fulfilled if most of them probably could be prevented brought the idea.

After all, the Islamic world, a banking system based on religion in the state there are Islamic banks or financial institutions.  Anywhere in the world alone is not accepted as a valid system, this process, especially among the public is gaining an increasing popularity.  These institutions are mentioned in the annual percent from a growth 27’lik.

Is Utopia Is solutions?

Islamic banking system before the financial crisis we are living in a utopia to believe Do?  “Not really,” says Michael Saleh Gassner of this system of specialists.  According to the rules of Islamic banking institutions are primarily of interest prohibition.  This ban has prevented the way, ultimately sustainable crisis.

Moreover, in Islamic law is said: Every kind of financing the real economy should be interested in a transaction.  “The essence of the work done is what to look at carefully is required. Someone buying a house wants to term it as a sale is made. At first we used this system similar to credit here, even though ultimately what really is being done is to look at carefully,” says Gassner.

 

 Look carefully

Therefore, according to the rules of the Islamic financial system in the U.S. financial crisis triggers such as the mortgage crisis would not have done better from scratch.  There had been work done to look at carefully, in many cases, such high mortgages for borrowers (mortgage) payments are not in a position to be seen.

Mali krizin İran Körfezi’ndeki etkileri değişiyor: Dubai’nin, hızla geri çekilen yatırımlarla mücadele etmesi gerekirken, Umman’da krizin herhangi bir etkisi görülmüyor… Financial crisis in the Gulf of Iranian influence is changing: Dubai’s rapidly retreating investments have to fight, while the crisis in Oman have any effect on … not in the same way, the sale of goods does not occur, the service can not be right, and earnings can not be “free shops” that would be blocked .  However, these “free shops” as a result of capital efficient way to use such large losses or large profits in running can cause.

Interest prohibition

Just as in the interest of Islam, “the money handler” is prohibited.  Moreover, they are also extremely strict rules in question: for example, to the Sharia religious laws that do not comply can not be financed from companies: Pork prohibited to sell, of course, the same as porno and games of chance prohibited from trading.

In the last mentioned category included not only casino, international financial market speculation in the agenda subject to the same prohibition.  So you know the rules of economics in financial transactions, except those who operate them know about the formation of knowledge is not “financial products” that places into circulation.

Think a big problem here lies Gassner: “As a rule of ethics lack of a stronger U.S. economy in question,” he is in criticism.

Religious banks

Even in the Arab world, Islamic banking system alone is not a valid Gassner also know that of course.  Here in the Western system, ie the current credit and interest rates.  Islamic banking system in this country, but his character is not developed enough to win.

Among the public about the financial affairs of the Koran and the orders known banks are forced to bring religion and products suitable bid.  Especially to Iran in the Gulf Arab countries, Islamic banks, some of the money has already come 50s percent.

Bank Islam according to the rules of the concrete forms of work as what it looks like an example from Germany can be seen on: More in 2004, Sachsen-Anhalt State, an Islamic association’s official buildings in the Netherlands and decided to sell, then the same associations to state buildings and lease back here obtained shares sold to investors in the Arab world.

Islamic finance

The first Islamic bank to operate in the 1970s, hundreds of similar institutions around the world since the passage appeared.  Indeed, banks in the West, Islam and Muslims in the world market better able to enter the banking system for citizens to provide an acceptable “Islamic financing” i (Islamic financial system) began to explore.

The success of this bank, the Islamic world to the Islamic banking system depends on how quickly passed.  Michael Gassner in this regard is not very optimistic: “All things truly Islamic finance is very much not so easy,” said banking expert: “This is a longer time it will take, nor if there should also with all religious Muslims living outside there are people.”