The Dangers Of Riba

Extensive research has determined that the banking industry is in an unstable state. The industry’s profits have

= = = The British banking industry has come under extreme scrutiny over recent years and it is likely to continue during the foreseeable future. The perceived anti-competitive nature is as a result of

Islam is more than a religion, it’s a culture, and as such has an effect on political, social, and economic aspects of life—this is especially true outside of the Western world. Followers of Islam believe in full submission to God and this submission is practiced in the secular realm (Taha, 114). Of the five pillars of Islam, one (the zakat) has a direct affect on economic policy and ethics. The culture of Islam has shaped economic and business guidelines In the Islamic World and continues to do so. Cultural ideals attributed to the Qur’an or the Prophet Muhammad, have been a vital source for economic and business practices that have helped to shape the history of many Islamic nations, and are guiding the creation of policies

Several historical events played a vital role in what has evolved to how we conduct research today and just as important, how the participants of such research are shielded and protected against the consequences that may be experienced as a result of these studies. We live in a world that is continuously changing and as we move forward, it is past experiences that influence how things are done in the present, and what may become in the future. The Institutional Review Board (IRB) exists to protect research subjects and ensure their rights are safeguarded and protected. This paper will discuss the role of the IRB and the protection of human subjects, the dilemma of societal advancements versus its cost on human subjects and the role of leadership in the IRB.

A rule making body issues authorative shari’a auditing standards for all Islamic banks and other Islamic businesses and it will be the most effective way to eliminate problems within the Islamic economy. The most effort to develop a body of consistent standards for shari’a audits has been undertaken by

Similarly the selling of barley for barley is Riba except if it is from hand to hand and equal in amount, and dates for dates is usury except if it is from hand to hand and equal in amount.” (Umar). From an economical perspective, what the Prophet of Islam is referring to here is the idea that only the actual value of dates should exist in any trade transaction. For example, a bank giving out a loan for 100,000 dollars with an interest of 10% means that the 10,000 interest to be paid does not actually exist in the economy and hence to the prophet this is considered riba because the bank is gaining money out of nowhere. In the Sharia, the modern day solution to this banking issue is Islamic banking which offers; “..more just and equitable distribution of resources; more responsible and profitable lending due to the necessarily closer bank-client relationship; less volatile business cycles; and more stable banking systems.” (Evans, 1987)

This Report enforces the private institutions to uphold a certain ethical standard in regards to human subjects research (HHS.gov, 1979). The APA is only entitled to live up to these principles set by the commission, but not entitled to do any follow up investigations of their biomedical research to ensure, develop, and uphold their biosafety and biosecurity of their medical and human subject research. What is interesting about these two policies is that both NIMH and APA must enforce the Belmont Report by law, but since the NIH is a government institution, it is supposed to live up to the new criteria for biosafety and biosecurity. These differences of the policies of biomedical research between governmental and private institutions can be

Our current financial atmosphere is keeping on constraining medicinal services associations to assess operational efficiencies. Boosting benefits, or if nothing else not working at a misfortune, has long been at the cutting edge of business destinations. Not very many associations can make due over the long haul without meeting their uses. Hazard administration is commonly a cross breed capacity crossing over various controls to lessen the rate of authoritative misfortune. Exercises can be proactive, endeavoring to avoid or moderate a misfortune or responsive as it were, harm control. Proactive danger administration may maintain a strategic distance from a few misfortunes and costs that could some way or another effect your primary concern.

The prosperity and peace of a society much or less depends on its economy. While for the smooth running of both, there are several instructions in Islamic Shariah and allows what is right and forbids what is wrong. When we talk about financial issues, Islamic Shariah strictly condemns Riba. The question may arise why Islam prohibits Riba? While it was already in practice before the advent of Islam and still it is a part of different economic systems throughout the world. It is simply because Islam gives respect to human beings and condemns all the attempts that are harmful and disgraceful for humanity. Therefore, Riba is not only forbidden in Islam but economic experts are also in search of its substitute. Since borrowing on interest rate creates several issues including: less efficient allocation of resources, indebtedness, unemployment and economic instability. While in society it causes injustices, inequity, poverty and imbalance etc. In this paper we are discussing how Riba causes imbalance in the society and instead Riba what Islam demands from its followers.

Normally, each bank tries to attract competitors clients by lower financing, preferred rate and investment services. This market is in the stage who could offer the best product with fastest service at reasonable price however this also causes bank to experience lower margin or return on asset (ROA).

Main competitive pitch of Islamic banking is in Sharia compliant and interest free. But the real business of Islamic banking is producing profit.

Weak underwriting standards, unsound risk management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in the system.

Revenue focus. Any lending model can only succeed with the injection of adequate capital. The focusing of stagnant funds on revenue effectively removes funds that could be used for lending. The challenge will be to have the lender forego a profit yielding investment. Islamic scholars have identified this predicament as a negative attribute associated with interest; it prevents the creation of interest-free loans as the lender expects to realize a gain (Al-Fawzan, 2005). The

Becoming an expert in Islamic economics and finance field is one of my long-term goals in life. I started to organize and made a plan towards achieving that dream since senior high school. The concern towards Islamic economics and finance concept, and its application for society and the country began when I was reading a book entitled Islamic banking-theory and practice. After finishing reading the book, my interest in Islamic economic and finance topics rose and strengthen my own determination to become the expert of Islamic economics and finance. The main principle of Islamic economics and finance which offers the just and ethics in economic activity, poverty alleviation through income distribution mechanism, and prevention of economic and

In addition, when the lenders or financial institutions practices riba-based system, it will give a great blow to the poor or the needy due to the compounding effect of the interest. Lending riba-based loans will exploit the poor as it will result in more poverty and reducing their future earnings. This is because the longer the borrowers cannot pay the loan; the higher amount of loan will be due to its interest. On the other hand, riba-based loans make the rich lenders richer because they gain the benefit by advancing their extra money based on interest from the needy, and this will increase their future earnings. This situation shows the rich become richer and the poor become poorer. In the other meaning, riba will create wide gap between the rich and the poor, where finally the situation will divide these peoples into classes which can occur inequality and give negative picture on the social aspect of a country.