!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd"> Streamline Training & Documentation: Update on Islamic Banking

Thursday, April 30, 2009

Update on Islamic Banking

As a follow-on to an earlier post discussing Islamic banking, I'd mention a helpful article by Jeremy Harding published today by the London Review of Books.

In "The Money that Prays," Harding explains in accessible terms the issues that sharia restrictions on banking raise, and how they are addressed both by Islamic banks and by some conventional banks that have begun to offer sharia-compliant produts. He also talks about sharia-compliant insurance and the distinction to be drawn between engaging in lending and engaging in trade, the former being problematic for Muslims, and the latter not (to the extent it is not entangled with lending activity).

A key point is that banks following Islamic principles have been relatively insulated from the current turmoil in the world's financial markets.