One of the miracles of Islam are the rules of riba (interest, usury). Many students who for the first-time study these rules think they are a burden to the economy and question wisdom to why we exchange money for money in equal amounts and on the spot. Sometimes even ask if there is a place for such restrictions in a modern economy?
In this clip, we analyze the power of Islamic economic principles regarding the ban on riba by looking at the root causes of the Global Financial Crisis.
Please listen and share.
Subscribe for more content like this.
Want to see full video?
***Full video of this lecture is available here: https://www.youtube.com/playlist?list=PL648OdKhWVX80Fr9sjaJM7j4A8COfhhvm
Number of similar videos are available - see playlist Islamic Finance Clinic Course - new videos are being uploaded currently.
Instructor: Almir Colan
Connect with me
* Web: https://www.almircolan.com/
* Almir Colan's Facebook: https://www.facebook.com/AlmirColan.Page
* LinkedIN: https://au.linkedin.com/in/almircolan
* Twitter: https://twitter.com/almircolan
This man has no concept of the time value of money. The return on the houses is not money for nothing. The cash flow is equal the principal value of the houses plus interest which would be equivalent to paying rent. The people who buy the houses have to pay an additional amount of money because they are living in the house before they have actually purchased it (20 years rent).
This is what Jesus fought against in the temple
when he over turned the money tables.
He was defending The Debt Jubilee,,, debt forgiveness
and got crucified by the Jews who fought for Usury , interest on loans.
Debt Jubilee went back as far as 2 , 3000 BC. only for the people. not creditors or business.
And Original Sin is Debt.
Sharia picked up the pieces sometime after the year 600.
The ancients had a more sophisticated monitory policy
than the systems we have today.
But the Jews destroyed it. along with the Romans.
Now we have debt slavery creeping into western society. to get a univ. degree.
And what if,,,, when u r born you automatically enter debt slavery.
To get your diapers. xx.
Islam allows sins like murders, kill unbelievers, child marriage, halala murder ,taqqiya ie lies are sinful and 4wives, triple talak ,taqqiya ie lies are sinful as per INJEEL and lead to destruction of hellfire.
Lord Jesus will destroy Islam and all Muslims if they don't repent and believe in Jesus Christ who only forgive our sins. Quran is full of errors and scientific wrong Sun settings in pool of muddy water and semen is produced between ribs and backbone. false .
U take a loan out for £100,000 for 25 years.the £100,000 has devalued in 25 years.the value of £100,000 25 years on from now is probably £50,000.so why should bank to whom you are an unknown commodity,pay for you to buy a house, you are not the bankers son in law.and majority of people pay out their houses,however what ever few percent don’t,there house are repossessed and put on market,they get back what they paid and rest goes to bank,so let’s say the house has dropped in value,who looses out? The bank does.secondly when u say about selling half a million house to a waitress,the waitress knows She won’t b able to keep up with payments,so why go for a mansion and even if Shen can’t pay it back she only gets poor credit history which means she can’t take out more form of loans which have riba on them like credit cards.no other down fall to that.plus when you talking about so called “poor insurers” they won’t ever insure where they see a loss.they are a multi billion pound/dollar industry,so when they insure they know what they are insuring and are not stupid.also it’s fair to say banks lets u keep ur money use there services free of charge, they aren’t anybody’s fathers slave to do so.for eg there were no banks everyone would have money at home and people would b robbed everyday.
Brother I understand this is how mainstream banks work. How about the Islamic Banks? Are they free from riba? Because the amount you pay back is almost double but they don't call it riba. They say it's profit... Are they just playing with words and is the principal the same?
Don't listen to this guy, he is naive. The Quran bans usury (Riba), not interest (Fa'eda). Usury is excessive interest. The Quran actually talks about how to conduct loans in verse 2:282.
"O you who believe, when you transact a loan for any period, you shall write it down. An impartial scribe shall do the writing..."
In the Quran, interest is acceptable and is not haram. Anyone who says it is ignorant or naive.
For more information on Riba (Usury) go to:
I have some questions:
- Does dollars, euros and all the fiat currencies in the world are hallal , because all of them are backed from debt or debt related ( so interest or riba ).
What is the point of getting a hallal job or business and get paid with a riba currency ?
- Why the majority of scholar speak only about " don't borrow money from the bank it's riba " , and forgot that we are living in a worldwide riba machine ( federal reserve and worldwide bank system ), and all business are riba business or related indirectly to riba
- How can we talk about hallal business, without talking about getting our own currency and bank systemt to me it's an irony to talk hallal business without talking about a hallal currency and bank system.
I can give two examples:
- The majority of the companies in the world has debt ( Volvo, Amazon,Samsung, Apple, Tesla... even your electricity company) so when they create a product and sell it to you, (in a portion of the price you're paying back the debt so interest) even if it's a hallal products but indirectly related to riba.
-Some Muslim don't want to borrow money from the bank to buy a house even they have the power, they prefer to rent, but what they don't know that ironically in the rent they are paying a portion of it, it's for paying the debt (the riba. Because the owner bought the house with a credit from the bank)
The wisdom behind following a religion that we, the Jews, made up to counteract our previous honeypot made-up Christian religion and help us better hide among the goyim we conscripted to help slaughter the more uppity of the Jesus freaks.
The wisdom of Muslim countries being ass-backwards because the prohibition against usury:
1) Is diametrically opposed to capital growth and investment, which
2) Subsequently prevents observant Muslim goyim from attaining any truly meaningful economic power, relegating entire populations/nations to a permanent debtor status once
3) Their political classes find themselves with no other options if they wish to expand the Caliphate to please a god and a prophet that we made up to begin with.
Woman you speak of is my daughter. Probably best to learn manners and not make assumptions when making judgement - Allah said about suspicions against people and without knowledge: “O you who have believed, avoid much [negative] assumption. Indeed, some assumption is sin. And do not spy or backbite each other.” Qur’an 49:12.
I have a confusion Sir. How does Islam take into consideration the influence of inflation? the purchasing power of 100 dollar now is not same as that of future? So from that perspective isn't the lender losing money by providing loans if the transaction happens in 1:1 basis?
SubhanAllah, superb explanation. I really like it. Islamic Economic system is my favourite subject and I am fond of learning this.
1. Can you please share the link of complete lecture of this video and
2. Can you please share more links where I can learn Islamic economic system from basic.
Thank you Mr. Almir for this brilliant explanation that I appreciate so much MachaAllah! May Allah grant you infinite reward for these efforts!
Still in the aim of getting more insight about the practice of riba, as I have no doubt of the evil it can create. If I have well understood the angle from which you've explained the danger of riba, as per the given example, it is because along the process of creating this riba, the initiator(CDO seller) is somehow the only one who benefits from this process despite the situation of ruin he might put the other stakeholders into? What I would like to be enlightened of is, does that mean that if all customers in the initial CDO were able to pay correctly their respective loans(situation in which there would be no ruin, as I feel), would the initiator of the CDO have any reason to have customers pay the interest? Which I think is still riba. Thanks a lot once again !
capitalism creat intrest.
who rich persons are giving on non intrest basis.
Allah says in Quran"spend to needy your extra sourses"
But extra sourses propery money they r making a sourse of income.
( read Maulana maudodi islam and riba"
As a muslim, I have to criticise the video. The title and the contents of the video were two totally different things. The title states that the video will provide a comprehensive response as to the reasoning why riba, usury, interest is haraam. The video instead went on to explain the banking crisis of 2008, that's not what viewers came for. 18 minutes wasted (fair play there were some words that related to the actual title), didn't satisfy what I came for.
As an economics student in the UK, its extremely tempting to grab out an take some interest money - very tempting! But, its important to stay on the straight and narrow. Its a shame that nowadays in the UK none of the major banks offer Islamic banking anymore, they used to - Lloyds & HSBC were popular for it.
Now, I sit collecting interest on a student debit account (Lloyds) and am not sure what to do with it. I get a little money every 3 months from it and then give it to charity. There honestly, isn't much options for me. I have researched and looked for Islamic Banking accounts but with no avail. If anyone has any suggestions, tell me...
Islamic banks use murabaha all the time - it is deferred mark up, not spot 1:1. The prophet's condemnation of riba was to stop the exploitation of the poor by unregulated money lenders. Banks did not even exist at the time. This has nothing to do with interest in modern regulated financial markets. Read scholars Fazlur Rahman and Abdullah Saeed.
Very clear explanation! so people don't participate to this system of Riba !! Allah said that it's like going to war against Allah and the prophet if you partcipate to this !!
if you can't buy then go rent an appartment as smal as you can easily pay using your own money gained hallal way i.e your effort. if this system didn't exist the house prices won't increase infinitly because none could afford it. So prefer the way of God and live in small appartment rather than entering in war against him.
O my brother, I love you for the sake of Allah and Deen of Allah. what an amazing lecture and how simplified it is. May Allah grant you Jaza-al-khair for all this effort. I am going to watch your other videos as well cuz I have some questions regarding forex trading and some other finance issues. If I find those great if not will contact you for your opinion.
What's even weirder, is that 1B doesn't exist at all! It's just digital numbers. Thin air, no printed cash. Selling nothing for cash. The gov launched for example total 3 trilion in circulation, banks lend it for 5 trilion returns. Where are people going to get extra 2 trilion when it doesn't exist? Next they loan your money to other people it's not even their money. You deposit exmp 1000 and they loan it to ten people at the same time and expect returns from all of them!
The removal of Riba only will occur when people start to believe that removing PRIVATE banking, in public policy, is the best option. One government/state bank within a country is the best option if anyone wants to remove RIBA in society. Privatization, private banking, through competition in the financing market, is creating the IMPETUS for ... RIBA (financial interest). The communists believe in the same thing with exception of additional things.
Assalamu Alaikum warehmathullahi Wabarakaatuhu, dear brother, i am an emplyee bringing home of Rs80000/-,,,,will be getting till my age of 60 years, i.e 5 more years , as i am 55 now,i am in riba paying around 40000/- for the loan i took to overcome the loan to start the industry,but to various reasons it went wrong and now i am in service doing job,,,how to come over this issue,to remove this loan amount of 2500000/-, and lead the life without paying riba. please suggest,,,,,
I've seen this in America it should be illegal! The problem is the politicians do this with property., Also it would have explained all the direct energy weapons via satellite, burning down new homes on Target in the United States... Missing one section of homes and burning down another... Also the geoengineering of direct weather weapons creating hurricanes and steering them via low energy frequency antennas that are now flooding all of the homes along the US Coast., On all sides.. So they could benefit off of the insurance since they couldn't benefit as much off the derivatives... He's Rich f****** in America have ruined our country like a bunch of dumbasses!
The key sentence of this whole explanation is " these people are very clever, they knew that this is going to happen"
This have nothing to do with interest and reba, there is no rule is islam that prohibit 1:0.7 (selling cheaper or as you did put it, negative interest ) this is an elaborate scheme create with the intention of sealing.
Let say we follow the islam rule of lending 1:1, the economy will collapse at the same scale if the borrowers are low quality and were not able to payback there is no way to get it fix.
The truth is that the prohibition of interest (reba) was created in the time of mohammad just to counter the Jews of the time as they were (as they are now) merchants and businesspeople. mohammad needed to strip them from this advantage and engineered this rule to take away their advantage.
Ever heard of hyperinflation? You do realize that free interest rate would increase the money supply, thus driven out/eroded the value of money faster with compounding inflation due to higher CPI? This is basic economic 101. That's why the freest interest rate scheme is just a fancy dream. If it indeed truly successful, why would Islamic bank still push derivatives/innovation of interest rate? Yeah, they don't call it interest rate, but called it as "hiba" or profit rate. Same shit different days.
Thanks so much for making this video I can see how a man borrows money to innovate and or earn more from his labour enabling him to pay back the principle and interest and meaning that he can move on with his work more efficiently to the benefit of him and the whole society is pure evil. God is truly great, now what did he say about war in the name of Islam and propagation of a backward mentality including taking slaves and taxing those who choose believe alternate beliefs? Clearly the current economic system needs changing not sure going backward to the 6 century is the answer though unless you are inbreed and have an IQ of less then 80. Peace brothers.
Abdullah Almothnib I have thought about it at length. But briefly for any society to progress it must evolve. If it dose not then it will become less productive and as a result will gradually decline. During the decline people will question the cause of the decline. Some will claim an imagined past never was and tell the people the decline is because the changed and call for a return to previous ways. When their policies fail they find scapegoat to blame using half truths to win the argument. These same people while enjoying the luxury of progress, come up with various argument (involving half truths) to make stupid people act against there own best interest. Now if what they say is true the society will prosper, if not it will be destroyed. Look around what do you see. At the end if your conformational biases means you fail to accept the evidence, you have your beliefs I have mine, but I reserve the right to defend my belief and propagate it with the vigor as you do yours(is that aloud sharia). As who wins this argument has very real consequences.
I think you should give it some extended thought, because you are missing some pieces of the puzzle. Basicaly, Islam , while taxing non Muslims with a small tax, it does that for a return that non muslims get their full rights without having to serve in the in the army which protects the nation with its all citizen including non Muslims. Second, those who can not pay it are exempt and can be even eligible for welfare if need be. Third, in islam there is no income tax which everybody pay nowadays, and which is much much greater than Jiziya that non Muslims pay .So, in Islam, according to the Sharia law, you will be saving a lot of money that you are paying now under the secular laws. Fyi, the Americans and the Europeens who work in the Gulf countries dont pay income tax for the same reason. Where is the slavery now ? I think the slavery is what the humanity live in now, not in the "Shariya" law. I hope the picture is clearer now. And I dont mean it in bad way, I undesrtand theree is a lot false advertizing about Islam in the media nowadays and I assume you know wny now, dont you ? to deter people like you from investigating the matter and finding out the practicality, genius and justice of islam. Good luck my friend.
So the sheikh here is saying that trading time for money is Riba, so the alternative is trading product for money.
i.e the bank buys the house for cash (no riba) for $100K, then sells it to you, again for a $100K over 20 years (5K a year in capital repayment, $416/month), and then also for the bank's profit, rent it to you at market rates for your area, maybe another $500 a month. Total cost to you is $916/month. As you own more and more of the property, the share of the market rent reduces to 0.
If you sell part way, then the bank takes a proportion of the profit. ie, if you are 10 years through the mortgage, then the bank owns 50% still. Thus if you sell the house for $200K, you get $100K and the bank gets the other $100K. Hmm so you lose out on the exit side.
It doesn't actually solve problem, as you need rich individuals to fund the system which still concentrates wealth....?
Really good point, the system either need rich individuals to fund the system or tax infidels or they will need to raid and conquer other countries and take their wealth and inject it into the system, thus the collapse of islam once they stopped expanding.
It’s why it’s called ‘milking time’ or ‘the fishing trip’... we have become cattle! They have a vested interest in the houses foreclosing/collapsing because they’d get the interest now through insurance and not in the future... so it’s even more lucrative for them... it’s a ponzi scheme! However, if one allows the banks to fail and doesn’t promise to bail them out, “too big to fail” etc etc then I do think it’d kerb the speculative nature of more recent finance! I have no problem with fractional reserve banking, no problem with fiat currency and no problem with interest (money now is more valuable than future money) so long as the banks are allowed to fail and not in bed with government and NOT in the business of printing money/quantitative easing... that’s the problem - the banks took over, federal reserve etc... governments should print the money and banks should manage the money... governments should not bail out banks!
But doesn’t Islam make infidel pay taxes? That is not o.k! So I can’t believe in Islamic banking, from a religion who would tax me in another way.That is not honorable.Why say this is honest? Taxing non Muslim, because they are not Muslim, that negates my belief that Islam is fair concerning money..It undoes what you are trying to prove, that Islam is fair in money.You tax non Muslim, That is cruel and dishonorable.It is not a humane action towards others that is why you can’t be taking as honest.You want people to invest in your banking? So be honest and tell people you will tax them for not being Muslim and humiliate them, why would Holy people do such thing? No excuse, you hate non Muslim.You are told to harm other people.It cannot be justified only by belief in revenge.This is not mutual cooperation.This is forced taxes to hurt other people.Common sense wrong.
He explained what happened during the financial crisis but didn't explain how interest played a role. Banks are greedy. No question about it. But the fact is nobody is willing to lend money for nothing because of time value of money and associated opportunity cost. Without no interest, there'll be no capitalism. With no capitalism, companies won't be able to raise money and you won't have Youtube to post this video on.
So how will less fortunate people buy houses? Will they have to pay rent lifetime? By this system people pay less than the rent in most cases and live in their own houses which is a benefit for these people I believe. The problem in your example seems to be a scam done by the greedy first level bank to sell a high risk product with a rating of AAA. It is the corrupt banking system which causes problems. If precautions are taken against, this problem can be solved. Besides, the bigger problem here is actually the banks do not give the money of their own. The digital system and governments allow them to create these huge amounts of money out of thin air by only digital assignment. So basically, banks print money as they issue credits to customers. If only this was changed or practised in a much more secure way, Most of these risks will be resolved. When practised correctly, this system gives a chance to the low income earners a chance to buy their houses while probably they will never have that chance otherwise, even though they pay much more for the rent. Plus, allowing people to buy houses with the support of credits will create further motility in the construction economy which would be at a much lower rate otherwise. We are not at the old good times where you could simply pick an empty land and build the house of your own and surround it with a nice fence. And nowadays, we do not use gold and silver which are on their own merits ever valuable. There is a thing called inflation with the current monies we use. So there must be a cost of this service at least to cover this inflation loss even if the banks were no profit organisations.
All man made creations have the possibility to be used for evil this is why we have been given clear signs and rules for every aspect of life. Islam is perfect if followed correctly and it's impossible to be a bad human if you follow it correctly but unfortunately many Muslims don't me included and we set a bad example. My wife and I refuse to use loans or credit cards as it's forbidden and is just another distraction from living a meaningful and righteous lifestyle. Our creator has provided everything we need and evil is doing its best to make this world full of distractions and things that appeal to our egos.
They are truly free at least
The fact that many are ex-services who after giving their reality to their country are dumped with no fucks given is beyond heartless
Warms my heart to see such compassion from our dear leaders as they make it illegal to be homeless...
Brokerage fee amount by transaction value 1.
Trade online and settle your trade to a CDIA or CommSec Margin Loan 2.
Trade online and settle into a bank account of your choice.
Share Trades over the Phone 3.
CommSec Share Packs online 4.
CommSec Share Packs over the phone 4.
Trades requiring settlement through a third party 6.
1 For GST rounding reasons, the final brokerage fee may vary from the stated or expected brokerage fee by a couple of cents.
4 Normal brokerage will apply when a stock acquired through CommSec Share Packs is subsequently sold.
5 Amount per share will be noted as brokerage on each confirmation issued. There will be no substitution should a stock have a trading halt placed on it.
6 Includes third party Margin Lending, and where the Commonwealth Bank exercises its rights under the loan Terms and Conditions.
Other fees may apply. Please see the CommSec Financial Services Guide.
Open a CommSec Share Trading Account.
Buy and sell shares using a CommSec Share Trading Account with our cash account - with it you can seamlessly settle trades, transact and earn interest.
Buy and sell shares using a CommSec Share Trading Account with your existing bank account.
Frequently asked questions.
Shares held with another broker.
For the transfer to be successful the name and address registered on your issuer holdings must match your CommSec account.
Your request will be completed within 72 hours.
Shares held with the share registry To transfer shares held with the share registry into your CommSec Trading Account you need to complete an Issuer Sponsored Holdings to CHESS Sponsorship Transfer Form.
Your request will be completed within approximately 48 to 72 hours of receipt.
When you have bought and sold shares on the same day and the next trading day, your payment may be partially or wholly offset. For more information refer to the New Client Guide.