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| Posted By: Joe Z Posted On: Aug 31, 2009 Views: 1815 | Still on Islamic Banking I could understand and empathise with some of our citizens leery of any connotation with the word Islamic Banking. The notion that Nigeria is a secular society has been tested in the recent times.This adds more to the suspicion of anything having to bear the name Islamic and in this case Islamic Banking system/institution in Nigeria. Obviously, it is natural for one to overtly react, especially when a nation like ours has been going through trying times with the inception of Sharia Laws, religious intolerance which has resulted in lost of many lives and properties in some parts of the country and the unsettling issue of Nigeria's membership in OIC. Below is an overview of what I hope the Islamic Banking entails. This was culled from a publication; The indispensable notion of Islamic banking is furthermore identified as 'interest-free banking'. It is operates on the crucial principled values with merely lone major distinction that Muslims arent supposed to give or accept interest. This does not connote n any way that selling tricks or money spinning activities are not promoted. All of these activities are considered fine if they dont happen to involve any kind of interest in the dealings. In order to execute this principle, pecuniary devices have been launched by the Muslim financial institutions to gratify these necessities. Therefore a lot of equity financing is used instead of the debt financing. In order to keep their clients satisfied, interest free banks usually give a share from the bank profits instead of the interest on the savings account and this is usually up to five percent. Why Was Islamic Banking Introduced? The contemporary depository structure was initiated into the Islamic countries by the end of the nineteenth century at the time when a lot of these Muslim countries were performing pretty good on the economic as well as the political front. These financial institutions originated branches in the major cities of these countries in order to plunge into the business arena. On the other hand, these branches were restricted only to the capital cities and hence the other small cities surrounding these populated places were often ignorant of this banking system. Then the major local trades ignored the traditional banking system in order to adhere to the religious norms associated with Islamic banking as dealing with other banks involved a lot of interest and it was an idea totally ignored by Islam. Nevertheless, the commercial banks were much more organized when it came to banking aspects like opening new accounts and transfers. Islamic banking was more effective with affairs like current accounts and all those aspects that did not involve interest in any form. The latter half of the twentieth century saw a banking revolution and at that time it came really impossible to avoid the commercial banks. These banks made it a point to venture into a lot of daily communities and forced themselves into a lot of businesses. This is exactly when the Muslim experts identified a want for a banking system customized for the Muslims based on the strict principles of Islam. Such kind of Islamic banking has been around for more than twenty five years however, such form of banking was also tried earlier but did not turn out to be as successful as this one. There was one type of bank in Malaysia that implemented this model and then there was one that was established in Pakistan in the forties. Both these banks couldnt survive for long until the seventies that also brought about a revolution in the Islamic form of banking. An inter governmental bank called the Islamic Development Bank(IDB) was formed along with the Dubai Islamic Bank by a group of individuals across various countries. Consequently, Islamic banks were formed in countries like Egypt and Sudan. Since then, a hundred and twenty five Islamic institutions have come into existence and countries in Western Europe, Asia and North America have started accepting this model of interest free banking. The Present Policies of Islamic Banking A majority of these Islamic banks agree on three categories of depository accounts which are savings, investment and current. At the same time as the number of current accounts has progressively turned down, the other two kinds of accounts have multiplied. This clearly shows the escalating confidence of users into this type of banking. In a lot of these banks, the depositors usually let the banks use their money and in return get a guarantee to obtain the full amount of deposit. These banks invest the money into several short term projects that are beneficial to the bank and the Muslim community. Besides these accounts there are also accounts that are called the trust deposits, which simply mean that the account is not under any restrictions when it comes to depositing or withdrawing funds. Furthermore there is the joint investment account that allows the depositor to participate in continuous investment plans of the bank. Such accounts typically receive a percentage of the profit from the bank. The Islamic banks inculcate various methods of possessing assets starting from investing, trading and lending. The investing is known as Musharaka in which a bank would emulate another body and set up a joint venture with both parties agreeing to profits and losses in equal degrees. Trading is called the Mudarbha where in the bank provides money or the capital and the independent identity offers skills or labor. In this scenario, the profits are shared equally by both parties but the losses are incurred by the bank only. The third form of obtaining assets is through lending and financing based on an approximate rate of return where in the bank estimates the project by itself first and then goes on by quoting a rate that can work out the best for the bank. Pitfalls Even though Islamic banking has gained acceptance in the major continents of the world it still need to overcome some of its shortcomings. To begin with there is a scarcity of skilled professionals when it comes to interest free banking. As a result the lack of proficient workers has restricted the growth of Islamic banking. The existing banks should come up with the training and the academic curriculum required in excelling this particular financial industry. Secondly, there is a sheer lack of specific accounting standards. Accounting is considered to be the most important aspect when it comes to banking and there are standards yet to be customized in the interest free format which brings in a lot of difficulties for the Islamic bankers. Lastly there is a requirement to set specific credit analytics when it comes to interest free transactions. However, with the kind of acceptance with Islamic banking, it will be shortly adopted by most of the commercial banks of the present day. |
| Posted By: ogbori elemosho Posted On: Aug 31, 2009 Views: 1824 | RE:Sanusi and The Northern caucus Random or, do i say, selective investigation and justice, simply said, suggest an agenda different from the speculated motives of putting things right in the sector. Sanusi's intention is still questionable for now. There had always being a form of islamic bank (bank of the North) thats no issue |
| Posted By: Oluwole Posted On: Aug 31, 2009 Views: 1774 | RE:Sanusi and The Northern caucus A Big thank you to GOC for stating facts that is void of ethnic sentiments. The Islamic banking system should be welcome and embrace by all and sundry. This is an aspect of Islam that is really encouraging. Im not a Muslim but I know what an interest free loan mean to business. This Islamic banking system is similar to Jewish loan system. The Jews are the most prosperous in United State. If you know Beverly Hills inside out you will agree with me. They encouraged themselves with interest free loans that help a lot of Jews to thrive. This loan is so encouraging that we even have a lot of Nigerians in America using the loan to go to school. A friend of mine in Los Angeles is a beneficiary of such loan. Her loan was granted with soft repayment term. Islamic banking is beautiful, let us all encourage it. Soludo should be given some big knocks for failing in supervision of our banks. The whole scenario had rubbished the good name he made for himself. If we must say the truth, the rots in banking sector did not come overnight. His whole mega economy drive is just like an abandon project. Start it well and mess up the completion. How did Soludo think he can make a mega bank to function in country with little or no energy to encourage production? Now they raked in the billions which lay fallows in their vaults. The next thing is to loot it since our economy cannot support such fund. Let us just give ourselves some break and tackle the CEOs. If we must apportion any blame, Soludo is the guy thats liable. |
| Posted By: G O C Mpamugo Posted On: Aug 31, 2009 Views: 1789 | CBN and Economic Saboteurs. We have been bombarded in the last three weeks with various statistics on the state of our economy and the rot created by the sacked Banking CEOs. Was it not the late Chuba Okadigbo who stated that "Statistics is like the bikini, what it shows is revealing, but what fails to show is the thing that is quite intriguing!". It has been alleged by CBN/EFCC that one of the detained CEOs transferred a whopping GBP£1.7Billion to the UK in one transfer. This equates to N425Billion if we use a conservative exchange rate of N250 to GBP£1.00. If this is true, we are seriously in trouble and explain why the Naira continues to depreciate. We may have to adopt a policy almost similar to the Chinese system of dealing with economic saboteurs. Lock them up and throw away the keys (if found guilty by a competent Court of Law). |
| Posted By: G O C Mpamugo Posted On: Aug 31, 2009 Views: 1763 | Re:ISLAMIC BANKING, A NORTHERN AGENDA There is nothing wrong with Islamic Banking (as long as it is not owned by FGN). From the little I know about Islamic Banking, it operates similar to Micro Finance Banking system originated by one Professor(cannot remember his name) in Islamic State of Bangladesh. With Micro Finance Banking which has always been with us in the form of contribution but now taken to a different level; the customer or trader makes a daily deposit of say N2000 and at the end of the month the bank takes N2000 as commission or charges for looking after the customers money. Interest is not paid for looking after the customers' money. The system is good for some customers/traders who may not have the time to visit Banks to make daily lodgings since the Banks sends its Staff to collect the cash from the customer. It is a "win-win" situation for the one man Sole trader and the Bank. There are Islamic Banks in the UK but nobody hears of it. So, my fellow Christians - I do not usually do God - we must not panic. Islamic Banks may help to bring interest rates lower which is much needed for our economy to be competitive. Peter M: Take it easy my brother. We would only get worried if Islamic Banks are to be owned by FGN. |
| Posted By: El dorado Posted On: Aug 31, 2009 Views: 1762 | Let Justice reign Our aims should not just be to seek the most comfortable life possible, but to also strive to right the wrongs we see. |
| Posted By: Edidiong Posted On: Aug 31, 2009 Views: 1787 | Amnesty, no way the pre solution is to remove the imunity cluase from the constitution not the amnesty whatsoever. |
| Posted By: Ukachi Posted On: Aug 31, 2009 Views: 1804 | Amnesty If all other things should fail in Nigeria,amnesty shouldn't,if it dose,niger delta & nigeria enterly shall face militant(born again) blood shade in broad day light - heaven will get loosed,no hiden place 4 those who are politicking with niger delta misfortune. |
| Posted By: Tunde S Posted On: Aug 31, 2009 Views: 1768 | Nigeria Banking Sector & Nigeria Economy! Hmmmmmmmmm! Hmmmmmmm! Hmmmmm! Quote of the century "Prof Soludo and Prof? Nweala (of the world bank) are the best brain behind President Igbochukwu Obasanjo economy success"- Nigeria Igbo community. Comment: May God help us. |
| Posted By: SADNIGERIAN Posted On: Aug 31, 2009 Views: 1718 | KETTLE CALLS POT BLACK Once U.S and UK equivalence of the issues being experienced in Nigeria is cited, the writer arrogates all sorts of things to himself. Perhaps there is nothing more to write about. Otherwise, how could any sane man talk highly of Sanusi's bid to float Islamic banking in Nigeria that is religiously volatile? Is there no better approach other than blatantly canvas for Islamic bank? And a central bank governor for that matter? The comments I posted earlier did not condemn Sanusi's sack of the CEO's or their arrest. Are you sure you are not at your wit's end? When Sharia was dangled by Yarima of Zamfara, people like you, with the special gift of analytic and broadmindedness, saw nothing wrong with that. Do you have to wait until its too late to defend what you believe in? The day you discover you have been the fool, please do write again to acknowledge your foolishness.Stupid malam. You could not hide that you are a Muslim. |
| Posted By: SADNIGERIAN Posted On: Aug 31, 2009 Views: 1696 | KETTLE CALLS POT BLACK Once U.S and UK equivalence of the issues being experienced in Nigeria is cited, the writer arrogates all sorts of things to himself. Perhaps there is nothing more to write about. Otherwise, how could any sane man talk highly of Sanusi's bid to float Islamic banking in Nigeria that is religiously volatile? Is there no better approach other than blatantly canvas for Islamic bank? And a central bank governor for that matter? The comments I posted earlier did not condemn Sanusi's sack of the CEO's or their arrest. Are you sure you are not at your wit's end? When Sharia was dangled Yarima of Zamfara, people like you, with the special gift of analytic and broadmindedness, so nothing wrong with that. Do you have to wait until its too late to defend what you believe in? The day you discover you have been the fool, please do write again to acknowledge your foolishness.Stupid malam. You could not hide that you are a Muslim. |
| Posted By: Akpasubi Emoesi Posted On: Aug 31, 2009 Views: 1728 | Sanusi PLEASE ignore fickle-minded Nigerians. I do not blame confused Nigerians who suffers from delusion with Mallam Sanusi's reforms. After many years of misrule, corruption and vote of no confidence on governments of Nigeria in the last 49 years, it is difficult to know when something good is about to happen in Nigeria because their memories is overlapped with skepticisms. Do not be deceived, there is no way Nigeria can be Islamized. If your guess is as good as theirs then I personally would give my life to protect what I believe in. There are millions of Southerners who would die for what they believe in. I am still very optimistic that Sanusi is not planning to hatch Boko Haram ideology in Nigeria. He must do what is right for Nigeria. My observation about Nigerians is that most of you according to Erastus Ogunti have not got the analytical mind to interpret the meaning of real life situations inspite of your academic qualifications. Nigerians are fickle-minded people, their mind changes like a chameleon, they do not apply common sense in most occurrence. Islamic Bank is not the only Bank in Saudi Arabia, you have many American, Dutch, Swiss and British Banks as well. You have the HSBC, ABM AMARO, etc. So what gave you the impression that the Islamic Bank would be the only operational Bank in Nigeria? And what also gave you the impression that Nigerians who do not intend to bank with Islamic banks can not withdraw their money use other non Islamic Banks? Dissecting the situation before us analytically; 1. Has the big five banks break the banking and leading rules? 2. Were the debtors of these banks paying their loan as scheduled? 3.Did the CEOs knew that the banks were leaving on borrowed time? 4 Do you think Sanusi Lamido Sanusi has don't the right thing by blowing the whistle on the appalling activities of the banks? 5. Or do think it would have been better for Sanusi to cover up this horrendous financial crime that were being perpetuated by the banking industries? 6.What is the northern agenda here, when those declared wanted and arrested are Nigerians from all ethnic nationalities including the northerners? 7.Would you have raise the same motion of Northern agenda if Madoff the 70 years old American banking fraudsters sentenced to 125 years was a Nigerian? Many Nigerians have eyes but they cannot see, they have ears but they cannot hear, they have mouth but they cannot speak the truth, they have nose but they cannot smell a dead rat in their bedroom. In the united Kingdom or America, you couldn't borrow billion of pounds or dollars in the bank without repayments over a long period of time. Agree that there were banking crisis in this countries due to reckless lending and awarding of stupendous bonuses to bankers then the government through the appropriate authorities has imposed stricter laws to stop this unethical practices from happening in the future. In Nigeria, when actions are taken to prevent similar situation Nigerians out of their stupidity and retardedness would start to tag it as Hausa Agenda or Igbo agenda. If Nigerians cannot see beyond their nose, then I would suggest that they are very comfortable with the way things are in the country. They are very confused and cannot dissect analytically that we are being ruined by a few people economically and politically. Sanusi has done nothing wrong. We are living on other countries credit already. We are finished as a country. There is nothing left in the national treasury. The national treasury is in the pockets of individuals like Otedola, Igbinedion, Odilli, Ibori and many others; these are the same people who bought millions of shares in the banks and they went there and collect their money back in form of loan that they never intended to pay back. They are the same people who own the press in Nigeria and they are the same people who are confusing Nigerians that it is a northern agenda. Can't you see? Are you blind? |
| Posted By: Camillus Stevens Jnr. Posted On: Aug 31, 2009 Views: 1258 | Sanusi and The Northern caucus They are it again.These folks are no doubt living in another planet.They are still struggling with the fact that things are no longer the same.President Yardua and the northern elements/caucus never hid their disdain for Charles Soludo.One of their first priority was to shove Soludo aside. The reason for such hatred was no far fetched,Soludo erased the Islamic inscription from the face of the Naira and gave it a national outlook. Now,Sanusi and his cohorts want to Islamise our banking system.They are in the process of rewriting the "Washington consensus". There is growing concerns that the Washington consensus is not the best option but it will however remained the only option in the forseeable future.What most analysts are calling for is a newer and stronger emphasis on its implementation.Countries like China and India are not students of the so called Islamic banking system,yet they emerged stronger than all other economies.They embraced market economy but with greater government oversight. We should and must not allow Sanusi and his likes to have their way.The signals coming from Northern Nigeria is worrisome and all welmeaning Nigerians must say no that. In the eyes of the world Nigeria is fast becoming a failed state,eventhough on the surface it appears otherwise. |
| Posted By: OLANIYAN IFAYOMI WILLIAMS Posted On: Aug 31, 2009 Views: 1283 | activity in futility!! alas, the siuation in the counrty is not one to write how about. the amnesty programme, though at the inception migth meant well for the need of speedy development of the niger delta region, but the unfolding events have shown that certain politicians have hijacked the whole process. also certain militant leaders are now using it as an avenue to enrich their purses at the detriment of others. if its true that the Federal Government is sincere about the need to address the problem of degredation and infrastrutural decay in the region, therefore its high time we started seeing real committment on the part of the government in the areas of construction of roads, schools, power,industries to mention but a few. come to think of it: paradoxically, a region that contributed morethan 85% to the country's total revenue is wallowing in abject poverty! FOR THIS WHOLE ACTIVITY NOT TO END IN FUTILITY, OUR LEADERS HAVE GOT TO BE PROACTIVE IN ADDRESSING THE ISSUES OF NIGER-DELTA. |
| Posted By: Peter M Posted On: Aug 31, 2009 Views: 1224 | Re:ISLAMIC BANKING, A NORTHERN AGENDA For once,i have been deceived by the elite class of Nigeria thieves.How would have known that Malu Sanusi didn't take that step of sacking all the criminals in the banks in good fate?Sharia bank coming so soon has suddenly blwon open the chicken yash.So,Nigeria has deteriorated to the level of playing games with people sweat in the name of tribalism?Whicj script is yara and now Sanusi following?Time has come for all Nigerians who love one Nigeria to rise up and fight these mallams from the government.Better,let us call for regional system of government.This is the time.We can't just continue to keep quiet while some cabal are destroying the nation.No matter the reason they gave for sacking those thieves(CEO and MD),i don't give a damn anymore.We can't sell our banls to the arab.If we have to sell our banks to foreigners,then we can as well sell Nigeria,NNPC and transportation to foriegners.No this Sanuso can't happen.We need a quick revolution.Nigeria!Nigeria!!Nigeria!!!.This is not the time for silient |
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