Sharia Finance

[Literalist-Luke]

Can anybody in here explain what the differences are between Sharia (Islamic) Finance and our current system of fractional reserve? I see where Australia is apparently considering switching to Sharia Finance and apparently there are increasing calls around the world for such a move in other countries as well, as the dangers of our usury/fractional-reserve system become more apparent. I already know that, under Sharia Finance, there is apparently no interest charged on loans. So how do financial institutions generate revenue in Islamic countries?

This might have implications for preparing the way for the Antichrist.

[cwb]

What exactly is "islamic finance"? If you are saying that not charging interest on loans makes it Islamic, I am not sure that alone would make it Islamic. I think old testament law also has provisions in it against usury.

[Literalist-Luke]

What exactly is "islamic finance"? If you are saying that not charging interest on loans makes it Islamic, I am not sure that alone would make it Islamic. I think old testament law also has provisions in it against usury.

You're right the OT does indeed say that. That's the whole point of my question - I want to understand what it is about Sharia Finance that makes it unique and that would have numerous people around the world saying the time has come to make it the law of the land.

[SpokenFor]

http://www.shariahfinancewatch.org/blog/about-2/

THis site may give a better explanation.

I do not find it far-fetched that Sharia-finance could happen in the US. Right now our stock market is plummeting. It is ripe for rich Islamic persons to buy up all the oil (and other) stock. When they own enough of it, they can start demanding that the companies and banks start complying by THIER rules. Of course, any profit deemed "unpure" by those who decide such things, must be "laundered" by the money being sent to Islamic "charities".

Certainly many in the US would at first applaud such a move by the financial institutions to switch to a non-interest-charging system (heck, who wouldn't love to not pay interest on their house/car/stuff?) and that "profits" are going to "charities". There would be little resistance.

[Cyberseeker]

... under Sharia Finance, there is apparently no interest charged on loans. So how do financial institutions generate revenue in Islamic countries?

Islam theoretically prohibits usury. However they have a crafty way of getting around it.
http://www.islamic-finance.com/item100_f.htm

This might have implications for preparing the way for the Antichrist.

I'm inclined to agree.