New York: New
York Times reported that Islamic banking is spreading all over the globe. These banks adhere to the Islamic
instructions and prohibit charging interest.
Banks do not finance
gambling, alcohol, pornography businesses. Financiers do not receive return unless their fund invested
in productive projects.
Currently, there are about 300 financial
institutions of $500 billion of total assets doing Islamic banking. Among them City bank and HSBC.
After 9/11 considerable amounts of oil monies totaling
$800 billion moved out of United States to other regions to capitalize on growth which is booming in Asia and the Middle Eastern
countries. These investments also helped the revival of the Muslim world.
Malaysia, devised the first Islamic bond called suh kook.
Now, the global market account for $82.2 billion.
“Islamic banking is supposed to function as more like private equity firms than conventional
banking. This risk sharing helps reduce the kind of abuse that led to the sub prime mortgage mess”.