A young and growing industry
The Islamic banking industry today stands at[b] several hundred billion dollars [/b](estimates vary), and consists of more than 300 financial institutions in and outside the Muslim world. It is the product of the collective effort of bankers, economists, and Islamic legal scholars over the past several decades to develop financial solutions that meet the religious requirements of Muslims.

It is a young industry and a growing industry, and continues to evolve and expand both financially and geographically. It is indigenous and community-focused: i[b]t caters to devout Muslims in indigenous Muslim societies as well as in Muslim minorities of non-Muslim countries.[/b] Furthermore, it is an inclusive paradigm: non-Muslim individuals and communities that seek ethical financial solutions have also been attracted to Islamic banking.

The birth of modern Islamic banking
The first modern Islamic financial institutions emerged in the 1960s and 1970s. Since then, Islamic banking has spread to a large number of Muslim countries, including the GCC and the Arab world at large, South and Southeast Asia, and even Muslim communities in the West. Bahrain is considered a hub for Islamic banking, with significant activity also taking place in Kuala Lumpur and London amongst others. Islamic financial institutions have taken the form of commercial banks, investment banks, investment and finance companies, insurance (takaful) companies, and financial service companies. They follow different banking models: private institutions in a conventional economy (as in the GCC and the West), attempts at national Islamic banking systems (as in Sudan and Pakistan), and dual banking models (as in Malaysia and the UAE). They also take different forms: wholly Islamic institutions, Islamic subsidiaries of conventional banking groups, and Islamic banking windows within conventional banks.

Islamic banking today
This is an industry that is still evolving, developing and growing. It has gone from commercial banking to syndicated transactions and equities, and more recently, into debt issuance and structured products. Its sophistication and product offering have developed along with this change. At an earlier stage, industry growth was in part a reflection of economic growth in the Islamic world, fuelled primarily by oil wealth. This created a growing middle-wealth segment and hence made banking a necessary service to the larger segment of the population. In the past several years, increased awareness about Islamic banking has led to conversion from conventional banking and continued high growth (15-20% in key markets).

texazzpete:

You're the bigot, my friend. Read HSBC's Islamic Banking page. See where it mentions 'Islamic guidelines' and 'Shariah advisory board'?

texazzpete:

Stories depicting non-muslims in Britain patronizing islamic banking

http://www.thisismoney.co.uk/money/saving/article-1601140/I-chose-an-Islamic-bank.html
http://news.bbc.co.uk/1/hi/business/6168800.stm

noblezone:

Perhaps, you need to read my post again to understand me. I don't have anything against islamic Banking. All I am saying is that the CBN should promote NIB of which Islamic banking can come up. but promoting Islamic banking and not NIB is like NCC promoting MTN and not GSM.
If you dont understand this, I am sorry I can't help more than this. Cheers

Negro_Ntns:

I wonder if the proposal will get this much pushback if it was introduced by a white christian in tie and suit?

What people ought to fear and question are mega pastors who in the name of Jesus are taking from you but not giving back.

Islamic banking gives back what you give + more based on your equity in the sharing.

BP:

Your position on HSBC is not totally correct. HSBC is a bank and not a regulator. If it willingly subjects itself to Shariah scrutiny, it does so on its own. It will be different if you show me this same information on say the bank of England's website.

I'm not even against a Sharia council providing advice and some sort of regulation for the Islamic Banking sub-sector of Non-Interest banking. But what I am saying is that this HSBC example you gave is not a proper case of comparing like with like.

BP:

Texazzpete, please see my comments below as honest feedback from someone who respects your intelligence.

I respect your ability to take contrarian views a great deal. However, I often see a lot of aggression, written violence and sometimes outright insults in your posts. You do not have to be this aggressive to make your fine points known.

Even if others are insulting, you shouldn't join them.

Also, I notice that you make very definitive and final statements without considering the fact that you could actually be wrong.

BP:

On this Islamic Banking issue, I have said elsewhere that there is nothing wrong with it except for the fact that there is already serious mistrust among Nigerians based on religion and ethnicity.  I still believe that if someone like Fola Adeola (a Muslim) was CBN governor, he would have maturedly introduced Islamic Banking without any of the drama Sanusi is bringing to this subject.

BP:

Your position on HSBC is not totally correct. HSBC is a bank and not a regulator. If it willingly subjects itself to Shariah scrutiny, it does so on its own. It will be different if you show me this same information on say the bank of England's website.

I'm not even against a Sharia council providing advice and some sort of regulation for the Islamic Banking sub-sector of Non-Interest banking. But what I am saying is that this HSBC example you gave is not a proper case of comparing like with like.

Negro_Ntns:

I wonder if the proposal will get this much pushback if it was introduced by a white christian in tie and suit?

What people ought to fear and question are mega pastors who in the name of Jesus are taking from you but not giving back.

Islamic banking gives back what you give + more based on your equity in the sharing.

texazzpete:

You're the bigot, my friend. Read HSBC's Islamic Banking page. See where it mentions 'Islamic guidelines' and 'Shariah advisory board'?

xterra2:

I agree with Texazzpete

IN Nigeria we have plenty islamic schools and christians schools, No body is forcing you to send your child there
why is an issue ?

xterra2:

In the west, we have hundreds of islamic banks, with non christians using it like in the ink that texazzpete shared,
we have it in many countries
not an issue really

why is an issue ?

texazzpete:

And I ask you, what is the best known and most prominent non-interest banking model?
What non-interest banking model is likely to have a short term benefit to the relatively large population of Nigerian muslims?

I'm interested in your answers, please.

noblezone:

I am a bit confused here texazzpete. is it my inability to express my self in English or your inability to understand simple and plain English.

Let me repeat, that I don't have anything agaisnt Islamic Banking. Islamic Banking is not even the subject of my initial post.
The subject of my initial post is that Sanusi ought to promote Non Interest Banking not Islamic Banking outrightly. And Islamic banking can conveniently come under it.
CBN is an umpire and should be seen as unbiased. Soludo's model was NIB and for Sanusi to come and promote Islamic Banking in place of NIB is both unprofessional and unethical.

Like I said, I dont' know how you will feel if the Chairman of the NCC will start promoting MTN and not GSM. As an umpire, they are to promote GSM and MTN can come up, and in this case, CBN should promote NIB and Islamic banking can come up.

Follow me, do you know that a Sharia Counsel will be inaugurated by the CBN? Will Non Moslems be members of that council? Whatever we do, we must realise that Nigeria has this peculiar problem of ethinic/religious divide which to some extent is sandwished in the Nothern/Southern divide. Even the last election had these undertones.

Sanusi as a professional has goofed.  Whether you like it or not, he has consciously or unconsciously introduced religion at the CBN. It is a shame.

you are asking me, What non-interest banking model is likely to have a short term benefit to the relatively large population of Nigerian muslims?, and my answer is this, it is Islamic banking. Yet, all Sanusi (as the Governor of the CBN: or is it CBIA => Central Bank of Islamic Affairs) should have done was to promote NIB and Islamic Banking can come up top take care of the moslems. His passion to take care of the moslems is well understood but using his postion as the CBN governor to do that is an abuse of office.
He can impose Islamic banking instead of NIB but he must know that careless acts such as this do only widen the gap between "one" Nigeria. Nigeria is already on the brink and zealots like Sanusi are pushing her further.

I wish you well.

texazzpete:

There are explicit guidelines and regulations governing Islamic Banking. This cannot be covered under generic guidelines for the generic 'non-interest banking' term. As Islamic banking is the most prominent model of non-interest banking as well as the most applicable to Nigeria's teeming population of 'unbanked' muslims, explicit guidelines and regulations MUST be provided. This is not about Islamic Banking coming on top of NIB.

You speak with passion but with little hard evidence. There isn't much in Sanusi's past to reinforce the oft-repeated accusation of ethnic or religious agendas. You need to prove this first, what is your proof? You say his main aim to to put forward muslim dominance, where does your conviction stem from? We all know Sanusi has taken a moderate stance on Islamic matters many times in the past.

Your 'MTN' analogy is deeply flawed. Sanusi's main efforts as the CBN Governor has been to bring about extensive reforms in the existing conventional banks. Were it not for the strident and unreasonable opposition to his new drive to implement Islamic banking from the likes of CAN, this whole thing would have gone down without drama.

Once again, I ask you a few pertinent questions.

1. How does it impact YOUR life negatively if Islamic Banking kicks off as expected?
2. Would you say that Stanbic IBTC bank has been 'Islamized' now that they've acquired an Islamic banking license?

BP:

Texazzpete, Let me try and respond the points you raised in your post.

Oritsejafor is President of CAN and by extension spokesman of Christians in Nigeria(whether he is doing this well is another issue). Sanusi however is not the spokesman of muslims in Nigeria. He's Nigeria's chief banking regulator and so he should speak in that capacity.

I see nothing wrong in Islamic Banking (either the concept or the name). I believe Nigerian Muslims have a right to bank in accordance with their conscience and religion so long as it does not infringe on rights of other citizens.

BP:


However, it is a fact that Nigeria is polarized. This knowledge is not new. I expect a skilful manager to make and communicate decisions taking into considerations the peculiarities of his operating environment. It's either Sanusi did not foresee the kind of heat this would generate or he did but decided it didn't matter. Either way, it show poor managerial skills.

BP:


You can imagine the kind of crisis you'd face as CEO, if the best response you can come up with when Union opposes a decision you took is "you have a right to go to court". Do they have a right to go to court? Yes. Is that the kind of attitude that will resolve the issue? No.

BP:

Knowing that Nigeria is very polarized, is it possible for Sanusi to have given sonmeone else in CBN the role of "the face and voice of Islamic banking"?

BP:

Clearly, Sanusi is more interested in taking glory for being the Muslim who was able to bring Islamic banking to reality in Nigeria than in seeing the idea come to reality itself.

noblezone:

Nigeria is neither a Christian nor an Islamic republic. So the CBN should have general guidelines for NIB and the perculiar giudlines for Islamic Banking can be stated under a sub. If Nigeria is an Islamic republic (and who knows what the true agenda is: Boko Haram is enforcing it), then the CBN can explicitely make islamic banking her focus.

You have stated that Islamic banking is actually to meet the needs of the unbanked moslems adn I am saying that it is not the duty of the CBN. CBN should simply open the floor for NIB and Islamic Banks can come up.

noblezone:


You questions (1 and 2) simply shows that you are out of context with me. Yet let me answer you.
1. I am interested in NIB, but Islamic Banks will not attend to me because I am not Sharia compliant. It will affect me.
2. If Stanbic IBTC follows the guidelines, then I am afraid they'll not attend to me becuase I am not Sharia complaint.

Sanusi/CBN should give us NIB, under the NIB while Islamic banking can take care of the moslems, the other NIB models can take care of me and other non moslems. A situation where I will be descrimnated on bases of religion is nothing but a betrayal.

texazzpete:

There must be explicit guidelines for Islamic banking because it has specialized requirements. I doubt any of the existing banks in Nigeria see the benefits of pursuing any forms of NIB that is not Islamic Banking. That is the only model currently capable of adding value for them. Naturally, energies must be channeled to this model.

Here's an analogy. You think the same export guidelines and rules are used when exporting items to Canada and North Korea? Are both not 'export'?


Islamic banking is Shariah compliant with respect to rejection of interest charging and usury, as well an abhorrence of gambling and a few other vices as an investment area. The customers themselves do not have to be Shariah compliant. I have no idea where this wicked falsehood comes from. See reports below of ordinary Christian britons increasingly patronizing Islamic banking


http://www.thisismoney.co.uk/money/saving/article-1601140/I-chose-an-Islamic-bank.html
http://news.bbc.co.uk/1/hi/business/6168800.stm

This is why the CAN people need to embrace dialogue instead of spreading the FUD that you need to convert to Islam and subject yourself to Sharia justice before taking advantage of Islamic finance.