“Islamic” Banking and such Terms and Conditions
I happened to glimpse Meezan Bank’s account-opening form with the preconceived idea that I would find something new … something “Islamic” about it … succinctly distinct from the so-called conventional banking and whereas there were many items deserving a rant the one that I found most “Islamic” was the otherwise authoritarian clause:
“The Bank may from time to time and at any time revise and/or change any of these terms and conditions including without limitation …”
In an earlier post Moral Recipient of a Half-moral Proposition, I ranted about a conventional bank’s imperialism and now this time with an Islamic bank! This isn’t even about whether Islamic banks are in essence any better than conventional, because no matter how they operate differently under the hood – it is the “contract” that strikes a fatal non-Islamic authoritarian blow. The hype of Islamic banking is all about manipulating contracts, unless I’m gravely mistaken and I would love to enlighten myself if anyone would be willing. Until that time, I suffice to say: they forgot to give the opening contract a facial makeover.
Under the tenancy of Muslim-hood I have a question: What part of the quoted line sounds like in the spirit of Islam?
This is my venting space, my Hyde park. A necropolis of brain storms …
This is an Islamic Bank in a land where there are no Islamic laws properly implemented. This bank hires Muftis to give it the license to call itself “Islamic” and there’s nothing Islamic about this particular clause which you rightly pointed towards. Pakistan and many other Muslim countries are not being ruled by true “Islamic” Governments, hence you see all this confusion between a believer (i.e. yourself) and the commercial entities (i.e. Meezan Bank). This is the “only” reason that instead of living in a confused nation or land, I prefer “Kafir” countries where at least they are openly “Kafir”, not hideously.
Amir
2 July, 2011 at 2:43 am
Actually the event of Islamic banking goes much deeper than just facial makeover. I didn’t delve into the details of where and how things are patched up to make it a lucrative deal for common Muslims. In a nutshell – “It’s all about contracts.” For example, whereas a conventional bank would require you to sign a single contract agreeing to markup and the like, an Islamic bank would require you to sign “two/multiple” contracts as a package deal. Per the first contract you are just a borrower agreeing to return in parts (quite Islamic so far). The second contract would however impose a monetary fine should you happen to breach the terms of Contract 1. To the best of my knowledge, Islam does not permit dependent contracts like sign this and that and a breach of this is a breach of that too! This is clear in Islamic jurisprudence too, and scholars like Taqi Usmani have developed a whole system of inter-dependent contracts. The beauty is that every contract taken sole is “Islamic,” the overall package … well.
Moreover, monetary punishment for breach of “promise”? That itself is a debatable item and different schools of jurisprudence differ on that. Ironically, Mufti Usmani is a Hanafi and per Hanafi jurisprudence – its unlawful.
alleey
3 July, 2011 at 6:49 pm