Islamic financial system

21 Aug, 2006

'Pillars of rating of Islamic financial institutions' by Mohammad Ashraf. This article appeared in the paper on July 30, 2006. The learned scholar has, as always, played the old tune. This has forced me to pen down a few comments on the subject.
It is a different view but aimed at mutually educating and communicating with your readers. It is a misfortune that we have spent our energies and resources on proving and advocating that there exists an Islamic financial system? No Sir, Islamic financial system is yet to be implemented. At best the present effort is a way forward by introducing products. These when the complete system is put in place, may or may not survive and/or remain operative.
REASONS ARE VERY SIMPLE TO UNDERSTAND:
-- Ummah has not responded collectively and positively as a unit.
-- Rift among Ulema is visible and widening.
-- Accounting systems of products are not transparent.
-- Accountants and their professional bodies do not give their comments on balance sheets.
-- Sharia audits are overdue since long at all levels.
-- There is no visible dialogue between business class and banks on critical issues. System has also not passed through Parliament
-- What is in Islam - a central bank or Bait-ul- Mal.
-- Islamic system of banking and finance based on Bait-ul-Mal, which can be socially at par with the system of Islam implemented in early years. It does not bar development of permissible technologies. It will open new horizons of education for Deeni Madaris and universities.

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