Sharia banking | Page 2 | TigerDroppings.com
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Vols&Shaft83
Tennessee Fan
Throbbing Member
Member since Dec 2012
26975 posts

re: Sharia banking

quote:

And he believed in bitcoins.



No they believe in arse pennies, there's a difference.


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GrantTheFan
LSU Fan
Baton Rouge
Member since Nov 2010
293 posts

re: Sharia banking
The company I work for sells, among other things, a core banking software system that has an Islamic Banking module. I don't know much about it, but on my last assignment I worked with a guy that specializes in it and he told me that behind the scenes, everything processes just like normal loans/deposits, but the front end is built to display accounts/products as interest free. I'm curious about refi's now, I'll shoot him an email tomorrow.


foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
31946 posts
Online

re: Sharia banking
quote:

I'm curious about refi's now, I'll shoot him an email tomorrow.


Please update here, I'm curious about this. My initial guess is that the cash flows are about the same but I wonder how they present things to satisfy the clerics.


Vols&Shaft83
Tennessee Fan
Throbbing Member
Member since Dec 2012
26975 posts

re: Sharia banking
quote:

Hey now, slow down there hoss


Actually, I kinda like hummus


LSURussian
LSU Fan
Member since Feb 2005
85157 posts
Online

re: Sharia banking
quote:

Actually, I kinda like hummus
Me, too....but it sure does make me fart.


ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
10176 posts

re: Sharia banking
quote:

frick them, frick Muhammad, and frick anyone who thinks otherwise.


Jesus Vols, tell us how you really feel

For the record, we had neighbors who were Pakistani Muslims. Their daughter and our daughter were BFFs. She and her parents smelled fine.

On the other hand, their mortgage was a 30 year fixed through Citi so maybe they weren't real Muslims.


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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58939 posts

re: Sharia banking
quote:

Me, too....but it sure does make me fart.


TMI


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GrantTheFan
LSU Fan
Baton Rouge
Member since Nov 2010
293 posts

re: Sharia banking
This is his response to mortgages/refi's:

The mortgage is setup as a lease/rent to own, where a trust owned by the bank buys the home then transfers it to the customer when they have made all payments. The customer gains the ownership stake with each payemt, so to refinance a new 'trust' is set up to buy the home from the old trust while they new payment agreement is signed between the new trust and the customer.

I take it from this explanation that the equity is earned with each payment, like with a traditional mortgage. I think the big difference is that it's a straight line, as opposed to a traditional where early in the loan it's more interest and as it amortizes down it's more principal.


LSURussian
LSU Fan
Member since Feb 2005
85157 posts
Online

re: Sharia banking
quote:

where a trust owned by the bank buys the home then transfers it to the customer when they have made all payments. The customer gains the ownership stake with each payemt, so to refinance a new 'trust' is set up to buy the home from the old trust while they new payment agreement is signed between the new trust and the customer.


I wouldn't trust that.....





j/k, thanks for the info.


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TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
14892 posts

re: Sharia banking
Thanks.

It still looks like in order to be competitive they must mark their "fees" to market interest rates.
So the "evil interest" still plays a role in their business model.


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
31946 posts
Online

re: Sharia banking
Thanks for the info, that's interesting.


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