There are several opinions on whether Islamic banking is truly Halal or not? There is a lot of difference in opinion on the financial instruments as summarised and detailed between the muftis as well when it comes to Islamic finance but you can always find a safe way in sha ALLAH.
For those who declare Islamic Banking Halal
Those in favor of this opinion rate Islamic Banking typically a different model of banking compared to Conventional Banking. The main point is that Islamic Banking and Conventional banking are two different things, one should not confuse the interest earnings by the bank with the profits they earn through their trade activities. Hence, to them it is Halal.
Islamic banking is purely halal banking and certified by mufityan deen so no questions about their authenticity and halaal
Islamic banking vs conventional banking: It is more about the Process
There is no need to define conventional banking. The concept of paper money was an innovation in the society and now that it prevails qualified muftis etc have studied this for years to differentiate the fundamental concepts as described in Islamic law against conventional laws of finance that are predominantly haram. Just because the end result is similar has got nothing to do with the methodology. You can make money in gambling and you can make money by trade. One is haram. One is halal.
How’s buying a car at interest/lease/Ijara from an Islamic bank different from buying it from other commercial banks, when you pay the extra amount at both banks? There is a huge difference between the two. The truth lies in the process. Just like you don’t eat chicken abroad but when you see a halal certificate you eat it. It has to do with the process. In terms of process, there is a huge difference. Also, how Nikkah papers are not just ceremonial and a contract that disavows Zina and makes sex halal. What is the difference between a wife and a girlfriend? Just a “contract “ (Nikkah nama) makes the girl halal for you. In Islamic banking, usually, a process has been defined as Islamic Banking whereas in any conventional bank it is not.
It’s sad to see people having such a negative opinion about Islamic Banking just because they are unable to see a physical difference in the transaction. Remember that a steak made of Halal cow meat and a Haram dead cow meat looks the same once cooked. But it’s the crux/intention/context/process behind the steak that makes it Halal or Haram.
The Two Basic Sides of Banking Transactions
