Islamic Finance, The Future Of Banking

Bandar Seri Begawan - Islamic finance is relevant to the current global financial situation, and is the way of the future.

This was highlighted by Mr Mohd Hairul Azrin Hj Besar from University of Brunei Darussalam during a talk as part of the programme for the 16th AFA Conference 2009, which is currently taking place at the Rizqun International Hotel.

The talk was held to answer the question, Is Islamic finance an Alternative for a globalised economy?'

"I'm talking about Islamic Finance, and how it is relevant to the current financial crisis." he said during an interview. "Islamic finance is here to stay, and people should be prepared.

"I will be talking about how it can contribute in economic governance," he said. "It is the way of the future - it is not a fad nor is it a trend.

"I hope participants will come out of this knowing what Islamic finance is about, and look at it in a different way.

"At its current stage in Brunei, more exposure is needed so that we can educate the masses. We lack human resources, and need more laws and regulations for it.

"This is good exposure for Brunei. Hopefully it will show the world that Brunei can deliver in terms of holding conferences."

Also speaking at the session was Prof Ainun Na'im, Chairman of the Academics Compartment IAI, Indonesia.

He spoke about the Principles of Islamic Finance and Banking, which included "Syari'ah laws and values that comprehensively guide individuals in (ritual and non-ritual) life", and prohibition of "dealings with haram (unlawful) services and commodities such as gambling, liquor, etc."

He also said that in business and economy, "Syari'ah laws explicitly state that Allah allows trade (business) but prohibits riba (Ahallallahul Bai'a wa harramarriba)."

Another principle he spoke of was that "Zakat should be included in managing assets, as the obligation to contribute to social welfare," as well as "Segregation between syari'ah and non-syari'ah funds."

Present as moderator for the talk was Mr Makhtar Abdullah, Acting CEO, Centre of Islamic Banking, Finance and Management (CIBFM), Brunei Darussalam.

Day two of the I6th AFA Conference 2009 will be taking place today, as well as the closing ceremony.-- Courtesy of Borneo Bulletin

Link: http://www.brudirect.com/index.php/2009120912038/Local-News/islamic-finance-the-future-of-banking.html