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Islamic banking, 0% interest, theo-finance?

Posted: 13 May 2021, 19:56
by gearhead
Risk, return and time-value-of-money are the bases of banking and finance! How is it that predominantly muslim countries managed to get away with charging 0 percent? Where do they even get the deposits?

I am baffled by the concept. Why wouldnt I borrow from an islamic bank at 0, deposit it at a christian bank and make a living off the interest?

Re: Islamic banking, 0% interest, theo-finance?

Posted: 13 May 2021, 20:34
by Somaliman
gearhead wrote:
13 May 2021, 19:56
Risk, return and time-value-of-money are the bases of banking and finance! How is it that predominantly muslim countries managed to get away with charging 0 percent? Where do they even get the deposits?

I am baffled by the concept. Why wouldnt I borrow from an islamic bank at 0, deposit it at a christian bank and make a living off the interest?






Don't be fooled by the 0% interest! There are other terms attached to such loans.

Nothing is for free in this materialistic world!