Before you take off to another blog you are subscribing, let me say that getting bankers to not act like bankers have been the norm in Malaysia since Islamic finance was introduced in 1983 here under the Islamic Finance Act. Islamic finance is about trade, that is it. No two ways about it. Islam believe you can only gain something if you work for it. You get paid for the amount of work that you do and the risk that you took. If the risk is high, you get a higher return. Putting money in an Islamic finance venture is calculable without anything made from thin air at all. In Malaysia even the non-Muslims already accept Islamic finance as just another banking product.
I am learning Islamic finance in my spare time and I am left with 3 subjects more to get my Masters degree. In Islamic finance, the subject matter as well as how a contract is done are just a few of the matters that need to be taken into account before something is considered to be under the Islamic finance banner or not.In most of Islamic finance products, there are needs for the bankers to be entrepeneurs.
The banks need to evaluate ventures that they are putting their money in like they are a part of the venture. Not just a part as in I give you money and I don't care what you do with it, you must promise me a return as such. In Islamic finance, you have to be involved in the venture including having a say whether the venture should be stopped and liquidated. You can even asked to be included as a director or a partner in the company of your client.
This is the part that most bankers just couldn't grasp. Being a part of a business that they have no understanding of. Just imagine putting a banker in the shoes of a trader or a contractor or a developer. They will scream bloody murder. But just imagine the accountability that they have to bear. They will even bear responsibility on any losses. However, just imagine what the economy will be like if such accountability like a sword of Democles hangs on the bankers head. Wouldn't they be more serious in ensuring their investments?
Just a thought....
2 comments:
Btw, I've been to all your blogs now and I was wondering which one you want me to link to? All of them? Teehee.. And if you link to my Inlove with Daisies and click it, your link will automatically appear there are well.
The need for accountability is the same thinking that is coming up here in the US right now. Bankers and the financial institutions need to be more accountable for their actions.
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