Islamic Banking - A $300 Billion Deception

About the Book

Islamic banks currently control about $300 billion in assets. This book assesses the underlying rationale of Islamic banking, that the Quran prohibits all forms of interest. The author maintains that, first, a correct interpretation of the Quran, keeping in mind the context, would indicate that what the Quran prohibits is usury –exorbitant interest. Second, Islamic banks do not practice what they preach; they all charge interest, but disguised in Islamic garb. Thus they engage in deceptive and dishonest banking practices. The author also offers some policy recommendations, including the need for Ijtihad, Enlightenment, and critical thinking. Islamic banks, if they wish to practice genuine and authentic Islamic banking, should become more like venture capital firms.

About the Author

Muhammad Saleem is an international banker by training. He is a co-founder and a former President and CEO of the Park Avenue Bank, New York. Before that he was a senior banker with Bankers Trust, where among other responsibilities he headed the Middle East Division and was a member of the bank’s credit and loan policy committee. He has also served as a senior advisor to one of the prominent Islamic banks based in Bahrain. Additionally he has been active in advising a number of Middle Eastern investors on venture capital investment in the United States.