Please keep the Bible out of my bank
I was rather dismayed at this story published a couple of days ago. My main dismay comes from “sharia creep”, in that we are allowing the interloper to take over our country and our customs. Another reason is that I own shares in the Royal Bank, and I don’t like the idea of religion coming into play where my money is concerned.
In February, Royal Bank of Canada hired Zaher Barakat, who teaches Islamic banking and finance at Cass Business School in London, as head of financial products for the Middle East.
RBC is targeting a variety of clients in the region, including sovereign wealth funds, private banking arms of local banks and government pension funds. While the priority is to market the bank’s existing services and products into the Middle East, RBC is planning to enter the Islamic finance market, Mr. Barakat said. “We are working now on one fund to transform it to be sharia-compliant,†he said.
At the end of every seven-year period you shall have a relaxation of debts,
2
which shall be observed as follows. Every creditor shall relax his claim on what he has loaned his neighbor; he must not press his neighbor, his kinsman, because a relaxation in honor of the LORD has been proclaimed.
We must consider that Muslims are “people of the book” who also adhere to the Old Testament. in addition, the Koran teaches
“If your debtor be in straits, grant him a delay until he can discharge his debt; but if you waive the sum as alms it will be better for you, if you but knew it.” [The Cow 2:280]
By allowing religion into the sphere of modern finance, we are essentially looking at people using the Bible to have their debts waived entirely, or the Koran to have them deferred. So people like me, and many other Canadian investors, are looking at having our shares devalued by this idea.
Suggestion to the Royal Bank: Don’t grant mortgages that are longer than 6 years and 11 months!
Ironically, I read a story about Royal Bank getting into sharia finance while waiting for an appointment with my Royal Banker yesterday.
Islamic finance is an oxymoron. Interest is interest, whatever you call it. To call it anything else is a fraud.
I’d definitely consider switching banks if Royal decided to offer any sharia products in Canada.
Comment by Steve — July 9, 2008 @ 5:48 pm
“we are allowing the interloper to take over our country and our customs … we are essentially looking at people using the Bible to have their debts waived entirely”
Not to worry. If the RBC are doing anything, they are doing it to make money.
And that phrase “allowing the interloper” is a sign that you haven’t outgrown childish ghost stories.
Comment by dz alexander — July 9, 2008 @ 8:14 pm
Do you really think Royal Bank (no need to preface it with ‘the’[1]) is offering these loans out of the goodness of its heart? Banks are notoriously adept at making money and this endeavour is obviously an attempt to broaden Royal Bank’s pool of potential customers as well take advantage of ignorant immigrants. As the Toronto Star reports (http://www.thestar.com/Business/article/298618), people ending up paying slightly more with these loans than with regular ones, putting more money in the hands of shareholders.
[1] See: http://www.rbc.com/hist for usage.
Comment by Edward D'Souza — July 9, 2008 @ 8:27 pm
[...] PLEASE KEEP “the Bible out of my bank”; you know, except the 8th Commandment, right? …. [...]
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