Adam Victor interviews Pervez Said on Islamic Banking
Could Islamic Banking have Prevented the 2008 Bank Bailout?
In 2012 Mr. Adam Victor spoke with a leading expert on Islamic banking and discovered that following the rules of Islamic banking cold have perhaps prevented the 2008 banking scandal that ended up costing tax payers perhaps trillions depending on the source and what was considered part of the 2008 crisis that almost shook America’s banking institutions to their core.
Islamic banker Pervez Said explains how that by following the 4 basic principals of Islamic banking that financial institutions would be more transparent and be barred from making risky loans; this alone would have prevented the high risk loans that led to the meltdown.
In this interview by Adam Victor on Islamic banking, he asks several key questions:
- What IS Islamic banking?
- Is Islamic banking have anything to do with Islam?
- Could Islamic banking rules prevented the past financial meltdowns?
What this short but enlightening video on how Islamic banking differs from Western banking and how those small difference can make a huge difference in the how the banking system effects the society as a whole.
The 4 Principles of Islamic banking are:
- No fictitious financial transactions.
- Absolute transparency. All contracts to be transparent.
- No undue risk to be taken.
- Every financial transaction has to be social responsible.