On the question of a bank formed compliant with Shariah and Christian obligations, a correspondent, and ex-banker says:
First hurdle would be the Feds closing you down – not tolerating the honest competition.
I wonder. The feds charter banks to be a part of a game based on usury, and not even relating to money, but usury on credit (today termed interest on money).
So if one was making loans of money, properly defined, in charity to others, at no point is there any usury or credit. so why would the feds care from a banking regulation point of view, since no banking is going on in the modern sense (but certainly in the Biblical/Koranic sense.)
So if I put out 1000 gold coins to be lent to someone in need to be paid back over time at 1000 gold coins total, then where does regulation come in?
As to the question of where does one get credit then, so say build a house, well at all times and places in history there was "vendor financing" which here again the feds have no interest in.
Except obliquely, and here is the problem. All of these loans are presumed to be interest bearing, to the point where the law requires income be imputed, and that income taxed. So should a bank, or a private entity make a loan in the Biblical/Koranic sense, the IRS would demand the lender pay taxes on the profits, even though in fact there are no profits.
And if not the lender, the borrower, who through the margin of inflation gained by paying no interest, must be taxed on the passive income.
This is ripe for testing.
Please feel free to share this post with three of your friends.
First hurdle would be the Feds closing you down – not tolerating the honest competition.
I wonder. The feds charter banks to be a part of a game based on usury, and not even relating to money, but usury on credit (today termed interest on money).
So if one was making loans of money, properly defined, in charity to others, at no point is there any usury or credit. so why would the feds care from a banking regulation point of view, since no banking is going on in the modern sense (but certainly in the Biblical/Koranic sense.)
So if I put out 1000 gold coins to be lent to someone in need to be paid back over time at 1000 gold coins total, then where does regulation come in?
As to the question of where does one get credit then, so say build a house, well at all times and places in history there was "vendor financing" which here again the feds have no interest in.
Except obliquely, and here is the problem. All of these loans are presumed to be interest bearing, to the point where the law requires income be imputed, and that income taxed. So should a bank, or a private entity make a loan in the Biblical/Koranic sense, the IRS would demand the lender pay taxes on the profits, even though in fact there are no profits.
And if not the lender, the borrower, who through the margin of inflation gained by paying no interest, must be taxed on the passive income.
This is ripe for testing.
Please feel free to share this post with three of your friends.
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