Islamic Finance

Why Can Islamic Banks Survive in Times of Crisis?

There are several factors that cause sharia-based banks to remain relatively stable: Islamic Banks are more focused on conservative products and avoid exposure to high risk financial instruments. The principle of Islamic Banks is to maintain the banks’ primary function as a mediator between the parties that are in surplus of funds to those in deficit or in need of funds. Islamic banks only facilitate and finance real assets. Speculation… Read More »Why Can Islamic Banks Survive in Times of Crisis?

Can I Keep My Conventional Credit Card for Emergency Uses?

Reference: http://alnaqiy.com/home/article/conventional-credit-card/

Question:

Can I keep my conventional credit card for emergency or specific uses but pay all money owed within the stipulated deadline such that I don’t incur interests? What about the service fee that I remain paying for maintaining the card? If I understood correctly, paying service fee is fine as long as it is a flat charge, as this is a fee that is paid for the services rendered to me. But, some friends have said that it is not permissible. I do also have an Islamic card which is the main card I use. But the providing bank of the conventional card is much more recognised, efficient and most importantly reliable, hence my plan to keep it for specific or emergency uses especially since I travel quite a bit for work. Appreciate your advice.Read More »Can I Keep My Conventional Credit Card for Emergency Uses?

What to Do With the Return from the Conventional Insurance?

Available at: http://alnaqiy.com/home/article/what-to-do-with-the-return-from-the-conventional-insurance/

Question:

I recently terminated my conventional insurance policies, which I have had since my teenage years, not too long ago. From those policies, I received cash bonus and the surrender value of my policy. The latter, as how I know it, is my principal money there. In fact, I received less than the premium paid.

With regard to the cash bonus, since this is riba-based, I am thinking of giving them away, as the money is haram for me but not to others. Is this permissible?

The bigger question I have is, can I give to my immediate family members who are financially struggling or who would benefit from extra financial support to manage their businesses? If I am to give away, I would like to help my family first, then give the rest to others in need. Or can I give the money so that that family member can go for Hajj? I take some comfort that the funds they are about to receive from me is not haram for them, but perhaps you can share some guidance on how best to manage this situation, that is permissible in our Shari’ah.Read More »What to Do With the Return from the Conventional Insurance?