Loading the player...
Turkish promotes interest free finance at IMF meeting
Turkey, as the chair of G20 group, promotes interest free finance because it offers additional financial instruments with less uncertainty and shared risks, according to the country’s deputy prime minister on Thursday.
Ali Babacan’s comments were made during a panel discussion at the annual spring meetings of the IMF and World Bank Group in Washington.
Babacan said referring to the way corporations and banking institutions in the Muslim world raise capital.
After assuming leadership of the G20 last December, the bloc endorsed for the first time, asset based financial instruments such as sukuk – commonly referred to as the Islamic equivalent of bonds.
Because fixed-income, interest-bearing bonds are not permitted under Islamic law, sukuk securities are structured to comply with Islam’s religious tenets and investment principles which prohibit charging or paying interest.
Interest free finance is “safer,” according to Babacan, who cited the 2000 and 2009 financial crises that he said "proved once again that the risks are managed better under these financial schemes."
Central to interest free banking and finance is an understanding of the importance of risk sharing as part of raising capital and the avoidance of "interest" or "usury," said Deputy Prime Minister Ali Babacan .
Along with roughly 13,000 others, Babacan is in Washington for the meetings of the financial institutions.
Approximately the same amount, including a number of world leaders are expected to attend the G20 Leaders' Summit in Turkey in November, according to Turkish officials.
- 2:36 Abu Dhabi Islamic Bank said to mull merger option
- 4:54 Morocco finally sets the stage for takaful industry
- 3:34 Bank of the Philippines urged to lobby for Islamic banking bill
- 8:02 Slow sustainability integration a threat to Islamic Finance
- 3:56 Al Salam Bank to introduce Islamic banking practices in Seychelles
- 6:45 Malaysia a global leader in Islamic banking
- 2:28 Islamic Finance is for all of Mankind, Irrespective of Religion - Turkish Deputy Prime Minister
- 1:10 US, Pakistan vow continued cooperation at Finance Working Group meeting
- 1:50 HBL launches free ATM-based remittance service for customers in UAE
- 2:10 Sweden's negative interest rate shock
- 1:49 The World Bank-IFSB-Turkish Treasury hold joint conference focused on Takaful
- 2:53 40th Annual Meeting of the IDB board of governors in Mozambique in 10 July
- 4:03 UNIT 3 RIBA, INTEREST AND PROFIT A
- 3:09 UNIT 3 RIBA, INTEREST AND PROFIT B
- 3:07 UNIT 3 RIBA, INTEREST AND PROFIT C
- 3:29 UNIT 3 RIBA, INTEREST AND PROFIT D
- 19:37 Economic System Of Islam Part 01
- 26:27 The foundation of Islamic Economics Part 02
- 37:10 Finance and Financing Part 04
- 13:49 Basic Principles of Islamic Economics Part 03
- 2:44 UNIT 1 ECONOMIC SYSTEM OF ISLAM PART I
- 4:21 UNIT 1 ECONOMIC SYSTEM OF ISLAM PART H