How does the Finance of Western Differ from Islamic Finance , and what is the Safe Finance that would make us rich

1. ABDERAHMANE BAKELLI
Banks with interest VS. Banks without interest
My topic is banks that are the majority of the world banking today that are charging the
interest and arguing with strong booming banking that does not charge interest at all , it is
strong thesis , I will provide wide knowledge of differences between two of them and it
is an excellent argument that challenges the banking industry in the world currently and recently
and in the future and I will explain how the interest work for the power of money , how the
interest affect world politics , how the interest affect their investment and how it affects the
world religion and most of all , how the interest affect the lifestyle of people with their lives and
their families.
How ever, even if you apply into banks that are not charging the interest, they provide you with
the same services but in different conditions policies and different requirements.
What is the interest? Usury in religion word? the interest (usury) is the amount of the money that
is charged with the loan that are given, the interest difference by different banks and it depend on
the rate that the bank is offering with increases the loan into more amount than the original
money that borrowed, for example loan = 5000$, interest rate = 3%, when you pay the money
back you need to pay 5000$ plus 3% monthly total is 5150$ monthly , so when you return the
money that borrowed you can see that the amount of interest alone is more that the principal that
you want to get from the bank which is unfair and injustice for customer and investor because
they only looking for certain money with no other charges , also when you came to mortgages
you see the big interest play big role in unfair loan and the amount increase each time the amount
is high for example : you get loan from bank to buy a house of 250K with the interest of 4%

2. when you pay the mortgage at the end of 25 years , you notice that the amount that you paid was
250K+250K which is the interest and the amount and you’ve found that you paid 500k which
you could bought 2 house instead of 1 house , now the interest is known as profit that the bank
are getting profit from not the real money that you got and that work perfect for lenders and the
bankers and if you went to ask for unfair amount of interest , they make excuse that they cannot
give money with no benefit , no charge with free of loaning so they charge you with a profit they
lend it to other people and so on . Banks make their profit by interests!
However , just recently and currently we are having a financial crisis and the banking who
charge the interest are loosing in the economy and if you see the banking who are surviving in
the economy , they’re banks who don’t charge interest such as JAK , Islamic bank of Britain
…… even thought they don’t charge the interest and they don’t profit from the interest as other
banks in the world who are more popular and more wealthy, the Islamic banks and new banks
whop don’t charge the interest are ahead in the economy while all the industries are dying and
trying to stand up .No- interest banks are booming industry while other struggle to survive .
Now when it comes to the history of this financing system of charging no interest it was as
followed; Banks in our world from 1920’s to 1970’s there were banking charging interest on
every time the loan a money to people which was one of the major reasons that led into great
depression in 1930’s then into many other countries . Starting from 1970’s we start seeing and
discovering that are new banks with no interest which called Islamic banks in the gulf area in
Middle East and the Swedish bank JAK, Islamic banks started to became more popular, more
famous in the economy and profitable of course , people were tired for paying interest at no
reason and started to think for new financing plan that led into Islamic banking financing and

3. when it was very successful and very profitable in the economy , some other nations started to
adopt he same finance plan to their banks which led into creating the JAK bank who located in
Sweden that had 5000 members applied for the finance which result into many other banks
around Europe ( Germany , Italy , France , Spain , England …..) Then the rich investors started
to expand their banks from the gulf area into Europe , in middle of England where the most
England , where different nations , different ethnicity used to work with them and use the service
of no interest, when it comes very popular , it started to expand to North America , and it comes
the financial crisis late 2008 that England started to discuss how can they survive and get up at
their knee as other nations , so the first idea comes to them to report the losses of banking in the
great Britain and have found great surprise that Islamic banks and banks who don’t charge the
interest are still surviving and still profiting in the most hard time in the world where WALL
STREET has lost their investment and led into falling of the world economy , Lord Digby Jones
the Minister of Trade in U.K has this report and started to meet with the CEO’s of those banks
who don’t charge the interest and are surviving and start to get information of how they survive
while the biggest banks lost totally, they answered simply because we don’t charge the interest,
therefore, the minister has demanded many task to get completed to fix the economy and
conclude by those TO DO list:
Another meeting with CEO’s of banks who don’t charge the interest to hear from them their
opinion of how they can get back the economy.
At the same time the education system of England are adopting new Master post-graduate
program in university to specialize in the Islamic finance banking which the University of
Bangor has started this MA program in September so the Islamic and Swedish banks are
becoming the secret tool to survive in any financial crisis , the British’s banks are opening

4. offering Islamic finance of NO-INTERSET with the rule of minister of trade in U.K to ensure
the survival of the Britain economy while the Islamic finance system is growing rapidly in
different regions of the global to survive in the global crisis.
At the same time, interest makes a great source of income if you put it in the bank as investment,
Benefit of using, charging the interest in our economy and in our lifestyle:
Lower your payments: that means you can pay the principal money by paying little by little
Flexibility – that means Interest allow payment flexibility by paying each terms fixed amount
and this
option work perfect for employee because they do have a good job and guarantee income coming
to pay
the money that was loaned.
Economic conditions may cause you to loss your job – that means you might pay longer
period when
using the interest if there is an economic crisis like what we are facing now.
Increases your money – that means your money would increase while you save it or invested in
the banks.
Banks – Government Win – Banks and government are charging interest for people who get
loan from either the other government or from the banks to buy a house or for an investments
purpose
but how about when you get the mortgage and get the loan to invest or buy something that you
would like a car, would you still like to pay the interest of 6% as mortgage in 25 years that would
result in double amount that you actually have paid while if you use a no interest financing you
could buy 2 houses in same period in same amount that you put in the mortgage that means if
you choose to get interest , you need to get the whole package of using interest , using interest

5. means very benefit but the disadvantage of using the interest is worse than its benefit and it is
disaster option in terms of financing credit .
Mortgage loans, car loans, banks loans and any other loans that charge the interest has the
interest rate and we know that the interest rate is not stable and not flexible of certain amount
which could face a big debt that you can’t pay it back , we know that we can not hide from the
loans or from the interest , at same time we could lose our job and don’t have more source to
pay the loan that led into depression and at this point , different people have different reaction to
it , either suicide , divorce , getting accident then to hospital , and loosing the hope of the life
and no one could help him in this planet which I came to the point of how the interest affect
ourselves and affect our lifestyle , also when you loan a money to a friend , you charge him with
a interest this is could result in conflict between friends , parent and children , and people around
you, ALL this unhealthy thinking , and bad , negative moral and physical result came from
INTEREST
Next point is how the interest affects the power of money, where no one can challenge the banks
to stop asking for interest because it is their main source of profit, the banks profit from the
interest that charge in the mortgage and cannot stop charging the interest because it could result
in the bankrupt. While Islamic banks and JAK do not profit from the interest .In fact; they don’t
charge the interest at all, they buy a home and sell it for you much more but without any other
amount such as interest.
Now how the interest affects the world politic and how is related to this course, the interest cause
the following:
No investment: The interest discourage investing in our money

6. No Saving money The interest discourage saving money and borrowing money
No Middle-Class The interest encourages and led to poor life by charging double money than
the amount that was borrowed.
Economic Crisis The interest causes unemployment, inflation in the economy and
environmental destruction, make gab between rich and poor.
So when there is poor people, unemployment rate is high, this result in an instability in the
economy and in the social of the country which could result in war, no investment to the country
the interest discourage saving money which is dangerous because the result is that the currency
will drop down , low GPD , low standard of living , export more than import , deficit government
, and led into coalition of the government that comes by problems between communist and
liberal government which could result in war of the government , which result in big problems ,
it would be hard and difficult dealing how to calm and fix the negative conditions of this
government , UNICEF , security council , and other organization will step in and will play a role
in this country which they could change and modify their culture, change their rules and those
rules might or might not favour the citizen of its country , occupy their resources and the
occupation might led into the corruption of the system of its country and so fourth problems .
Upon the research that I did, I found at least five banking that do not charge the interest in most
countries in Europe excluding the Islamic banking , only in Toronto three banks are having no-
interest financing because the concept of banks with no- interest financing comes from the
Islamic banking that brought the idea from the gulf area, and when you add the Islamic banking
to the list of banking industry in the world that charges not interest , it would be over 300 banks
in the world , when it comes into religion , it is forbidden in the major religion Islam , Christian ,
Judaism , to charge or receive the interest at all , in Quran , in Bible , in Torah . The evidence of

7. forbidden by world religion Are:
Islam-Quran: Al-Baqarah 275-281 ``Allah destroys Riba (interest) and will give increase for
sadaqate (donations)
Christian-Bible Leviticus 25:37 ``Thou shall not give him thy money upon usury, nor lend him
thy victuals for increase``.
Judaism – Torah Leviticus 25:37``when you lend money to any of my people, to the poor among
you, you shall not be to him as creditor, nor shall you impose upon him any interest ``
So if the people are not applying and are not following their religious sacred, that means that we
are having individualism ideology that stand for the human are perfect and they who are
controlling their world, which is false because no human could create a sky or mountain or
ground, and this ideology result in problem connection with our god, which will end up in the
great depression and great problems that is similar to natural hazards and more results that are
not benefiting the human
When it comes to the statistic of how those information of the Islamic financing and banks who
are not charging the interest are true, the evidence are followed `` financial crisis is an
opportunity for Islamic banking to shine`` said prime minister of Malaysia,
The government sees Islamic banking as another way to draw business to London, to bring
investors to U.K `` said Duncan McKenzie , globally the Islamic banking industry are total now
between 600$billion – 1 $ trillion and it is growing to 10-15% annually per year , for six months
in 2008 , Kuwait Islamic banks alone report that their profit is $2.7million. The government of
U.K is supporting Islamic banking finance`` said schoon `` it is not seen as threat, it seen as an
opportunity for U.K economy. ``The rise of Islamic banking in a time of economic crisis when

8. followed the rules of Quran they found themselves totally in other direction which avoid trouble
of crisis with more profit when wall street , citi bank and other great banks are bankrupt ``,
imagine great banks that they survived years and years then suddenly lost in time of less than 5
months while other Islamic and European banks that charge no interest are not that much of
experience as CITI and other but still are gaining profit and surviving as nothing happen to the
economy from 500$billion to 1$trillion in the time of crisis starting from November 2008 until
now January 2009 and they’re growing 15 % in Europe’s economy . There is other article wrote
by Wilson, financial expert ``There is no Islamic financial institution or any such a banks that
charge not interest are in trouble in this global crisis `` said Wilson. Retail and wholesales
services have grown rapidly since the Islamic bank of Britain became first domestic bank, there
are 23 conventional banks offering Islamic financing with no interest – France has 4
conventional banks that have Islamic financing.
Just recently 28 December 2008 an article made by the bank of Tokyo-Mitsubishi has promoted
new service for their clients around the global by adopting Islamic financing into their resources
and their system of financing.
When I mean Islamic finance it is same ideology and same system of other banks that charge not
interest, and because it was the first system financing banking that start the idea of charging no
interest for investors, for customers and for lenders.
Finally how the interest affect the investment from domestic investors or foreign investor’s .the
investment came by investors who are rich, smart, have a good skills, good education, and
looking all the time for any opportunities to invest everywhere with conditions, with great plan
of start –up, great plan of marketing plan, now in the marketing plan, investors needs to look for
certain conditions that apply in its region to decide weather it is good investments opportunity or

9. no! , Is it right place? Is it at right time? And many other questions, one of the plans they look for
is the demographic profile and demographic target which is the employment rate, age…….. But
the interest do not benefit those type of investors because interest cause unemployment, also
when the investors find perfect plan, perfect opportunity, they need funding. So when they get
funding from the banks who charges the interest with their funding, now let assume he has done
good job and paying back his loan to the bank , then suddenly the government changed to
communist or the country fell into economic crisis , the banks will raise the interest because they
need to survive in the crisis economy ,so his customers will stop buying because they need to
get to eat and pay their credit too or the new communist government stopped his type of job , so
he is out of the job , alone and big debt waiting for him to pay it back with more interest .
Now you can decide which you can use with its negative and its positive result in your life from
now on whether a good, healthy life to help the world and help the economy into better direction
and better life or depression and worrying all the time if you could lose your job and could now
pay the interest back when you are in the cycle of the debt causing from the interest.
I hope that I convinced you to use the banks that do not charge the interest and it does not has to
be Islamic finance , any banks that has no interest financing will help our planet rise and shine
into better world and better economy

10. no! , Is it right place? Is it at right time? And many other questions, one of the plans they look for
is the demographic profile and demographic target which is the employment rate, age…….. But
the interest do not benefit those type of investors because interest cause unemployment, also
when the investors find perfect plan, perfect opportunity, they need funding. So when they get
funding from the banks who charges the interest with their funding, now let assume he has done
good job and paying back his loan to the bank , then suddenly the government changed to
communist or the country fell into economic crisis , the banks will raise the interest because they
need to survive in the crisis economy ,so his customers will stop buying because they need to
get to eat and pay their credit too or the new communist government stopped his type of job , so
he is out of the job , alone and big debt waiting for him to pay it back with more interest .
Now you can decide which you can use with its negative and its positive result in your life from
now on whether a good, healthy life to help the world and help the economy into better direction
and better life or depression and worrying all the time if you could lose your job and could now
pay the interest back when you are in the cycle of the debt causing from the interest.
I hope that I convinced you to use the banks that do not charge the interest and it does not has to
be Islamic finance , any banks that has no interest financing will help our planet rise and shine
into better world and better economy