what is sharia finance? and Rogers City Mayor Beach Hall Testifies Before Michigan Senate Finance Committee

what is sharia finance?

Please give an overview of how sharia finance works. Outline the advantages and disadvantages to consumers.


Finance best answer:

Answer by cactusgene
Here is the explanation as taken from the website of the Islamic Bank of Britain and the explanation on wikipedia:

What is Islamic Finance? The basis for all Islamic finance lies in the principles of the Sharia, or Islamic Law, which is taken from the Qur'an and from the example of Prophet Muhammad (peace be upon him). The Islamic form of finance is as old as the religion of Islam itself.

Central to Islamic finance is the fact that money itself has no intrinsic value. As a matter of faith, a Muslim cannot lend money to, or receive money from someone and expect to benefit – interest (known as riba) is not allowed. To make money from money is forbidden – wealth can only be generated through legitimate trade and investment in assets. Money must be used in a productive way.

The principal means of Islamic finance are based on trading – it is essential that risk be involved in any trading activity. Any gains relating to the trading are shared between the person providing the capital and the person providing the expertise.

Islamic Bank of Britain is a stand-alone bank. We are not part of a larger conventional group that combines Sharia banking and conventional banking.

http://en.wikipedia.org/wiki/Islamic_banking

Finance

Rogers City Mayor Beach Hall Testifies Before Michigan Senate Finance Committee


Image by Michigan Municipal League (MML)
The Michigan Senate Finance committee Thusday, Nov. 4, 2010 took testimony on a package of bills that the League has been pushing for a couple of years. The League's Summer Minnick, Director of State Affairs for the League, testified along with Shea Charles, City Manager of Howell and Chair of the League's Municipal Finance committee as well as Beach Hall, Mayor of Rogers City on the importance of these bills. The bills, HBs 5550 - 5554 would, generally speaking, allow local communities the opportunity to refinance existing non-voted debt in order to better handle challenging fiscal times. Many communties have expressed an interest in these bills and the committee hearing is a great step forward in this process. The bills have already passed the House. There was a substitute adopted that made minor changes to the approval process and we now are optimistic that the bills will be passed at the next Senate Finance committee next week. This is one of the League's lame duck priorities and we are hopeful we can get the legislature to provide some tools for struggling municipalities before the end of this session! For more about the League and what we do go to mml.org. For additional blog posts by Summer Minnick and other League staff go here: www.mml.org/advocacy/inside208

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