1. "Islamic banking encourages people to take Islamic financing and encourage people to be in debt".
Islamic banks offer Islamic alternative to people who are in need financially. Rather than they take loan with interest, which is prohibited in Islam, Islamic banking provides Halal alternative. Islamic banking is not supposed to "sell" Islamic financing like the conventional banks. Islamic way of marketing plan should be different as we provide solution and assistance to those who are in need rather than promoting customers to take debt.
2. "Islamic banking creates debt similar to conventional bank, hence they are the same"
In substance, Islamic banking creates economic outcome very similar to debt. However, the contract of rights and obligations are based on Bai' i.e. buying and selling at transparent mark-up. Hence, the legal form is markedly different. The profit is not riba. The perception that Islamic financing leads to the same outcome as the conventional bank may not hold truth. Islamic banking provides an arrangement that is more ethical as it is based on mutual need and benefit.
3. "Islamic banking treated debtors similar like conventional bank including harassing customers who are not able pay back on time or failure to pay"
Islamic banking is expected to treat customers and debtors differently. If they are unable to pay, they are normally given opportunity to restructure their financing and debt. The Islamic bank may give them more time or reduce the installment to assist the customers. However, if the customers are hardcore debtors then the Islamic bank has the right to repossess the asset as the customers have mutually agreed when they signed the agreement to take the Islamic financing. Islamic debt collection policy should enable both the customers and the banks to be protected according to Shari'ah. In Islam, the role of debtors and creditors is to make sure that both parties fulfill their rights and obligations according to the agreed contracts.
Islamic banks offer Islamic alternative to people who are in need financially. Rather than they take loan with interest, which is prohibited in Islam, Islamic banking provides Halal alternative. Islamic banking is not supposed to "sell" Islamic financing like the conventional banks. Islamic way of marketing plan should be different as we provide solution and assistance to those who are in need rather than promoting customers to take debt.
2. "Islamic banking creates debt similar to conventional bank, hence they are the same"
In substance, Islamic banking creates economic outcome very similar to debt. However, the contract of rights and obligations are based on Bai' i.e. buying and selling at transparent mark-up. Hence, the legal form is markedly different. The profit is not riba. The perception that Islamic financing leads to the same outcome as the conventional bank may not hold truth. Islamic banking provides an arrangement that is more ethical as it is based on mutual need and benefit.
3. "Islamic banking treated debtors similar like conventional bank including harassing customers who are not able pay back on time or failure to pay"
Islamic banking is expected to treat customers and debtors differently. If they are unable to pay, they are normally given opportunity to restructure their financing and debt. The Islamic bank may give them more time or reduce the installment to assist the customers. However, if the customers are hardcore debtors then the Islamic bank has the right to repossess the asset as the customers have mutually agreed when they signed the agreement to take the Islamic financing. Islamic debt collection policy should enable both the customers and the banks to be protected according to Shari'ah. In Islam, the role of debtors and creditors is to make sure that both parties fulfill their rights and obligations according to the agreed contracts.
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