“Eager to safeguard the sector’s growth at a time when London is fighting to retain its status as Europe’s financial hub,” TheCityUK — which represents Britain’s banks and financial institutions — is now calling for the government “to make sure legislation is in place so that corporate Sukuk’s [Islamic bonds] can thrive.”
This directive indicates a new, heightened dependence on Islamic banking, a fact that has immense implications for the UK. “Legal risks for Islamic banks….are significant and arise for various reasons”:
First, as most countries have adopted either the common law or civil law framework, their legal systems do not have specific laws/statutes that support the unique features of Islamic financial products. For example, whereas Islamic banks’ main activity is in trading (murabaha) and investing in equities (musharaka and mudaraba), current banking law and regulations in most jurisdictions forbid commercial banks undertaking such activities
What this means is that Islamic banking presents a whole new system of finance. This new system may, and will at times, contradict Western banking norms, which are not based on the Sharia, but instead are intricately intertwined with a global free market system, incorporating global market trends. Islamic banking poses a market risk to the West. Breitbart reported that since February, the demand for “shariah-compliant banking” soared in the UK. And now:
The City’s top lobby group is urging the Government to make sure any laws introduced post-Brexit do not dent demand for Islamic finance as enquiries from banks to set up Shariah-compliant services soar.
The UK is headed for trouble. It already has a two-tier legal system, which has allowed Muslim rape gangs to abuse “white girls” en masse with little attention; it has at least 85 operational sharia courts that are “operating beyond the reach of British law“; and now, it is virtually requesting that Islamic banking rescue Britain due to Brexit.
This bears enormous implications for the West, considering the expansionary nature of Islam. Islamic jurisprudence breaks the world up into two abodes: the abode of War (dar al harb) and the abode of Islam (dar al Islam). The UK has not only compromised its legal system to Sharia norms; it is now poised to surrender its financial banking system as well.
“City urges Government to prioritise Islamic finance ahead of possible Brexit boom by Lucy Burton,” UK Telegraph, September 11, 2017:
The City’s top lobby group is urging the Government to make sure any laws introduced post-Brexit do not dent demand for Islamic finance as enquiries from banks to set up Shariah-compliant services soar.
TheCityUK, which represents Britain’s banks and financial institutions, has sent a 32-page report to the UK Government highlighting that assets of UK firms offering Islamic finance services surpassed $5bn (£3.8bn) in 2016, up 11pc in two years.
Eager to safeguard the sector’s growth at a time when London is fighting to retain its status as Europe’s financial hub, the group is calling on the Government to “make sure legislation is in place so that corporate Sukuk’s [Islamic bonds] can thrive,” said Wayne Evans, the group’s adviser in international strategy.
“We’re looking to keep lobbying, talking to HMG [Her Majesty’s Government], to make sure they are aware of the demand,” Mr Evans told The Telegraph. “Enquiries are certainly going up [but we] need to make sure new legislation being introduced [post-Brexit] doesn’t have an implication on Islamic finance.”
Britain was the first non-Muslim country to sell a bond that can be bought by Islamic investors, drawing over £2bn in bids when it issued the sovereign Sukuk in 2014. At the time, former chancellor George Osborne said promoting the industry, now worth over $2tr, could make Britain “the undisputed centre of the global financial system.”
While the UK’s status as a global financial hub is at risk due to Brexit – London’s lucrative euro-clearing market is under threat and the City is expected to lose as many as 40,000 sales, trading and investment banking jobs – Mr Evan’s said the move could encourage Islamic-compliant investment into the UK, provided new rules don’t end up limiting growth.
“If we see more trade with non-EU countries, and encourage more trade with them, then obviously having expertise and a Sharia-compliant string to your bow has got to be an advantage,” he said. “If the UK financial system is going to be more interested in Malaysia, say, then we have been in the past, then there will be more interest in Islamic finance……
marble says
Isn’t Brexit being blamed for great difference between interest and non-interest lending? Isn’t it an attack against UK extraction from EU and Globalist tyranny held by unelected dictators? What would happen were the central banks of the UK were to cease profiting from interest fees? Could this extend to the non-Federal non-Reserve non-Bank of the United States? Why two systems of law? Would Saudi Arabia allow open activity of western banks in Mecca?
Westman says
This is insane. Such a dangerous song and dance to avoid the “evil” Shari’a-prohibited interest on money.
The “Islamic” bank makes investments with depositors money and returns “profits” for the use of the money. That is investment banking, the very industry that almost destroyed the world economy due to investments in liar-loan mortgages. This house of cards was only saved(in the US) due to a Central Bank system where the US government guranteed loans out of the central bank to keep certain investment banks alive.
There is no Central Bank in Islamic Banking because that requires loans with “haram” interest. When this banking system crashes there is no recovery unless it robs assets from the conventional banking system or a government.
So let’s imagine a scenario in which the UK finds its Islamic Banking failing due to a collapse in commodity prices or other major investments. Muslim groups are about to take significant losses. There are riots in the streets and demands that the UK save the Islamic Banks – or else?
Any pretty solutions here? I understand greed; however, greed and stupidity is a combustible mixture.
gravenimage says
Yes–“Islamic finance” is all smoke and mirrors. I would not much care, but this is used to impose Shari’ah here, as well as to launder money for Jihad terrorism.
Guest says
There won’t be any money if they don’t focus on what comes after Brexit! The British are socialists and don’t know how to take care of themselves, also the rest of Europe are being bully’s and are refusing to do business. They must first learn to be self-sufficient. That means the government has to stop giving their lazy citizens money so they can earn it themselves
gravenimage says
Actually, Britain was not being supported by the EU–rather more the other way ’round, save for Germany.
Flavius Claudius Iulianus says
As I commented before, this the main reason UK’s leadership is so soft on Mohammadism; this is why the UK is so sharia compliant. Big middle eastern oil money. This is what will drive the UK to the brink and over it, myopic greed. Get out while you can.
I couldn’t find the article on JW but I could find the related one in the Daily Mail. It betrays what is driving this country to adopt suicidal governance.
http://www.dailymail.co.uk/news/article-3473543/The-building-used-house-members-Royal-Family-Sea-Lords-Admiralty-House-governed-SHARIA-LAW.html
gravenimage says
The Saudis are running out of oil. Can’t happen fast enough.
UNCLE VLADDI says
Sharia allows and even encourages muslims to use usury to enslave infidels, much like Deuteronomy 15:5 and 6.
gravenimage says
Muslims take issue with interest, but are fine with kidnapping, ransom, piracy, and enslavement.
There is no morality in Islam.
do the math says
No interest for infidels ?
do the math says
Okay.
I just saw Uncle Vladdi’s comment.
My only excuse is that it’s 3:38 am.
Pet Charles says
Please be advised the Gross National Product of Saudi Arabia, arguably the wealthiest Arab country, is equivalent to that of the State of New Jersey!! Islamic banking is a relatively negligible part of banking! Notice that the article did not say that any other nation is in a bidding war for the Islamic bank services in UK or that the Islamic banks are threatening to move elsewhere. It is simply trying to get more Sharia in UK legal system.
gravenimage says
Yes–Shari’ah finance is largely a canard.
John Forbes says
The ELITE & the TIES to ISLAMIC finances are one real reason that the UK will certainly become an ISLAMIC STATE !
The elite & the banking system have already SOLD OUT & see no reason to put up a FIGHT about something that could care less about like FREE SPEECH or RELIGION or what happens to the GENERAL POPULATION !
WorkingClassPost says
I once worked for a UK bank, and some 15 years ago they were boasting about putting together a portfolio of Islamic Financial ‘products’.
They saw it only as an untapped money making opportunity, and there was not, and would never be, any thought for the ramifications.
Where ignorance is bliss…
John Forbes says
The ISLAMIC BANKING system will KILL CHRISTIANITY & DEMOCRACY in Britain.
The CORPORATION THAT IS THE GOLDEN MILE OF LONDON – CARES NOT ABOUT CIVIL LIBERTIES, CHRISTIANITY OR DEMOCRACY ! ONLY BANK PROFITS MATTER !
HAVING TOSSED ALL FAITH ONTO THE SCRAP HEAP THEM SELVES – THEY HAVE NO INTEREST IN IT & DO NOT EVEN CONSIDER IT AS AN ISSUE !
IN THE UK DEMOCRACY WILL BE CASUALLY TOSSED ASIDE & THE PEOPLE ABANDONED AS THE WHITE CHILDREN ARE NOW AS THE MUSLIM RAPING GROUPS TOUR THE COUNTRY UN OPPOSED & NOT IN THE LEAST AFRAID OF ANY CONSEQUENCES !!
Carolyne says
Nationalize the Islamic banks, confiscate their assets and use them to rebuild the country’s infrastructure and close Islamic doors. Problem solved.
gravenimage says
There are not a lot of Islamic banks–part of the reason Muslims are pressuring Western banks to offer “Shari’ah compliant banking”.
John Forbes says
Caroline – it took the UK over 20 years to put Anjem Chaudry in prison for 5 years at a cost of millions .
It coast 8 million pounds to get Abu Katada on a Plane to Jordan & years of work !
It cost upwards of 3 Million Pounds to get the TELFORD CHILD RAPISTS behind bars & one of the NASTY BASTARDS is due for early RELEASE after 5 years – having been given a HERALDED 18 years !
The UK cannot manage to STOP CHILD RAPE across the UK let alone deal with ISLAMIC FINANCE !
Your elite have sold OUT – LONG AGO I am afraid !
Before the MIDDLE of the CENTURY the UK will be well on the way to being an ISLAMIC STATE & SHARIA will be in place nationally & DEMOCRACY will be gone !!
gravenimage says
UK banks’ lobbying group urges government to prioritize Islamic banking ahead of Brexit
…………………
In other words, why concern yourself with British independence when you can spend your energies caving in to Muslim demands, instead?
Suicidal insanity.