Moinuddin Malim, chief executive for Mashreq al Islami Bank, said that financial products that adhere to Islamic teachings will only appeal to the wider western world if they adopt the phrase ‘ethical banking’ instead.
He said that too many people in the UK do not equate ‘ethical’ finance with ‘Sharia’-based products.
Mr Malim said: “What is Islamic banking? It is ethical banking. A lot of people just think that it is only for Muslim, and it is not - it is for everyone.
“But the problem is that it doesn’t appeal to non-Muslim investors in Europe, primarily because they do not understand the various Arabic phrases.
“It really needs to be de-jargoned. So perhaps the term ‘ethical’ maybe an alternative term to help theses Islamic principles gain wider appeal and grow in UK and Europe.”
The three-day event, which began on Monday, 22 November is now in its 17th year, and aims to highlight the strengths and challenges of Islamic finance.
During the conference, the UK Islamic Finance Secretariat, together with UK Trade & Investment, also hosted a roundtable discussion, looking at new opportunities within Islamic banking in the light of the global economic recovery, and examining future growth prospects for the industry.
Source : http://www.ftadviser.com/FinancialAdviser/Investments/Sector/EthicalAndSRI/News/article/20101125/a390e556-f649-11df-a28b-00144f2af8e8/Islamic-banking-terms-need-a-western-label.jsp - Nov 25, 2010
UK - Islamic banking needs a "Western label"- Here is the weekly teaser.
ReplyDeleteArabic terminology might be confusing for the outsider, but they cover the substance better than the "close to - but not the same" English translations. Using the English words creates confusion (just as "interest" did for "riba")- An Islamic bank does not necessarily invest in environment / eco friendly technology (one of the cornerstones of "ethical" finance Western style), but then again not every ethical bank is an Islamic bank. The two terms are not at all interchangeable.
Does Moinuddin Malim want to create even more confusion by mixing up things even more, or is he on the other hand clearing things out for us ?
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