The number of Muslims in Russia is difficult to determine precisely, as there are no official statistics on the religion in the country. Different sources give different data, which sometimes differ significantly. Some officials and media refer to the figure of 20 million people, but this is disputed and may be an overestimate. This figure may come from the 1989 census, when Russia was part of the USSR and had many more Muslim republics. According to other studies, the number of Muslims in Russia may be as high as 15 million, or about 10% of the population.

On September 1, Islamic banking began to work in Russia.

It’s a government experiment. It is launched in four regions – Tatarstan, Bashkiria, Chechnya and Dagestan, Komsomolskaya Pravda reported.

Link to the original https://www.kp.ru/daily/27549/4817002/

The pilot project will last for two years. The cabinet will then consider whether it is worth expanding to the whole country. In the meantime, we will understand what this phenomenon is and why it is necessary.

The main feature of Islamic banking is that there is no such thing as interest in it.

According to Sharia, it is simply impossible to give and take money for interest – it is haram – forbidden.

This is a limitation for both savers and borrowers.

The question is reasonable, how can banks live if they are deprived of the opportunity to take and give money for interest?

After all, this is the point of their work. Will they do charity work?

That’s right – I won’t and I won’t. But there is a way out, the publication points out.

NOT AN INVESTOR BUT A PARTNER

What is a contribution? In fact, we entrust the money to the bank, and it spins and spins it as it wants: invests in shares, lends to other customers, etc. The main thing is that at the end of the deposit period, the bank returns the money to us with interest.

But for a depositor who wants to observe all the norms of Islam, it is very important how the bank „turns and turns“ his money.

What if he invested them in something forbidden to Muslims – for example, shares in a distillery?

Also, remember that usury (lending money for interest) is haram – forbidden!

Therefore, in Islamic banking there is a scheme of so-called peer financing.

The customer who brings money to the bank, according to the documents, becomes not a depositor, but a partner of the bank in its business.

And the bank shares the profit with him. At the same time, the bank can invest its customers’ money only in projects permitted by Islam.

For example, it is impossible to finance the production and sale of tobacco and alcohol products, pork, weapons, as well as the gambling business.

An Islamic bank can also invest in stocks. According to Sberbank Peer Financing Center, there are at least 18 shares of companies on the Russian stock market that can be defined as halal. Among them are Alrosa, Magnit, Novolipetsk Iron and Steel Works, Yandex, Tatneft and Novatek.

And the result for all customers is the same. If the bank gives a deposit of 10% per annum, then this 10% will be received by both the „ordinary“ customer and the depositor under Islamic banking. The difference is only in the wording that will be written in the contract.

Credit in Islamic banking works in a similar way.

Let’s say a customer requests a loan for a laptop. And then the bank, acting according to Islamic rules, will buy that laptop for him and then sell it on payment at an inflated price. In fact, the bank in this case becomes an intermediary and sells the equipment at a higher price, including its profit in the cost price.

Now let’s take an Islamic mortgage.

It has been published for several years. In particular, one of the big banks comes from Tatarstan.

There really isn’t a percentage. As installments, equal payments. Free?

The site has a calculator. It turns out that for the use of a loan of 1.8 million rubles for 5 years, an additional 724 thousand rubles will have to be paid. This corresponds to an interest on the loan of 14.2% per annum. This is the normal mortgage rate. No more no less.

That is, whatever you call it – interest or loan overpayment – but an Islamic bank will charge you extra money for using borrowed money. For religious people, this matters. And for secular customers, there is no difference between Islamic credit and ordinary credit.

In this case, a reasonable question arises. Why then is this Islamic banking necessary, if its services differ from ordinary deposits and loans only by the wording in the documents?

In fact, the concern here is not primarily with individuals.

In the era of sanctions, the Western investor is reluctant to go to Russia.

And foreign investments are necessary for the development of the economy.

And the law on Islamic banking, according to experts, will help attract capital to Russia from the Middle East.

According to the Islamic Private Sector Development Corporation, the volume of the Muslim financial system in the world is about $4 trillion
And part of this money can already come to Russia.

In particular, negotiations are already underway with conservative investors from Turkey and Iran.

EXPERT OPINION

Islamic banking is more about ethics than business

Lazar Badalov, Associate Professor, Department of Economics, MISIS National Research and Technological University:

– It is not quite right to compare Islamic banking with Western European banking in terms of competition. The fact is that the differences are not related to competitive advantages, but to ethical and religious norms.

For example, Western European banking provides for the provision of a loan against interest, i.e. increasing money by borrowing it.

But in Islamic banking, usury is prohibited. Instead of a loan, Islamic banks can provide financing by setting up a joint venture with partners to share the profits received from investment in the project in the future.

It turns out that with a regular loan, the bank, regardless of the performance of the borrower, will require him to repay the debt plus interest.

In turn, Islamic banks tie debt repayment to project results, which simply demonstrates the ethics of Islamic business.

If I am not a Muslim, will they give me such a loan?

No one will force you to recite the Koran in the bank office. The law prohibits any discrimination, including on religious grounds. That is, anyone can get an Islamic mortgage or open a deposit according to Sharia norms. And here everything will be decided by the competition between traditional and Islamic banks. If the latter can give more favorable conditions, then they will attract more „partners“, regardless of their religion.

Islamic financing mechanisms operate in 136 countries around the world. At the same time, Islamic banks, due to their conservatism, are more likely to survive financial crises.

For example, during the subprime crash of 2008, they did best because they did not invest in risky securities (unlike Western banks that chased excess profits). Sharia prohibits all risky investments and complex financial instruments.

Материалът Islamic banking was launched in Russia: Interest is prohibited е публикуван за пръв път на Vihrogon.bg.