Islamic Banking...

Discussion in 'Religion & Spirituality' started by SNBthetrue, Dec 16, 2009.

  1. I just wanted to know if Iran had a central bank...

    Obviously Wikipedia as an answer... However I don't understand... It's seems to me to be the same model as Propshop. LoL.

    " According to this law, Iranian banks can only engage in interest-free Islamic transactions. These are commercial transactions that involve exchange of goods and services in return for a share of the assumed "profit". Iran uses what are officially termed "provisional" interest rates, as rates paid to depositors or received from borrowers should reflect the profits or losses of a business.[8] Under these rules, deposit rates, known as "dividends", are in theory related to a bank's profitability. In reality, however, these dividends have become fixed rates of return—depositors have never lost their savings because of losses made by the banks and almost never received returns larger than the provisional ex-ante profit rates. Interest charged on loans is presented as "fees" or a share of corporate profits.[9]"

    I really don't get it... Some one would help me please ? Prop model or just the old fixed rate of interrest with a new name ?

    ( )
  2. Look under the last post when you asked the same question.
  3. So every one is like me and just don't get it ?

    Prop shop model ( take a share of the profit... ) providing "leverage" with a price...

    Interrest rate model