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Islamic Banking Began in Pakistan in the 1950's.

Reader comment on item: The Religious Roots of Turkey's Currency Crisis
in response to reader comment: If Turkey's Islamic fiscal policy is sinking its currency, why didn't that happen to past Islamic societies?

Submitted by Robert (United States), Jan 2, 2022 at 18:35

I agree with most of Dr. Daniel Pipes views. But I do not agree that Muslims found a "trick" to get around the prohibit against Interest. Instead, Muslims found creative ways to avoid "Interest" by replacing it with "Profit."

Here is an EXCERPT [Block Quote] from a reputable source (International Chamber of Commerce [ICC]) "A Brief History of Modern Islamic Finance" (the link to the quote Site is on the bottom):

"A brief history of modern Islamic finance
While Islamic finance is as old as the religion itself, the establishment of dedicated financial institutions and banks happened in the 20th Century.
Here are some of the key historical events that led to the evolution of today's modern Islamic finance system:
• 1950s: The first, experimental, local Islamic bank was established in the late 1950s in a rural area of Pakistan which charged no interest on its lending.
• 1963: The first modern Islamic bank on record was established in rural Egypt by economist Ahmad Elnaggar to appeal to people who lacked confidence in state-run banks.
• 1973: The influx of "petro-dollars" and a "general re-Islamisation" following the 1973 oil crisis encouraged the development of the Islamic banking sector, and since 1975 it has spread globally.
• 1975: The Islamic Development Bank was set up with the mission to provide funding to projects in the member countries.
• 1979: The first modern commercial Islamic bank, Dubai Islamic Bank, was established as well as the the first Islamic insurance (or takaful) company — the Islamic Insurance Company of Sudan..
• 1980 to 1985: Islamic investments underwent a large expansion throughout the Muslim world, attracting deposits with the promise of "great gains" and "religious guarantees" supplied by Islamic jurists who issued fatwas denouncing conventional banks and recommending their Islamic rivals.
• 1986: The Amana Income Fund, the world's first Islamic mutual fund (which invests only in sharia-compliant equities), was created in Indiana.
• 1990: An accounting organization for Islamic financial institutions (Accounting and Auditing Organization for Islamic Financial Institutions, AAOIFI), was established in Algiers by a group of Islamic financial institutions (currently headquartered in Bahrain). The Islamic bond market also emerged in 1990, when the first tradable sukuk — the Islamic alternative to conventional bonds — were issued by Shell MDS in Malaysia.
• 1995: 144 Islamic financial institutions had been established worldwide, including 33 government-run banks, 40 private banks, and 71 investment companies.
• 1996: The large US-based Citibank began to offer Islamic banking services when it established the Citi Islamic Investment Bank in Bahrain.
• 1999: The first successful benchmark for the performance of Islamic investment funds was established, with the Dow Jones Islamic Market Index (DJIMI).
• In 2002, the Malaysia-based Islamic Financial Services Board (IFSB) was established as an international standard-setting body for Islamic financial institutions.[1]
Two decades on and global Islamic finance assets have increased to USD 2.8 trillion in 2019 and forecasted to reach USD 3.7 trillion by 2024 according to Islamic Finance Development Report 2020."
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https://icc.academy/islamic-finance-guide/

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