The End - 2000 to 2009

By Lorenzo Totaro

March 4 (Bloomberg) — The Vatican said banks should look at the rules of Islamic finance to restore confidence amongst their clients at a time of global economic crisis.

“The ethical principles on which Islamic finance is based may bring banks closer to their clients and to the true spirit which should mark every financial service,” the Vatican’s official newspaper Osservatore Romano said in an article in its latest issue late yesterday.

Author Loretta Napoleoni and Abaxbank Spa fixed income strategist, Claudia Segre, say in the article that “Western banks could use tools such as the Islamic bonds, known as sukuk, as collateral”. Sukuk may be used to fund the “‘car industry or the next Olympic Games in London,” they say.

Pope Benedict XVI in an Oct. 7 speech reflected on crashing financial markets saying that “money vanishes, it is nothing” and concluded that “the only solid reality is the word of God.” The Vatican has been paying attention to the global financial meltdown and ran articles in its official newspaper that criticize the free-market model for having “grown too much and badly in the past two decades.”

The Osservatore’s editor, Giovanni Maria Vian, said that “the great religions have always had a common attention to the human dimension of the economy,” Corriere della Sera reported today.

To contact the reporter on this story: Lorenzo Totaro in Rome at ltotaro@bloomberg.net

Source: Bloomberg


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  • 13 Responses for "Vatican Says Islamic Finance May Help Western Banks in Crisis"

    1. Dawud Israel March 11th, 2009 at 5:31 pm

      When I read stuff likes this…it makes me wonder if these are the people that will revive Islam…

    2. Dawud Israel March 11th, 2009 at 5:31 pm

      (Remember the hadith about conquering Rome–perhaps it did not imply a military conquest, but an intellectual one?)

    3. Shazan March 11th, 2009 at 7:14 pm

      Yea! Look guys! we conquered Rome (intellectually) !!!

      Sorry bro, but that was the most pathetic thing I’ve heard all day

    4. booGaBooWhozDaSpook? March 11th, 2009 at 11:41 pm

      maybe we can noq all hold hands and sing kumbaya!

    5. Faisal March 12th, 2009 at 12:00 am

      As-salamaulikum,

      Its really surprising that the “Vatican” is looking at Islam through the Shariah of Finance and not the Aqeedah (Creed) of Islam.

      Subhanallah..

      This just highlights the verse:

      Verse 6-7, Surah Baqarah

      “Indeed, those who disbelieve – it is all the same for them whether you warn them or do not warn them – they will not believe.

      Allah has set a seal upon their hearts and upon their hearing, and over their vision is a veil. And for them is a great punishment.”

    6. sheilaX March 12th, 2009 at 3:54 am

      Shalom,

      The principles underlying Islamic finance are noble and based on lofty ideas of entrepreneurship and transparency. However, it is far from certain what form it will eventually take. I believe that the fiqh of operating an Islamic banking and finance institution in a predominantly capitalist market is not yet stablized. This has far-reaching implications on the meeting of global auditing standards, though some might be tempted to ask in the wake of the current economic meltdown, “what standards?”

    7. Dawud Israel March 12th, 2009 at 3:24 pm

      What I meant was this is the beginning of their hearts opening up to Islam and them converting to the deen. More unbelievable things have happened (the Mongol hordes converting to Islam?) so I don’t understand why that seem impossible to you.

      Allahu ala kulli shay’in qadeer- Verily, Allah has power over all things.
      If we believed in Allah’s Strength, rather than believed in the strength of the kuffar, perhaps this wouldn’t seem so absurd.

    8. Shazan March 13th, 2009 at 8:22 pm

      I apologize for being rude earlier and I love you for the sake of Allah swt.
      But seriously bro, the vatican says western banks should look into using sukuk …and they are reviving Islam?
      Vatican says that western banks should look at rules employed by Islamic finance …and we have conquered Rome?

      Have we really sunk that low, to sift through articles and press releases until we find one we like and hold it up and cheer.

      I never said I dont believe in the strength of Allah swt .. naudubillah. But we need to remind ourselves of what Allah swt says in surah 13 verse 11: Allah changes not the condition of a people until they first change what is in themselves

    9. Dawud Israel March 15th, 2009 at 4:17 pm

      Shazan: Brother, I would appreciate it if you didn’t take my words so seriously and understand it’s just a thought. Am I allowed that much?

      I am NOT saying we have conquered or that they are reviving Islam. I am saying that perhaps this is the beginning of Allah opening their hearts to Islam and perhaps they will be the ones who will replace us. Look at what we have become…so argumentative and contentious…and over what?

      If your goal is to waste time, then my congrats to you in achieving that.

    10. Shazan March 15th, 2009 at 10:59 pm

      Yes you’re allowed 😀
      But it seems if I voice my thoughts, Im accused of being argumentative and contentions :)

      Just reminding you that it takes two people to argue. So you can congratulate yourself as well :)

      SalamuAlaikum

    11. Prof. Muhamed Ali, Kadambot March 19th, 2009 at 12:42 pm

      Nothing is impossible. Vathican so far stood for the values that found correct, in the past. Now it comes forward to more light that there are again light among other religions like Islam, that stands on revelation and follw the path of a prophet who glorified Jesus as a prophet of God. I say things are coming closer and clear. Even calamities can make eyes open, perhaps.

    12. Harun March 20th, 2009 at 1:20 pm

      The Banking System Is Based Upon The Doctrines Of The Jewish Holy Of Hollies Which Is The Talmud. Dawud Israel Being A Jew Hates The Mere idea That The Vatican Gives Due Respect Of An Islamic Law, Though It Was Spoken Out In A Low Tone Lest The Jewish Bishopes Get Angry At Him. Jews Have Declared War On Islam. They Will never Stop Untill The Day God Destroys The Perpetrators, Who Are The Most Hated People To His Heart…!!?? Once And For All….!!?? Amen..

    13. Harun March 20th, 2009 at 1:43 pm

      Dawud Israel..
      “Western Banks” is a missnomer..Western banks are Jewish Banks run and owned by the Jewish Emperor who is the oldest male of the Rothschild Tribe of families. Families who have already hijacked the political power of the of the royal families of Briton and Europe and the oligarchical families ruling the USA.. These ar the Peritrators of all evil befallen on all nations on earth… They are the ones behind Blair and Bush to destroy the people of Afghanistan and Iraq.. They are the once behind the election of Obama to take the responsibility to destroy The Sudan, Egypt and Pakistan… Just wait and see.. They are also behind the Creation of a Jewish state in Palestine..and the arogans of their leaders… Just wait and see and remember .. The words I tell you now..

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