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Riba-Free (Riba-Free (IslamicIslamic)Banking and )Banking and FinanceFinance
A New Life style For 21A New Life style For 21stst CenturyCentury
The Art of Islamic Banking and The Art of Islamic Banking and Finance in AmericaFinance in America Dr. Yahia Abdul-Dr. Yahia Abdul-RahmanRahman
YARAHMAN@WhittierBank.com +1-626-818-0855 +1-626-818-0855 Founder of Founder of :The LARIBA System - Since 1987:The LARIBA System - Since 1987www.LARIBA.com ; ; www.WhittierBank.com
Islam and Economy Symposium
Sabahattin Zaim UniversitySabahattin Zaim UniversityIstanbul, Turkeya - December 10Istanbul, Turkeya - December 10thth , 2011 , 2011
1997 ANNUAL RECOGNITION AWARD FOR EXCELLENCE AND SIGNIFICANT CONTRIBUTIONS IN:L.A.R.I.B.A. BANKING AND FINANCE
Prof. Sabahattin Zaim Dean of the Economics Department,
Sakarya University, Turkey, 1997
Another Banking and Another Banking and Finance Finance DisciplineDiscipline
RFRF Banking and FinanceBanking and Finance
RFRF RRiba-iba-FFreeree
RRibit-ibit-FFreeree
RResponsible esponsible FFinanceinance
RF Banking RF Banking Since 1987 Since 1987 - - Our Motivation Our Motivation Open A Window for Interfaith Peace, Mutual Respect Open A Window for Interfaith Peace, Mutual Respect
and Harmony Through and Harmony Through RFRF Financ Financee
Build Communities by Serving All People of Build Communities by Serving All People of All FaithsAll Faiths
Empower All to Own a Car, a Home and a Empower All to Own a Car, a Home and a Business to Benefit from and Integrate in the Business to Benefit from and Integrate in the American Life Style by American Life Style by Using the RF Using the RF Financing DISCIPLINEFinancing DISCIPLINE
Do Not Run After “Oil Money.” Do Not Run After “Oil Money.” We We Put Our Money Where Our Mouth Is! Put Our Money Where Our Mouth Is! All All Our Money is from US Community.Our Money is from US Community.
RF BankingRF BankingWhat is in a Name? What is in a Name? Communicate using Communicate using Language of the People – ENGLISH!Language of the People – ENGLISH!
RibaRiba: : Known but not Universally Understood by Known but not Universally Understood by All Muslims. It is usually mistranslated as All Muslims. It is usually mistranslated as
InterestInterest. It is SAME AS . It is SAME AS RibitRibit in the Old and in the Old and New Testaments but Almost Unknown to Many. New Testaments but Almost Unknown to Many.
We call itWe call it: : RF Banking RF Banking (Riba/Ribit-Free)(Riba/Ribit-Free)
UsuryUsury:: Paying a Rent for the Use of Money by Paying a Rent for the Use of Money by Original Catholic Church. Relaxed Later to Mean Original Catholic Church. Relaxed Later to Mean
Excessive Excessive InterestInterest We Consider Both to be We Consider Both to be RibaRiba
RF BankingRF BankingWhat is in a Name? What is in a Name? Communicate using Communicate using Language of the People – ENGLISH! Be Sensitive!Language of the People – ENGLISH! Be Sensitive!
Shari’aa (Canon)Shari’aa (Canon): : Understood in Majority Understood in Majority Muslim Countries but NOT in the West, How Muslim Countries but NOT in the West, How About It’s Meaning in the Language of the Land: About It’s Meaning in the Language of the Land:
the the Judeo-Christian-Islamic Discipline.Judeo-Christian-Islamic Discipline. Islamic BankingIslamic Banking: : Is it Only for Muslims? Is it Only for Muslims? May May
Be Acceptable in Muslim Lands and Some Non-Be Acceptable in Muslim Lands and Some Non-Muslim Lands (Muslim Lands (Expediency??Expediency??) What Happens if ) What Happens if Citibank or Goldman Sacks are Renamed The Citibank or Goldman Sacks are Renamed The Christian or Jewish Bank of America? We call it Christian or Jewish Bank of America? We call it
what it really is: what it really is: RF BankingRF Banking Be sensitiveBe sensitive
Riba/Ribit-Free Riba/Ribit-Free RF Life Style RF Life Style in Americain AmericaAre You Trying to Change The Seating Are You Trying to Change The Seating Arrangements on the Titanic?Arrangements on the Titanic?
Our Approach:Our Approach:– Seek Permission of the Captain to Rearrange Seek Permission of the Captain to Rearrange
a Small Space and Obey the Rules.a Small Space and Obey the Rules.– If We Prove that Our Approach is Good and If We Prove that Our Approach is Good and
Offers An Added Value, Others will Follow.Offers An Added Value, Others will Follow.
RF BankingRF Banking – – It Is A Dscipline!It Is A Dscipline!Articulating our Judeo-Christian-Islamic Articulating our Judeo-Christian-Islamic Value SystemValue System
Riba/Ribit Is Prohibited by All FaithsRiba/Ribit Is Prohibited by All Faiths – – Specially the in Specially the in Judeo-Christian-Islamic Judeo-Christian-Islamic Value System. Value System. It is prohibited in Buddhism and Hinduism. It is for All It is prohibited in Buddhism and Hinduism. It is for All People and NOT Exclusive to Muslims. People and NOT Exclusive to Muslims.
We Do Not Rent MoneyWe Do Not Rent Money (which is Riba/Ribit). We (which is Riba/Ribit). We invest with and in People. WE RESPECT MONEYinvest with and in People. WE RESPECT MONEY
CrCredit is a Human Right edit is a Human Right - - We Serve All People We Serve All People Regardless of Faith, Color, National Origin, Gender, Regardless of Faith, Color, National Origin, Gender, Social Status, Language, Age or Marital Status.Social Status, Language, Age or Marital Status.
We Do Not DiscriminateWe Do Not Discriminate while Recruiting or while Recruiting or Serving the Community.Serving the Community. We Treat All Fairly We Treat All Fairly Customers, Staff and Shareholders.Customers, Staff and Shareholders.
RF BankingRF BankingArticulating our Value System (contd.)Articulating our Value System (contd.)
We Offer the Added ValueWe Offer the Added Value of Making of Making Certain It is a Prudent Investment. Certain It is a Prudent Investment. The new The new Macro: Commodity Indexation and Micro: Marking Macro: Commodity Indexation and Micro: Marking to Market RF Disciplinesto Market RF Disciplines
We Commit to Circulate Community We Commit to Circulate Community Deposits Back in the CommunityDeposits Back in the Community to Generate to Generate Economic Prosperity, Job Opportunities and Social Economic Prosperity, Job Opportunities and Social Peace.Peace.
We Do Not: Speculate, “Sell or Buy” Loans, We Do Not: Speculate, “Sell or Buy” Loans, Broker “Loans” & “Deposits” or “Sell” Broker “Loans” & “Deposits” or “Sell” Loan Servicing.Loan Servicing.
Published by John Wiley & Sons Intl.Published by John Wiley & Sons Intl. Published January 2010Published January 2010
Chapter 2Chapter 2
The Prohibition of The Prohibition of Riba/Ribit/ Usury in Riba/Ribit/ Usury in The Judeo-Christian-The Judeo-Christian-Islamic Value SystemIslamic Value System
The Prohibition of The Prohibition of RibitRibit (Old/New Testament) or (Old/New Testament) or RibaRiba (the Qur’aan) (the Qur’aan)
The Original Jewish Teachings: The Original Jewish Teachings: A Person of A Person of the Jewish Faith who Participates in Ribit the Jewish Faith who Participates in Ribit Cannot Stand as a Witness in a Jewish court Cannot Stand as a Witness in a Jewish court ..
The Old Catholic Teachings : The Old Catholic Teachings : A Person Who A Person Who Deals in Ribit is Denied a Catholic Burial .Deals in Ribit is Denied a Catholic Burial .
The Qur’aan : The Qur’aan : Charging of Ribit / Riba is one Charging of Ribit / Riba is one of the Most Severe Offenses Against God, His of the Most Severe Offenses Against God, His Prophets and all of God’s creations - Prophets and all of God’s creations - GhararGharar
Published by John Wiley & Sons Intl.Published by John Wiley & Sons Intl. Published January 2010Published January 2010
Chapter 3Chapter 3First Time in Ribit/Riba Free (Islamic) First Time in Ribit/Riba Free (Islamic)
FinanceFinance
Money and The Rules of:Money and The Rules of:Commodity Indexation Commodity Indexation An An
Approach to Monetary Valuations Approach to Monetary Valuations Macro AnalysisMacro Analysis
Marking To the Market Marking To the Market Micro AnalysisMicro Analysis
Fair Pricing and Prudent InvestingFair Pricing and Prudent InvestingApplying RF Rules Applying RF Rules Financing Homes and Commercial ActivitiesFinancing Homes and Commercial Activities
Marking-To-Market RuleMarking-To-Market Rule
IIn Trading or in Buy/Sell Agreement, the Item n Trading or in Buy/Sell Agreement, the Item Involved has to beInvolved has to be Marked-to-Market Marked-to-Market ::To Keep Market Equilibrium and to Ascertain that the To Keep Market Equilibrium and to Ascertain that the Investment is Prudent , Not Speculative and is Free of Investment is Prudent , Not Speculative and is Free of Deception (Deception (GhararGharar))
How To How To Mark-To-MarketMark-To-Market?:?: Prudent Investing Prudent Investing House:House: Market Rental Value Market Rental ValueCommercial Building: Commercial Building: Lease RateLease RateCommodities:Commodities: As per Other Commodity As per Other CommodityFranchise Services: Franchise Services: Fair Market Value and Fair Market Value and
Rate,Rate,Services: Services: Market Rate of A Similar ServiceMarket Rate of A Similar Service
Back To The Future! Back To The Future! RIBA-FREE BANKINGRIBA-FREE BANKING Living The Real Riba-Free Life StyleLiving The Real Riba-Free Life Style
What is Money?What is Money?
Store of Value:Store of Value: Gold & Silver Gold & Silver
Store of Strategic StocksStore of Strategic Stocks : Food Staples : Food Staples
Medium of Exchange (Medium of Exchange (Measuring Device)Measuring Device):: FiatFiat (Paper)(Paper)
Prohibition of Ribit/Riba:Prohibition of Ribit/Riba:Financing Business and Commercial ActivitiesFinancing Business and Commercial Activities
Commodity Indexation RuleCommodity Indexation Ruleبالملح الملح و بالبر البر و بالفضة الفضة و بالذهب بالملح الذهب الملح و بالبر البر و بالفضة الفضة و بالذهب الذهب
اآلخذ ، أربى فقد استزاد أو زاد فمن ، بيد يدا بمثل اآلخذ مثال ، أربى فقد استزاد أو زاد فمن ، بيد يدا بمثل مثالسواء المعطى سواء و المعطى )((و البخارى و )أحمد البخارى و أحمد
Use of Reference Commodities to Price ThingsUse of Reference Commodities to Price Thingsin the Market:in the Market:
1.1. Precious Metals:Precious Metals: Gold & SilverGold & Silver
2.2. Basic Food staples: Basic Food staples: Wheat, Barley, Dates and SaltWheat, Barley, Dates and SaltWhen Dealing in Terms of Reference CommodiWhen Dealing in Terms of Reference Commoditiesties
– No Increase Due to Non-Payment in Time or Time No Increase Due to Non-Payment in Time or Time Value of Debt Value of Debt
– No Increase /Same Commodity No Increase /Same Commodity
History and The Broken Monetary System: History and The Broken Monetary System: The Dollar Made As Good As GoldThe Dollar Made As Good As Gold
After WWII – Bretton Woods AgreementAfter WWII – Bretton Woods Agreement::
Gold at $35 per Ounce (Gold Window)Gold at $35 per Ounce (Gold Window) International Monetary Fund, IMFInternational Monetary Fund, IMF World BankWorld Bank World Trade AgreementWorld Trade Agreement
Prices!Prices!Paper (Paper (fiatfiat) Money and Gold) Money and Gold
President Nixon – 8/1971 President Nixon – 8/1971
Closes The Gold Window – Gold $35/OzCloses The Gold Window – Gold $35/Oz
Gold $/Oz: Gold $/Oz: 1971 = $351971 = $35 2011=$17002011=$1700
48X48X Oil Price Per barrel: Oil Price Per barrel: 1971 = $2.20 1971 = $2.20 2011=$100 - 2011=$100 -
$110$110
48X48X
Applying RF Commodity Indexation RuleApplying RF Commodity Indexation RuleAvg. Home Price in US in US$Avg. Home Price in US in US$
Early Warning For Price Bubbles Early Warning For Price Bubbles Applying RF Rules Applying RF Rules Home Prices in Ounces of Gold Home Prices in Ounces of Gold Source: LARIBA Research CenterSource: LARIBA Research Center
Early Warning For Price Bubbles Early Warning For Price Bubbles COMMODITY INDEXATION RULECOMMODITY INDEXATION RULEPrice of Gold in Terms of OilPrice of Gold in Terms of OilAn Average of 14 Barrels/Oz Gold An Average of 14 Barrels/Oz Gold
Early Warning For Price BubblesEarly Warning For Price BubblesCOMMCOMMODITY INDEXATION RULEODITY INDEXATION RULEPrice of Wheat in GoldPrice of Wheat in Gold
Early Warning For Price Bubbles Early Warning For Price Bubbles
Applying RF Commodity Indexation RuleApplying RF Commodity Indexation RulePricing of S&P 500 in Terms of GoldPricing of S&P 500 in Terms of Gold
Early Warning For Price Bubbles Early Warning For Price Bubbles Applying RF Rules Applying RF Rules COMMODITY INDEXATION RULECOMMODITY INDEXATION RULEPrice of Natural Gas in Terms of GoldPrice of Natural Gas in Terms of Gold
Early Warning For Price Bubbles Early Warning For Price Bubbles Applying RF Rules Applying RF Rules
Financing Homes and Commercial ActivitiesFinancing Homes and Commercial Activities
Marking-To-Market RuleMarking-To-Market Rule
The RF Banker is Trained to Think as An The RF Banker is Trained to Think as An Investor and Not As Person Who “Sells” Investor and Not As Person Who “Sells” Loan in Order to Rent Money.Loan in Order to Rent Money.
Each Financing Deal is Evaluated By the RF Each Financing Deal is Evaluated By the RF Banker Based on The Market Value of the Banker Based on The Market Value of the Utility of The Item FinancedUtility of The Item Financed
Published by John Wiley & Sons Intl.Published by John Wiley & Sons Intl. Published January 2010Published January 2010
Chapter 6Chapter 6
Civility & Social ResponsibilityCivility & Social Responsibility ECONOMY and ISLAMECONOMY and ISLAM
ECONOMY & ISLAMECONOMY & ISLAMElements of the RF (Riba Free) Elements of the RF (Riba Free) Economic System Economic System
1. 1. ProductionProduction
– Every individual must work and produce,Every individual must work and produce,
– Products to be useful and not harmful as Products to be useful and not harmful as defined in the Law (defined in the Law (Shari’aaShari’aa.) .)
ECONOMY & ISLAMECONOMY & ISLAMElements of the RF (Riba Free) Elements of the RF (Riba Free) Economic SystemEconomic System 2. 2. DistributionDistribution
– God/Allah owns wealth, power and natural resources.God/Allah owns wealth, power and natural resources.– The individual or the institution is appointed by God as a The individual or the institution is appointed by God as a
trustee and custodian to manage them.trustee and custodian to manage them.– Every being, human or not, has a minimum requirement to be Every being, human or not, has a minimum requirement to be
able to live in dignity. This should be provided by government able to live in dignity. This should be provided by government institutions to anyone who cannot meet his or her own needs. institutions to anyone who cannot meet his or her own needs.
– Private property and ownership are sacred rights and must be Private property and ownership are sacred rights and must be protected.protected.
– The system is paid back and balanced out through the act of The system is paid back and balanced out through the act of ritual Alms giving (ritual Alms giving (ZakahZakah) as one of the pillars of the ) as one of the pillars of the Judeo-Judeo-Christian-IslamicChristian-Islamic Law (Shari’aa) and System. Law (Shari’aa) and System.
. .
ECONOMY & ISLAMECONOMY & ISLAMElements of the RF (Riba Free) Elements of the RF (Riba Free) Economic SystemEconomic System
2. 2. Distribution (contd.)Distribution (contd.)– Government is responsible for the basic needs of Government is responsible for the basic needs of
every citizen. every citizen. These are food, shelter, clothing, These are food, shelter, clothing, education, health care & infrastructureeducation, health care & infrastructure..
– The Only Road to Richness is Hard Work and the The Only Road to Richness is Hard Work and the Assumption of Risk Assumption of Risk NOTNOT gambling, fraud and gambling, fraud and speculation. speculation.
– The Law (The Law (Shari’aa)Shari’aa) defines exactly how the estate defines exactly how the estate is distributed after death (in a detailed description is distributed after death (in a detailed description in the Qur'aan.) in the Qur'aan.)
The Qur’aan; Chapter 4, Nissaa – Women.The Qur’aan; Chapter 4, Nissaa – Women.
ECONOMY & ISLAMECONOMY & ISLAMElements of the RF (Riba Free) Elements of the RF (Riba Free) Economic SystemEconomic System
2. 2. Distribution (contd.)Distribution (contd.)
Miraath – InheritanceMiraath – Inheritance
–A Will cannot Alter the predefined distribution A Will cannot Alter the predefined distribution rates as revealed by God/Allah in the Qur’aan rates as revealed by God/Allah in the Qur’aan ((Chapter 4Chapter 4.) .) –This way money is distributed fairly and isThis way money is distributed fairly and is
trickled down Through the system.trickled down Through the system.
ECONOMY & ISLAMECONOMY & ISLAMElements of the RF (Riba Free) Elements of the RF (Riba Free) Economic SystemEconomic System
3. 3. Consumption:Consumption:– Citizen should be trained to seek a life of Citizen should be trained to seek a life of
moderation and a balanced pattern of moderation and a balanced pattern of consumption. consumption. Over-consumption is condemned Over-consumption is condemned as the work of Satan.as the work of Satan.
– System Prohibits: bribery, illegal profits, System Prohibits: bribery, illegal profits, abusing the legal system and/or reckless abusing the legal system and/or reckless spending and extravagant over-consumption.spending and extravagant over-consumption.
– Everyone is trained to plan for the future and Everyone is trained to plan for the future and to be careful. to be careful. The story of Prophet JosephThe story of Prophet Joseph
THE IDEAL SOCIETYTHE IDEAL SOCIETYThe New World Order of RF The New World Order of RF Banking” An order, which shapes Banking” An order, which shapes a new societya new society
Built on intellectual & mental persuasion. Our Built on intellectual & mental persuasion. Our mind is the key to knowing God/Allah and live by mind is the key to knowing God/Allah and live by the the IslamicIslamic values. values.
Believes in the purity of the soul and bodyBelieves in the purity of the soul and body.. Bans drugs, alcohol and gambling. Bans drugs, alcohol and gambling. Looks at promiscuous activities as filth that Looks at promiscuous activities as filth that
should never be condoned.should never be condoned. Believes in respecting and fulfilling promises.Believes in respecting and fulfilling promises. Believes in volunteering oneself and ones Believes in volunteering oneself and ones
resources to the cause of serving God/Allah.resources to the cause of serving God/Allah.
THE IDEAL SOCIETYTHE IDEAL SOCIETYThe New World Order of RF Banking” The New World Order of RF Banking” An order, which shapes a new societyAn order, which shapes a new society
Believes in respecting peoples’ properties, dignity Believes in respecting peoples’ properties, dignity and right to live honorably and freely.and right to live honorably and freely.
Never allows individuals to be overburdened with Never allows individuals to be overburdened with liabilities and debts that cannot be fulfilled. liabilities and debts that cannot be fulfilled.
Never hoards and never uses Riba in its financial Never hoards and never uses Riba in its financial dealings.dealings.
Believes that these goals can be achieved not Believes that these goals can be achieved not through the proletariat of communism and through the proletariat of communism and socialism or the selfishness and greed of money socialism or the selfishness and greed of money changers in untamed version of capitalism.changers in untamed version of capitalism.
Government, Business and Citizen’s Government, Business and Citizen’s Responsibilities in The Ideal SocietyResponsibilities in The Ideal Society
Protection of property rights and title of ownershipProtection of property rights and title of ownership Abolishment of discrimination and tribalism.Abolishment of discrimination and tribalism. Enforcement of equal rights and opportunities regardless Enforcement of equal rights and opportunities regardless
of tribal connections, race, national origin, gender, of tribal connections, race, national origin, gender, power, richness and/or poverty.power, richness and/or poverty.
WOMEN: WOMEN:
– Recognition of women as equal to men in a united Recognition of women as equal to men in a united community. community.
– System looking at women as important contributors System looking at women as important contributors to society and that they are entitled to inherit and own to society and that they are entitled to inherit and own property (for the first time in history).property (for the first time in history).
Government, Business and Citizen’s Government, Business and Citizen’s Responsibilities in The Ideal SocietyResponsibilities in The Ideal Society
Enforcing the free market system which was Enforcing the free market system which was later popularized in the West by Adam Smith.later popularized in the West by Adam Smith.
Origination of the concept of Origination of the concept of Takaful :Takaful : Mutual Benefit & Protection (today’s Mutual Benefit & Protection (today’s insurance.)insurance.)
Origination of labor rights stipulating Origination of labor rights stipulating fairness to labor (fairness to labor (pronounced by Prophet pronounced by Prophet Muhammad pp.)Muhammad pp.)
Strict enforcement of full transparency.Strict enforcement of full transparency.
Government, Business and Citizen’s Government, Business and Citizen’s Responsibilities in The Ideal SocietyResponsibilities in The Ideal Society
Prohibition of Gharar including hoarding Prohibition of Gharar including hoarding ((IhtikarIhtikar), deception, misrepresentation of facts ), deception, misrepresentation of facts about products and services, fraud, cheating, about products and services, fraud, cheating, deception and forgery.deception and forgery.
Enforcing Basic Belief that MONEY:Enforcing Basic Belief that MONEY:– Is not a commodity that can be “bought”, “sold’ Is not a commodity that can be “bought”, “sold’
and/or “rented” at a and/or “rented” at a priceprice called called interest rateinterest rate. .
– Only grows when invested in back to create Jobs, Only grows when invested in back to create Jobs, economic growth and prosperity.economic growth and prosperity.
Government, Business and Citizen’s Government, Business and Citizen’s Responsibilities in The Ideal SocietyResponsibilities in The Ideal Society
Establishment of the ISLAMIC ECONOMIC Establishment of the ISLAMIC ECONOMIC ((Judeo-Christian-IslamicJudeo-Christian-Islamic), Finance and Monetary ), Finance and Monetary System which is based on 4 important pillars System which is based on 4 important pillars
1. Wealth and property (assets) are owned by God's. 1. Wealth and property (assets) are owned by God's. Man (male/female) is appointed by God in His Man (male/female) is appointed by God in His mysterious and wise ways as its trustees and mysterious and wise ways as its trustees and custodians.custodians.
2. The system of RF Banking and finance.2. The system of RF Banking and finance.
3. The system of "3. The system of "ZakahZakah" or "alms" giving." or "alms" giving.
4. The system of "4. The system of "MiraathMiraath" or inheritance." or inheritance.
Government, Business and Citizen’s Government, Business and Citizen’s Responsibilities in The Ideal SocietyResponsibilities in The Ideal Society
Establishment of a standard for Behavior and Establishment of a standard for Behavior and Unique Life Style. It calls for:Unique Life Style. It calls for:– Followers to live below or within one’s Followers to live below or within one’s
means:means:– Followers not to waste, not to live in an Followers not to waste, not to live in an
extravagant life style and not to over extravagant life style and not to over spend. Overspending is defined by the spend. Overspending is defined by the Judeo-Christian-IslamicJudeo-Christian-Islamic value system as the value system as the work of Satanwork of Satan
RF Values RF Values The Spirit of RF BankingThe Spirit of RF Banking
SUCCESS:SUCCESS:– The progressive realization of a worthy idealThe progressive realization of a worthy ideal– Expressed in both material achievements and Expressed in both material achievements and
in being virtuous. in being virtuous. – Virtue implies a positive attitude towards life, Virtue implies a positive attitude towards life,
other citizens in the community and the world other citizens in the community and the world and all other beings. and all other beings.
– The results are peace of mind, contentment The results are peace of mind, contentment and a sense of security.and a sense of security.
RF Values RF Values The Spirit of RF BankingThe Spirit of RF Banking
Time Horizon – UNLIMITEDTime Horizon – UNLIMITED
– Extends beyond this life to the life after death; the Extends beyond this life to the life after death; the hereafter.hereafter.
– When one dies he/she will be remembered by what When one dies he/she will be remembered by what they leave behind; his/her perpetual source of they leave behind; his/her perpetual source of Benefit, his/her family and descendants who Benefit, his/her family and descendants who perpetuate goodness by following the laws of God, perpetuate goodness by following the laws of God, and/or a permanent contribution which will benefit and/or a permanent contribution which will benefit the community the community Hadeeth of Prophet Muhammad (pp.)Hadeeth of Prophet Muhammad (pp.)
RF Values RF Values The Spirit of RF BankingThe Spirit of RF Banking
Education and Productive Work:Education and Productive Work:– Respect and Value hard work and its tangible Respect and Value hard work and its tangible
contributions in terms of quality, creativity and service.contributions in terms of quality, creativity and service.
The RF Banker Stands on Two Pillars:The RF Banker Stands on Two Pillars:– The pillar of faith-based moral, ethical and The pillar of faith-based moral, ethical and
spiritual fulfillment, andspiritual fulfillment, and– The pillar of excellence in the quality of products The pillar of excellence in the quality of products
and services offered compared to its peer and services offered compared to its peer conventional riba-based banksconventional riba-based banks
RF Values RF Values The Spirit of RF BankingThe Spirit of RF BankingGoals of BusinessGoals of Business
1. Maximization of profits and services in a legal and fair 1. Maximization of profits and services in a legal and fair way to realize a better life and living standards with way to realize a better life and living standards with freedom and independence of the individual without any freedom and independence of the individual without any discrimination.discrimination.
2. Adherence to free markets and free international trade 2. Adherence to free markets and free international trade as the natural mechanism of getting people to know each as the natural mechanism of getting people to know each other in order to promote mutual respect, peace and other in order to promote mutual respect, peace and prosperity through communications, trading and prosperity through communications, trading and mutual benefits. mutual benefits.
The Covenants of RF BankingThe Covenants of RF BankingThe 10 Golden Promises of RF Bankers The 10 Golden Promises of RF Bankers
1. Do Not Speculate With People's Money &Trust.1. Do Not Speculate With People's Money &Trust.
2. Fulfill Our Promises2. Fulfill Our Promises
3. Respect Money - Money "Respects" People Who 3. Respect Money - Money "Respects" People Who Respect ItRespect It
4. Do Not Forget Our Moral Responsibility To Local 4. Do Not Forget Our Moral Responsibility To Local Communities.Communities.
5. Do Not Discriminate.5. Do Not Discriminate.
The Covenants of RF BankingThe Covenants of RF BankingThe 10 Golden Promises of RF Bankers The 10 Golden Promises of RF Bankers
6. Invest In Our Clients. We DO NOT Rent Money!6. Invest In Our Clients. We DO NOT Rent Money!
7. Be7. Be Socially Responsible.Socially Responsible.
8. Be Sensitive about Who We Deal With8. Be Sensitive about Who We Deal With
9. Be Conservative.9. Be Conservative.
10. Look At Our Co-Workers As Our Partners.10. Look At Our Co-Workers As Our Partners.
Published by John Wiley & Sons Intl.Published by John Wiley & Sons Intl. Published January 2010Published January 2010
Other Chapters:Other Chapters:
7– Conventional Riba/Ribit-Based Banking7– Conventional Riba/Ribit-Based Banking 8- The Difference?8- The Difference? 9- Islamic Banking in 209- Islamic Banking in 20thth Century Century 10- RF Banking in 2110- RF Banking in 21stst Century Century 111 & 12- Starting and Operating an RF Bank in US1 & 12- Starting and Operating an RF Bank in US 13- Case Studies: Financing a Car, a Home, Trusts 13- Case Studies: Financing a Car, a Home, Trusts
((WaqfWaqf) and Investing in Stocks) and Investing in Stocks 14- Vision of the Future14- Vision of the Future
Back To The Future! Back To The Future! The RF BANKING BrandThe RF BANKING Brand The Universal Judeo-Christian-Islamic based Banking The Universal Judeo-Christian-Islamic based Banking
The The RFRF Banking Brand (and Discipline) Banking Brand (and Discipline): : Simple,Simple, Based on the Based on the Judeo-Christian-Islamic Judeo-Christian-Islamic
LawsLaws ( (Shari’aaShari’aa) for a Riba/Ribit-Free ) for a Riba/Ribit-Free Life-style, Life-style,
It is Prudent Because it Applies the It is Prudent Because it Applies the Rules of Rules of Commodity IndexationCommodity Indexation and and Marking-to-MarketMarking-to-Market
DESIGNED TO SERVE ALL PEOPLE DESIGNED TO SERVE ALL PEOPLE OF ALL FAITHS.OF ALL FAITHS.
Published by John Wiley & Sons Intl.Published by John Wiley & Sons Intl. Published January 2010Published January 2010
RF Banking the LARIBA WayRF Banking the LARIBA Way
The Unique Niche The Unique Niche LARIBA - LARIBA - WE DO NOT RENT MONEY; WE DO NOT RENT MONEY; WE INVEST IN YOUWE INVEST IN YOU www.LARIBA.com
WE ANSWER TO A HIGHER AUTHORITY!WE ANSWER TO A HIGHER AUTHORITY!
THE OUTCOMETHE OUTCOME Superior Service,Superior Service, Solid Loan Portfolio – “Mark-To-Market”Solid Loan Portfolio – “Mark-To-Market” Solid Products, Solid Products, Lower Risk,Lower Risk, Higher Returns Because Of Lower Default Rates,Higher Returns Because Of Lower Default Rates, Lower Overhead Expenses,Lower Overhead Expenses, More Customers To ServeMore Customers To Serve, And , And Much More Investors To Keep ComingMuch More Investors To Keep Coming
WE INVITE YOU TO LIVE WITHOUT WE INVITE YOU TO LIVE WITHOUT RIBA!!RIBA!!Dr. Yahia Abdul-RahmanDr. Yahia Abdul-Rahman
YARAHMAN@MSN.com
626 - 818 - 0855626 - 818 - 0855 OrOr 626 – 449 – 4401 X- O626 – 449 – 4401 X- O
THANK YOU -THANK YOU - QUESTIONS QUESTIONS PLEASE!PLEASE!www.LARIBA.com
www.WhittierBank.com
LARIBA – RF BankingLARIBA – RF BankingWE DO NOT RENT MONEY ; WE INVEST IN WE DO NOT RENT MONEY ; WE INVEST IN YOUYOU We Answer To A Higher AuthorityWe Answer To A Higher Authority
Prices!Prices!Paper (Paper (fiatfiat) Money and Gold) Money and Gold
President Nixon – 8/1971 President Nixon – 8/1971
Closes The Gold Window – Gold $35/OzCloses The Gold Window – Gold $35/Oz
Gold $/Oz: Gold $/Oz: 1971 = $351971 = $35 2011=$19002011=$1900
54X54X Oil Price Per barrel: Oil Price Per barrel: 1971 = $2.20 1971 = $2.20 2011=$1202011=$120
54X54X
Prices!Prices!Paper (Paper (fiatfiat) Money and Gold) Money and Gold
President Nixon – 8/1971 President Nixon – 8/1971
Closes The Gold Window – Gold $35/OzCloses The Gold Window – Gold $35/Oz
Gold $/Oz: Gold $/Oz: 1971 = $351971 = $35 2011=$12002011=$1200
34X34X Oil Price Per barrel: Oil Price Per barrel: 1971 = $2.20 1971 = $2.20 2011=$752011=$75
34X34X
Early Warning For Price Bubbles Early Warning For Price Bubbles COMMODITY INDEXATION RF RULECOMMODITY INDEXATION RF RULEPrice of Home in Terms of RicePrice of Home in Terms of Rice
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