conventional banks, shutdown islamic branches

I was struggling as well, but here is what I've understoond so far regarding loans specifically; let's assume that you would like to purchase a vehicle for 100k QR, an Islamic bank will purchase it under their name and sell it back to you for 140k QR on installments plan.Please note the 140 is a fixed amount, that amount doesn't change regardless of the central bank interest rates manipulation,inflation..etc

I never understood the concept of Islamic Banking :S

s_isale... Incorrect... there was no consultation, and no warning.

why typical - all the banks were informed earlier itself and had already taken steps in relation to that.

Its typical of QCB to issue directives without taking into account impact of the decision and without consultation and proper discussion with the relevant participants.

It is a "DO" then "THINK" and then "CLEAN UP" regulaltor.

We have seen examples earlier, just like the post paid cheque directive, which they had to retract because it wasnt doable.

It is a good decision on the part of QCB. Because the Conventional bank were riding on two boats enjoying the facilities of both the banking with a very wrong logic of business doing the conventional banking and the Islamic Banking side by side. And the specilaized Islamic Bank were not having much opportunity for growth. Now their will be more branches set up by the Speciliazed Islamic Bank and people serving with the Islamic Banking under Conventional Bank will be absorbed by the Specilized Islamic Bank.

Here's my take on the situation:

It's only Islamic branches of regular banks. I'm guessing it is because funds from the Islamic branches could be used for non-islamic investment. My guess is that these banks will be sold off as a separate banking institution and will keep the same staff in the same branches in the same positions.

I don’t want to go into details.

But it’s about time that some customer protection measure was taken

Thankyou for saying what I was thinking. I recall talking to a senior guy from SAMA a couple of years ago and he said the same.

QCB as a regulator body, should have taken this step years ago.

There is nothing called “Islamic branch” of a Usury-based bank!

They’re either Islamic or they’re not. Sharia law is very clear about the prohibition of Riba.

Banks see no ‘big hit’ from Islamic curbs, but may seek clarification

OMG... who do they think they are kidding ;)

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=414679&version=1&template_id=48&parent_id=28

it looks like some of them were really fudging their accounts if reports in todays papers are to be believed

Dont be silly, they will take those locals and put them somewhere else or pay them to sit at home...this is Qatar..expect Amazing!

Here is the thing. Most locals will not work for a conventional bank for religious reasons, thus they cannot be absorbed by conventional banking in their own banks. There is going to be a lot of out of work locals within a year.

Maybe some of these banks were duping the masses???

most staff in islamic banks i believe are made up of locals or are of arabic ethnicity. what to do with them now?

they will replace expats like u with higher pay for doing nothing.where u gonna copmlain, who will hear u????????????????????????????? wake up.

dont wish this on my worst enemy.

go where i have been and u would never forgive ur own shadow..

hey wake up and taste the coffee.

that is just so mean 2masti. i wouldn't wish this on my worst enemy.

everyone was totally surprised by the decision and most banks i think are still at a loss on what to do with their islamic banking units. it's not the decision itself, but the suddenness in which the qcb made its decision. there wasn't even room for consultation or at least preliminary measures for the banks to take before gradually shutting down their islamic branches. or something to at least prevent panic.

many news articles on this mentioned that hsbc even launched its islamic banking unit only recently in the presence of the qcb governor. what are they gonna do with that now? most staff in islamic banks i believe are made up of locals or are of arabic ethnicity. what to do with them now?

haha.... that means an enemy of mine is jobless sooon..he was like the whole world was under his feet. severs him right. what goes around comes around. hahahahahahahahh.............

What about QNB-Islami..??

"A circular issued by Qatar’s central bank earlier this month stated that the decision to cease Islamic financing services operating within conventional banks went into immediate effect. The lenders were given a grace period that stretches to December 31, 2011, at which point the Islamic banking activities will need to shut down."

http://news.gulfjobsmarket.com/qatar%E2%80%99s-islamic-banking-ban-sends-jitters-to-other-gcc-bankers-7862242-news

The word is... that this will be either abandoned or it's a frightener to soften the blow of an alternative that will be put next. But all is just speculation. It's going to be of concern to the rest of the world though, when they see how quickly major financial decisions like this can be made. If they can do things like this at the drop of a hat with no warning, who knows what they will do next. This could even affect the counties credit rating.