Messages have been making rounds about Jaiz Bank
being threatened and requesting people to open an account at Stanbic.
The message is not only ridiculous but also untrue.
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| Jaiz bank |
Jaiz bank operates Islamic banking. Islamic Banking is basically a banking system that
is based on the principles of profit and loss sharing, and, significantly, the prohibition of the collection and payment of interest. In that sense, it is a true partnership between the bank and its clients where risks shared according to mutually agreed ratios. For example, instead of providing a facility to finance import, an Islamic Bank will simply buy the product and sell to the importer at a mark-up. It can also go into partnership with a Real Estate developer, build houses, Industrial Estates, etc, and share in the profit according to an agreed proportion.
is based on the principles of profit and loss sharing, and, significantly, the prohibition of the collection and payment of interest. In that sense, it is a true partnership between the bank and its clients where risks shared according to mutually agreed ratios. For example, instead of providing a facility to finance import, an Islamic Bank will simply buy the product and sell to the importer at a mark-up. It can also go into partnership with a Real Estate developer, build houses, Industrial Estates, etc, and share in the profit according to an agreed proportion.
It is a profit based system instead of the Interest based system practiced by other banks. Under
the interest-based system deposits are taken as loan from customers to
the bank & a fixed return is guaranteed to depositors regardless of
the performance of the institution. Islamic bank receives deposits to
invest them on behalf of depositors & shareholders and the profit is
shared between depositors & shareholders. Conventional banks give loans at a fixed rate without any risk on
their part while under Islamic banking system, the bank shares the
profits & losses from investment and bears the risk of investment.
One of the
team at MPAC contacted the Management of Jaiz and they had this to say:
Wa alaykumus salaam Amina, we had that message & similar in the past via sms. Pls let me clarify:
1. Jaiz Bank Plc & Stanbic IBTC are two distinct institutions (NIFI)
tho both offer Islamic Banking (IB) products.
2. Jaiz is a full fledged NIFI whil StanbicIBTC is a conventional bank that operates IB Window.
3. One can only open Jaiz a/c at Jaiz Bank - am not aware of any
arrangement where u open Jaiz A/c in Stanbic IBTC or any other bank.
4. Jaiz Bank has never had its license threatened from inception 2
date."
kindly broadcast this message to clear the air
Adogie Abdulrahman
........................................................
Sent in by Adebowale Adewunmi Ali. Edited by me
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