If only they had followed Islamic principles ...

The calls for moral and values in financial markets by top world leaders are proof that Islamic finance could assume a role in the global financial system.

These demand were made by Britain's Gordon Brown and Autralia's Kevin Rudd, at the recent meeting of the world's top 20 countries in London.

"Islamic finance is all about moral spiritual values. It is all about equity in commercial transaction. The whole basis of Islam itself is one should not be concerned solely in one's own but also seek the advancement of ummah (Muslim community)," academician Mervyn K. Lewis said in an interview in Kuala Lumpur recently.

Islamic finance is not just about being interest-free but it prohibits gharar or uncertainty, gambling and only allows halal investment activities.

"Very importantly is the religious supervision provided by the syariah board of the respective financial institutions," he said.

If the West does not want to adopt Islamic banking directly, it could "copy and replicate the Islamic principles," he said.

Lewis is in Malaysia under the Securities Commission and University Malaya Islamic Finance collaboration. He is first visiting scholar to be attached to UM for a month.

The SC will also host a public lecture by Lewis this Thursday entitled "An Islamic Economic Perspective on the Global Financial Crisis."

"I will look at the western financial institutions and ask, had they followed the Islamic principles where activities are governed by a board of religious scholars, how would things be different."

In the West, there are ethical investment funds which are based on certain aspects of a religion. There are also funds guided by the environment and sustainability principles.

"There is no ethical banking. There are not too many banks that do not invest in alcohol or gaming activities. There is no ethical insurance companies... etcetera," he said.

The potential for Islamic finance is tremendous but Lewis conceded this will take time as the area is still a mystery to most people in the West.

Even in Malaysia, which has the best regulated Islamic finance sector in the world, Islamic loans make up only 15 per cent of the total market.

"The target of 20 per cent by 2010, I believe is going to be undershot," he said, referring to the target set by the government.

But Kuala Lumpur has the chance to lead the industry due to the huge Muslim population in the region. Indonesia has 180 million Muslims, China has around 100 million, while Thailand has 7 million.

Lewis does not specifically teach Islamic finance at his university. His interest came about back in 1994 when he had to mentor a post-graduate student from the Middle East working on Islamic finance at the University of Nottingham.

In 2001, the paper was turned into a book that touched on governance in Islamic finance.NST,13April2009

Perbankan Islam masih goyah

SERDANG 12 April - Sistem perbankan Islam global memerlukan sekurang-kurangnya 50 tahun lagi untuk menjadi sebuah sistem kewangan yang setanding dan stabil seperti sistem kewangan konvensional sedia ada.

Ahli ekonomi dan juga Profesor Pelawat dari Universiti New Orleans Amerika Syarikat (AS), Prof. M. Kabir Hassan berkata, sistem kewangan Islam yang wujud ketika ini masih lagi goyah malah mendakwa ia turut mencedok idea sistem konvensional.

Beliau mengakui tempoh 50 tahun itu merupakan satu tempoh yang lama tetapi ia merupakan satu jangka waktu yang diperlukan untuk membaiki dan membetulkan sistem kawal selia sistem kewangan itu.

"Kita tidak boleh meniru kawal selia sistem kewangan konvensional dengan sewenang-wenangnya untuk membantu sistem kewangan Islam. Kita sebaliknya memerlukan kawal selia tersendiri bagi perbankan Islam," katanya.

Beliau berkata demikian selepas menyampaikan ceramah umum bertajuk 'Sistem Kewangan Islam Boleh Menjadi Jalan Penyelesaian Kepada Krisis Kewangan Dunia' di Universiti Putra Malaysia di sini baru-baru ini.

Menurut M. Kabir, sudah tiba masanya bagi sarjana atau pakar perbankan Islam membetulkan sebarang masalah yang terdapat di dalam sistem itu.

"Hasil kajian dan pemerhatian saya mendapati ada sistem kewangan Islam yang diguna pakai tidak sesuai digunakan di negara-negara tertentu," katanya.

Tambahnya, negara Islam yang mempunyai kepakaran dalam bidang perbankan Islam harus mempunyai model pelaksanaan yang baik sebelum mempromosikan penggunaannya di kalangan dunia Barat.

Beliau memberitahu, untuk jangka masa pendek sistem kewangan Islam memerlukan sistem perbankan tiga peringkat bagi mengukuhkan lagi industri itu.

Menurutnya, tiga peringkat yang dicadangkan itu ialah mengguna pakai sistem seperti bank konvensional yang mana orang ramai boleh menyimpan wang di bank dan bank terbabit pula menggunakan deposit tersebut bagi menampung keperluan mereka.

Katanya, perbankan Islam juga boleh mengguna pakai institusi seperti Mudarabah yang mana orang ramai menyimpan wang mereka dan wang yang dikumpulkan itu digunakan bagi tujuan membangunkan pelbagai perkara.

''Selain itu, pengwujudan sistem seperti modal teroka atau Musyarakah, yang membabitkan pembiayaan projek infrastruktur perlu dipertimbangkan,'' jelasnya.

Pakar ekonomi itu juga berkata, kawal selia perlu diwujudkan oleh kerajaan dan institusi kewangan kerana sistem yang digunakan bagi perbankan konvensional sedia ada tidak sesuai bagi keperluan perbankan Islam.

"Kita memerlukan sistem kita sendiri tanpa perlu bergantung kepada perbankan konvensional untuk membantu sistem kewangan Islam," katanya.

Ujarnya, langkah seumpama itu perlu dibuat kerana Barat juga sukar menerima perubahan terhadap sistem kewangan konvensional yang diguna pakai beratus-ratus tahun lamanya, meskipun terbukti sistem sedia ada menjadi punca kepada krisis kewangan global.utusanmalaysia,april 2009