Islamic Banking Struggles to Find Market; Interest-Free Bonds Taking Root among Muslims beyond Istanbul

The Washington Times (Washington, DC), July 10, 2006 | Go to article overview

Islamic Banking Struggles to Find Market; Interest-Free Bonds Taking Root among Muslims beyond Istanbul


Byline: Nicholas Birch, THE WASHINGTON TIMES

ISTANBUL - Turkey is missing out on an opportunity to profit from Arab oil wealth as tensions between its secular government and religious authorities prevent it from issuing interest-free Islamic bonds that have become popular throughout the Muslim world.

Government ministers had promised to push legislation through parliament during this legislative year. But with lawmakers now on vacation until September, the future of the measure is not clear.

Islamic bonds would have offered investors a cut of the cash flow of projects financed by the bonds, thereby avoiding the interest payments on conventional bonds that are in breach of Islamic practice.

Banking analyst Saduman Okumus blamed the delay on the nature of Islamic finance in this staunchly secular Muslim country. "Those who say money has no color don't know Turkey," she said.

For a country that set its heart on Western modernity 150 years ago, trade here is heavily weighted westward, with about 70 percent of exports going to European Union countries.

Just as Turkey's founders saw the Middle East as a morass of religious ignorance, so some Turks today tend to see investment from their Muslim neighbors as a potential Islamic threat to their secular system.

This issue of so-called "green capital" surfaced again last week with secular opposition politicians renewing calls for the firing of a businessman and close aide of the Turkish prime minister.

In the 1990s, Cuneyt Zapsu was in partnership with a Saudi millionaire who Washington now thinks had financial links to al Qaeda.

Opponents of the government also have called on the state banking watchdog to seize accounts of the Turkish interest-free bank Zapsu, which reportedly have been used to transfer money.

It is hardly an atmosphere conducive to Islamic banking, which remains marginal in Turkey two decades after its introduction. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Islamic Banking Struggles to Find Market; Interest-Free Bonds Taking Root among Muslims beyond Istanbul
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.