The National Australia Bank (NAB) is considering introducing Shari’a loans into Australia, the funds for which will be supplied by its ‘non-profit financial arm’. This seems to have occurred shortly after comments by Federal Assistant Treasurer Chris Bowen, who claims that introducing Shari’a law into Australia will create more jobs.

The whole idea of Shari’a banking was a concept developed by Muslim fundamentalists as a way of introducing Shari’a law into non-muslim countries. After all, who would complain about ‘interest free’ banking? Actually it’s not interest free, as the interest is simply pre-calculated into the cost of the final loan and, since it claims to be interest free, the recipient has no way of knowing how much ‘profit’ they are actually paying.

For example, to get round the Islamic ban on usury – or unfair lending – a Muslim mortgage often works by the bank buying the property, then selling it to the customer at a profit, with the customer then repaying the entire sum in installments.
In this way the profit margin is built in from the start. It also has the advantage of making the loan immune from future interest rate rises [SMH]

It is not clear why the NAB is funding this project from their ‘non profit’ arm when in fact profit is built into the product. The basic description above though is how loans in Australia used to be created until the changes in the Credit Act meant that the banks could draw up a contact without surety, meaning they could implement variable rate loans instead of it being fixed at the time of the contract over the life of the loan. You can read more about these changes in John Wilson’s online book: “BANKS AND JUDGES” -

The sleepy people of Australia were not not aware of what was in store when our politicians passed a Bill called the Consumer Credit Act to replace the Moneylenders and Infants Loans Act of 1941. The Moneylenders Act clearly stated that a loan contract shall show the total amount of interest payable which meant that the lender knew exactly what the loan would cost, i.e.: there was certainty of terms in accordance with common law and the fundamental principles of economics governing the setting of interest to be charged on a loan. This and a few other qualities of the Moneylenders Act are explained in a leaflet I produced to support a motion I put before a Liberal Party State Convention in 1994 which is reprinted here.

Do not be fooled, by engaging in this type of product, you are supporting the imposition of Shari’a law. Boycott the National Australia Bank! You can read a more detailed summary of the NAB and Shari’a banking here: An examination of the discriminatory practices of the National Australia Bank

Instead of adopting Islamic laws, our banks can be required to offer fixed-payment options for customers, as used to be common practice in Australia, thus giving the public more options for home buying. However, at the same time, it should be realised that fixed-payment loans usually end up being more expensive than variable-payment loans, as banks want to maintain their profit levels. Involving Islam in our banking system is not necessary.

Bringing Sharia banking into Australia is not a question of Islamic ethics, but is more about pushing propaganda for Islam than it is about ethical banking. Sharia banking is a “thin edge of the wedge” issue, whereby Muslim fundamentalists attempt to bring Sharia law into our society, one element at a time, as part of the “cultural struggle” of Islam against Western nations.

The introduction of elements of Sharia Law is part of a long-term push for enabling Muslim fundamentalists to gain a bigger foothold in Australia, and so Australians should loudly protest against any such attempts to bring Islamic laws into our country.
http://www.protectionist.net/2009/06...islamic-loans/