Chinese banks is porbably one of the healthiest bank in the world this time around...but are they superior to western banks? I do not understand much about Islamic banking but i do know the reason behind chinese banks this time around is the lack of complex financial products and its large reserves which is controled by the govt. So far its good idea to insulate against financial storm but are they efficient at promoting growth during normal times? I do not agree with the overly complex financial products that western bank sells but i also think that complex financial products can be useful to investors and the industry as a whole. I also agree that the executives at wallstreet are greedy and overpaid, but i do not think that Islamic banking can solve greed and corruptions. We just need a better regulatory systems. My point is not which bank are superiors compared to others, rather that different banks have different strength. Western banks are strong with innovation but relatively weak when crisis hit due to their low savings and risky assets, while chinese banks are strong against crisis, but is inefficient in promoting growth to SME. I am sure Islamic banks have their own strength and weakness, but i cannot comment to much on them.
It is very dangerous to promote a banking system that adheres to just one religious believe. It is not fair for people who believe in other religion. No religion in the world has actually successfuly contain man's greed. Religion has been the cause of war and has many times dissapoint humanity. I agree that business has social responsibilities but definitely not religious responsibilities. By the way, we also cannot blame western companies on ethics. All companies and govt are guilty at some point in this regard. Is selling Oil to western countries ethical? knowing what oil can do to earth, why does islamic countries still sell them to other countries? No one govt, companies or religions have absolute moral authority in our world because at one point they are guilty or prove unable to control human greed.
You are basing your arguments on religious superiority and not basic economics.
We should analyse the satuation considering all aspects and religion is major aspect can not be over looked.
I would like to clarify that in islam socio-economic system every aspect of life move within domain of islamic fundamentals and ethics.
Humans has limited control on world economy,we always need help of mother nature for our protection ,wealth, prosperity and economic growth.
So we can not totally or partially discard the basic laws and regulation made by God.God made these fundmental law and ethics for human betterment and servival and any one can get benefit of these fundamentals without any discremination .
Frequent failure of western financial system itself proof of flaw in its basic fundmentals and ethics.
Democratic system is basically drived from islamic shaura system ,where shoura council is actually controlling the state and head of state has limited powers ,why not we apply this system in banking and financial sector by formation of international economic council to control the world major financial entities instead of giving private banks and investment companies to play with the public money and misuse money in their own intrests.In this regards role of world bank and IMF can be increased.
