Islamic Banking options in the U.S.

[Community Development Banking List]

Original message from: jonraine77@gmail.com

Hello:

I'm a student interested in conducting research around different immigrant
communities' financial options. I'm interested to know if any small CDFIs
are focused on Islamic banking as a market or currently offer any Shariah
compliant financial products?

I'd be extremely grateful if somebody could recommend any resources, case
studies, samples policies or product offerings.

Thanks!

Jon

[Community Development Banking List]

Original message from: lowe@buckleyking.com

Devin Bank in Chicago, although not a CDFI, offers such loans. Contact David Loundy.
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-----Original Message-----
From: bounce-7605481-13638737@list.cornell.edu <bounce-7605481-13638737@list.cornell.edu>
To: communitydevelopmentbanking-l@cornell.edu <communitydevelopmentbanking-l@cornell.edu>
Sent: Thu Dec 23 18:48:38 2010
Subject: Islamic Banking options in the U.S.

Hello:

I'm a student interested in conducting research around different immigrant communities' financial options. I'm interested to know if any small CDFIs are focused on Islamic banking as a market or currently offer any Shariah compliant financial products?

I'd be extremely grateful if somebody could recommend any resources, case studies, samples policies or product offerings.

Thanks!

Jon

CDB list instructions http://www.runonthebank.net/cdblist.htm

[Community Development Banking List]

Original message from: rpt2@uchicago.edu

[Community Development Banking List]

Original message from: dev.tfetherolf@vintonco.com

You might contact ECDI in Columbus, Ohio. They have been serving the
immigrant community there for many years.



http://www.ecdi.org/









Terri Fetherolf, Microenterprise Organization of Ohio

[Community Development Banking List]

Original message from: christybat@gmail.com

(Response below from my friend and co-worker, Ahmed Baianonie. He refers to
his Dad who is an Imam in Raleigh, NC.)



Jon,


Sure, below are some good links. To my knowledge Devon Bank out of Chicago
is one of the few banks in US who offers complete Shariah Compliant home
financing options and valid in many states. They have done extremely well
over the years so you have many companies claim that they have Shariah
compliant options. I would say 90% of companies who say their products are
Shariah compliant are not. My father and group of experts reviewed their
contracts and terms.



http://www.devonbank.com/

http://www.devonbank.com/pf_faithbasedfinancing.html

http://www.devonbank.com/islamic/index.html

http://www.devonbank.com/islamic/home_buyingahome.html. This link gives a
good overview of the various ways you can purchase a new home from Islamic
perspective (Murabaha, Ijara or Musharaka).



The main difference is that in Islam you cannot deal with interest in
anyway. It is considered one of the major sins. But Islam is ok with the
concept of making a profit. So the bank has to buy 100% of the home and
turn around and sell it to you at a profit. This way the bank is making a
profit on a product which is the home. The other concept in Islam is that
the parties cannot change any of the terms of the contract once it has been
agreed upon.



What's interesting is that when I bought my home with Devon, I had couple of
agents and attorneys review it to make sure it was legal in NC. It turned
out that dealing with Devon, I saved a lot of money compared to the
traditional loan. This was because in Islam you cannot charge all the fees
that banks charge the buyers (origination fees & other bank loan fees).



Thanks,
*Ahmed Baianonie*
IT Manager

Small Business & Technology Development Center (SBTDC)
Your business. Better.**
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
5 W. Hargett St., Suite 600 *| *Raleigh, NC 27601 *| *phone:
919-715-7272 *|*
www.sbtdc.org<https://webmail.sbtdc.org/exchweb/bin/redir.asp?URL=http://www.sbtdc.org/>
**
*The SBTDC is administered statewide by NC State University on behalf of The
University of North Carolina System and is operated in partnership with the
US Small Business Administration.. E-mail correspondence to and from this
address may be subject to the North Carolina Public Records Law and may be
disclosed to third parties.*

------------------------------

[Community Development Banking List]

Original message from: edacmark@aol.com


Jon- The Neighborhood Development Center in Minneapolis has won several national awards for its Reba-free financing approaches. www.ndc-mn.org

They were advised by Wafiq Fannoun a top specialist in designing such initiatives and Executive Director at the Islamic University of Minnesota. www.iumn.net. He can be reached at wfannoun@iumn.net.

Best of luck with your research- Mark



Marcus S. Weiss
President
Economic Development Assistance Consortium (EDAC)
21 Merchants Row
Boston, MA 02109

P: 617.742.4481
F: 617.367.0908




-----Original Message-----
From: Jon Raine <jonraine77@gmail.com>
To: communitydevelopmentbanking-l@cornell.edu
Sent: Thu, Dec 23, 2010 6:48 pm
Subject: Islamic Banking options in the U.S.


Hello:


I'm a student interested in conducting research around different immigrant communities' financial options. I'm interested to know if any small CDFIs are focused on Islamic banking as a market or currently offer any Shariah compliant financial products?


I'd be extremely grateful if somebody could recommend any resources, case studies, samples policies or product offerings.


Thanks!


Jon
CDB list instructions http://www.runonthebank.net/cdblist.htm