1. Participatory Financing through Investment Banks and Commercial Banks
2. Interest-free Commercial Banking

This is the second of a series of three books which taken together, are expected to provide a comprehensive banking system that addresses the concerns and needs of Muslims today. The other two titles are, Interest-free Commercial Banking and Commercial Banking in the Presence of Inflation

In that system, time and savings will be guaranteed. This is fine if the depositor's main aim is to keep his savings safe. But what if his primary aim is to use this capital to earn an income? Islam prohibits interest earnings. He could engage himself in some trade which Islam permits - on his own or in partnership with others, even as a sleeping partner - but it may not be possible for many for personal reasons or for reasons of the modern day environments. Exploring the possibilities of accommodating such capital holders through a bank is the subject of this book.

Studying the type and size of such capital and their owners' geographical distribution, and the type, size and distribution characteristics of investment opportunities, this book presents a single scheme with several options for bringing capital and enterpreneurer together through banks in a mutually benefitial and responsbile manner. The scheme can be offered through investment companies as well.

Written lucidly in simple English, it is suitable for reading by professional and academics as well as by the general public.

ISBN 90-802354-2-3, xii+194 pages, 1996, USD 9.95

Studies the problems of eliminating interest from the banking system from basic principles. Using a general model of the commercial banking lending process, shows that interest can be eleminated from modern commercial banking system that is free of interest but is fully viable and compatible with current practices in the conventional system

This system is practicle in strictly Islamic countries, nominally Islamic countries, as well as in other countries. The only requirement is that there is a clientele that wishes to avoid dealing in interest. Implementation of the system requires no changes in either the laws of the country or in that of commercial banking.

A full chapter is devoted to the study of Islamic banking: Its history, current practices and the problems it faces. Suggestions for overcoming these problems are also given. The resulting system is essentially the same as the one previously arrived at by removing interest from the conventional system.

The proposed system, however, rests on a firm theoretical foundation, and provides management information that is very useful for monitoring and control.

Written lucidly in simple English, it is suitable for reading by professional and academics as well as by the general public.

ISBN 90-802354-1-5, xii+86 pages, 1995, USD 9.95

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Contact addresses (for both books):

Apptec Publications
Berkenlaan 75,9741 JL Groningen
The Netherlands
Tel/Fax: +(31-50) 5775136

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Hari Srinivas - hsrinivas@gdrc.org
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