Milton Friedman (MOST PROMINENT MONETARY ECONOMIST) saw little difficulty in converting to Full Reserve Banking System, As he put it: “There is no technical problem in achieving a transition from our present system to 100% reserves easily, fairly speedily and without any serious repercussions on financial or economic markets.” His explanation for the failure to implement FR cited vested interests : “The vested political interests opposing it are too strong, and the citizens who would benefit both as taxpayers and as participants in economic activity are too unaware of its benefits and too disorganized to have any influence.”
We should have clarity regarding the difference between conventional and Islamic banking. Conventional banking is Assets (loans) back securities that are tangible and intangible as well. Whereas, Islamic banking is purely back by tangible assets only.
Salaam Qanit Sb, JazakAllah Khair for explaining it with fine details. No doubt it was very interesting and eye opening content. I have few questions though. I will be grateful if you can shed some light on following: 1. By implementing this system, small banks may go out of business as they may not have enough pledge bonds to return to the government. How can we cater this problem even if it is implemented in steps over few years? 2. Most probably you would have covered the whole overall economy of the country (if we implement this system). It would be nice if you cover all aspects like external loans, trade deficit etc in your next podcast 3. What will be its impact on external loans (IMF, CPEC etc)? How can we get rid of them? Will this system have any positive or negative impact on them? 4. If this system is implemented, are we not putting all eggs in one State Bank's basket as they can do the same which private banks are currently doing? 5. Is there any country which has implemented this system yet? You mentioned Switzerland but eventually they didn't implement it either. Why have other countries not adopted it yet? 6. What could be the potential drawbacks of this system? JazakAllah khair
Till 21 minutes there is no solution to the issue; don't have 63 more minutes to come to same conclusion. The video should have been small and precise.
Video discussed economic topic of immense importance covering multifaceted issues. You may like to view the video selectively for the solution by clicking on the timeline given in the description. Looking forward for your comments on the proposed solution. It will be a time worth spending.
Milton Friedman (MOST PROMINENT MONETARY ECONOMIST) saw little difficulty in converting to Full Reserve Banking System, As he put it:
“There is no technical problem in achieving a transition from our present system to 100% reserves easily, fairly speedily and without any serious repercussions on financial or economic markets.”
His explanation for the failure to implement FR cited vested interests :
“The vested political interests opposing it are too strong, and the citizens who would benefit both as taxpayers and as participants in economic activity are too unaware of its benefits and too disorganized to have any influence.”
This should be viral.
We should have clarity regarding the difference between conventional and Islamic banking. Conventional banking is Assets (loans) back securities that are tangible and intangible as well. Whereas, Islamic banking is purely back by tangible assets only.
Good❤
Informative podcast.
Thanks for watching!
Not possible pure fantasy miftah Ismail is totally correct
I am agreed with Qanit. 15 years before someone has trying to kill me when i argued the islamic banking of Meezan bank.
Salaam Qanit Sb, JazakAllah Khair for explaining it with fine details. No doubt it was very interesting and eye opening content. I have few questions though. I will be grateful if you can shed some light on following:
1. By implementing this system, small banks may go out of business as they may not have enough pledge bonds to return to the government. How can we cater this problem even if it is implemented in steps over few years?
2. Most probably you would have covered the whole overall economy of the country (if we implement this system). It would be nice if you cover all aspects like external loans, trade deficit etc in your next podcast
3. What will be its impact on external loans (IMF, CPEC etc)? How can we get rid of them? Will this system have any positive or negative impact on them?
4. If this system is implemented, are we not putting all eggs in one State Bank's basket as they can do the same which private banks are currently doing?
5. Is there any country which has implemented this system yet? You mentioned Switzerland but eventually they didn't implement it either. Why have other countries not adopted it yet?
6. What could be the potential drawbacks of this system?
JazakAllah khair
We also must deal with Islamic countries loans as per Islamic banking rules
It is impossible to grow with in making budget in expenses,and expenses are over estimate, we are make Pakistan on PROFIT
Islamic Banking is a good start in Pakistan with help of Ulmaa
Sahil adeem k sath ap podcast krein
Till 21 minutes there is no solution to the issue; don't have 63 more minutes to come to same conclusion.
The video should have been small and precise.
Video discussed economic topic of immense importance covering multifaceted issues.
You may like to view the video selectively for the solution by clicking on the timeline given in the description.
Looking forward for your comments on the proposed solution. It will be a time worth spending.