It's no secret I'm a monetary reformist, and I think Sharia Banking is a step in the right direction. Banks should definitely share more of the risk, and contribute more of the labour, to earn their percentages.
And charging interest is still usury.
I rather think, however, that banks in moving in on the Islam market, are more interested in gradually subverting Sharia, than adopting it.

I am all for a community based lending and saving type of system. It could be run on a user pay situation without share holders.
Big banks are for share holders, They have to earn billions each year just to please shareholders. Our govt should run a community bank.

I think in the end the only way western views on Islam will improve is if we see a little more democracy and human rights observed and a lot less bombing. How you lend money is of little concern.

An interesting and timely article.

Somewhat bitter, in parts...

>>...the community focusing on... the global financial crisis rather than revitalising old and tiresome debates about Muslim women’s clothing.<<

And contentious, too.

>>Islamic finance has recently risen as a topical debate in Australia due to its resilient nature in the current financial market.<<

Given that the market conditions affect every business - not just Banking - "resilient" might just be something of an overstatement.

Here's some recent commentary from Euromoney, the world's leading financial magazine, observing the fallout from the first major default on a sukuk (Shariah-compliant bond)

http://www.euromoney.com/Article/2245562/Islamic-finance-Sukuk-market-on-trial-as-Islamic-bonds-default.html

The broader concerns are cultural, rather than financial.

"Shariah law doesn’t even contemplate a default, because you can’t default if all you’re ever giving is a profit share. If there are no profits, then you aren’t defaulting. You are just deferring, or sitting around the table to discuss,"

The article also observes that

"One of the principles of Islamic finance is that participants must share risks and benefits... 'Unfortunately these instruments were sold to western investors who expected that the profit terms were equivalent to interest, and so a fixed obligation,'"

Another issue is, unfortunately, that the products themselves may be subject to changing religious opinion

http://www.arabianbusiness.com/504577-most-sukuk-not-islamic-say-scholars

However, there is without question a place in the financial market for Shariah finance.

As a small business owner, I would value highly the participation of a Bank in the growth of my company, as opposed to simply signing my family home away as security for a high-interest loan.

It's almost a no-brainer.

But the shift of our economy onto that level of trust and cooperation in financial matters is not going to happen in my lifetime.

For a start, there's an entire culture that needs changing.

Bank participation in Australian businesses today usually signals the onset of an orgy of gouging and profiteering.

And in case there's a Macquarie Bank lawyer reading this, no, I'm not talking about Sydney Airport.

A piece of Islamist's propaganda. The French President should have not only banned the silly burqa but also the hate book of the Islamists, the Koran; the book that has kept Muslims backward and frozen in time since the 7th century.

“Those who make no effort to understand Islam and its extensive intellectual history will never be able to embrace an intercultural attitude…”

Perhaps Ms. Maria Bhatti would like to enlighten non-Muslims how the wearing of trousers by Muslim women is deemed indecent and deserves to be canned? Or how drinking beer deserved 6 strokes of the cane?

http://news.bbc.co.uk/2/hi/africa/8147329.stm [Sudan women ‘lashed for trousers’]

http://news.smh.com.au/breaking-news-world/beerdrinking-model-faces-caning-20090721-drmu.html
[Singaporean Muslim model sentenced to six strokes of the cane in Malaysia after she drank beer.]

Dr. Patrick Sookhdeo (Pakistani descent), an ex-Muslim specialising in Islamic matters gave a 50 minute talk “Understanding Shari'a Finance: The Muslim Challenge to Western Economics”. He has also written a book by that title.

http://www.heritage.org/press/events/ev032409b.cfm {streaming audio}

Sookhdeo has shown conclusively that Islamic finance as we know it today is part of the Islamists’ agenda to establish the Islamic caliphate.

Islamic Finance is fine with me; cant see why Phil T is so hot and bothered about anything that smacks of islam ( and there is certainly a lot of smacking that goes on in parts of the Islamic world).