E1BINDEX 10/28/2009 13:23:43 Page 392
Renting.See alsoLeasing (ijara)
process, 57, 58
riba-free legal foundation for, 57
Shari’aa rules on, 19, 56–58, 215
Reserve currency, 89
Reserve requirements, 174, 175
Retirement savings, 103, 133, 134, 148,
150, 371, 378
Return of capital (RofC), 264, 265, 269
Return on capital (RonC), 252, 264–267,
284, 349
Return on investment, 86, 87, 129, 147,
201, 228, 252, 258, 265–267, 285
RF bankers
commitment, 150
concentration, 149
consistency, 149, 150
ethics, 145–150, 199
and ideal faith-based society, 140, 141
and Judeo-Christian-Islamic value sys-
tem, 138–140, 196, 197, 199–201
private bankers, 324–326
professionalism, 149
recruiting and interviewing, 328, 329
role of, 197, 264
social responsibility, 143, 148, 197
Ten Golden Rules for an RF Banker,
150, 151
RF banking and finance
added value of, 319
balance sheet, 337–341
bank fees, 340
Bank of Whittier.SeeBank of Whittier,
N.A.
banking model for 21st century.See
Shari’aa-based finance model
benefits of, 282, 319
and commodity indexation, 105, 128,
275.See alsoCommodity indexation
compliance with Judeo-Christian-Is-
lamic law (Shari’aa) and Western
banking laws, 9–11, 201, 245–248,
318, 320.See alsoShari’aa (the Law)
concept of, 318–321
customers, 2, 243, 244
defined, 199
demand for services, 380, 381
described, 1, 2, 199, 200fatwa and Shari’aa, sources of, 353
financing future production (ba’i ul
salam), 59
future of, 379–381
history of, 2, 3, 191–196
interest and fees, 340
internal controls, 166–168, 323, 324
investment banks, 147, 148
investment products.SeeInvestment
products
leasing (ijara), 56–58
lines of credit, 345, 346
loan servicing, 347
loans, buying and selling, 346, 347
and mark-to-market rule.SeeMark-to-
market rule
money management (mudaraba), 59
nomenclature, 8
objectives of, 199–201
overview, 196, 197
participants in development of,
233–243
public perception of, 1, 8
restructuring riba-based bank as RF
bank, 342–355
riba-based conventional financing
compared, 201, 202, 283–285,
315–317, 338–341
risk management, 352–355
servicing of financing, 269–271, 275,
276, 347
Shari’aa-based finance model.See
Shari’aa-based finance model
social responsibility, 148, 149
special fund for needy, 340
starting an RF bank in the U.S.SeeBank
of Whittier, N.A.
strategies for building RF banking
system in U.S., 321–323
successof, 103,267,277, 379, 380
Ten Golden Rules for an RF Banker,
150, 151
terminology and misnomers, 197–199
unsecured loans, 345, 346
RF credit analysts, 325–328, 336
RF mortgage-backed securities (MBS), 359
Riba
and buy/sell transactions, 198392 INDEX