profit and loss. After scrutinizing the application and exercising pru-
dence, we found out how much loss he had. We declined the financing
(i.e., the investment).
4.Educated and sophisticated customers. ThesearetheyoungAmeri-
can-educated and trained professionals who are used to asking ques-
tions and who are keen on getting straight convincing answers that
make sense. They respect the opinion of scholars, but they want to
know why things are done in a certain way and how the scholars
arrived at their edicts (fatwa). They want answers that appeal to
the mind and to the intellect. They demand answers that prove that
the RF finance makes economic sense and offers advantages over the
alternative conventional riba-based system. They are savvy, Internet-
conversant, and sophisticated in analysis and in reaching conclusions.
These customers are, in fact, the best customers for a bright RF bank-
ing future.SHARI’AA AND THE LAWS OF THE LAND
The many different and sometimes opposing undercurrents, mainstream
constraints, and varying participants detailed above make the process of de-
veloping a true RF banking operation a huge challenge. These challenges
had to be met and resolved wisely, and all the pieces of the puzzle had to be
put in place to pioneerthe art of Islamic banking and financein the United
States. It was a huge challenge. Here is a list that gives an overview of the
major issues:
&Where should we start? We did not have the capital to apply for a bank
charter, and even if we did, how could we apply for the charter of a
bank run without riba in a business environment that only knows and
recognizes riba-based conventional banking and finance transactions?
&Who would run the bank or the financial institution? There are very
few experts and practitioners in the field. It was also challenging to
know that those with banking experience are employed by established
banks and are paid high salaries. Bankers with Islamic banking exper-
tise are employed with very high salaries by the well-capitalized and
rich Islamic banks in the Gulf oil-producing countries.
&Where could we find an attorney that had the expertise and was afford-
able, given our limited resources?
&What financing model should we use, and would it comply with the
laws and regulations of the United States—our country—without vio-
lating Shari’aa or the Judeo-Christian-Islamic set of values?244 THE ART OF ISLAMIC BANKING AND FINANCE