The Added Value of RF Banking
New RF banking institutions need to let the market know—through prac-
tice, experience, and track record—the answer to a very important ques-
tion:What is the added value of investing in RF products and services?
Here is a brief list of the significant sources of added value that RF
bankers need to articulate to the newcomers to the emerging RF banking
industry and put into effect in the day-to-day operations of the RF financial
institution. These added values are taken seriously by the RF institution’s
management and staff, who are trained and instructed to be serious and sin-
cere about implementing the following code of ethics and mode of opera-
tions in their RF banking practice:
&The ethics ofhalal(divinely allowed) andharam(divinely prohibited).
&The discipline of theknow-your-customerrule in banking and finance,
because RF banks serve all people in the community of faith-based con-
gregations, including members of temples, synagogues, churches, and
masajid (mosques).
&The deep-seated belief that RF financial services are available to all
community members of all faiths and backgrounds without discrimina-
tion of any sort, because discrimination is one of the worst offenses
against the higher authority we all subscribe to in the Judeo-Christian-
Islamic value system (i.e., God).
&The policy of full transparency, proved by full disclosure and full docu-
mentation of contracts and all related parties.
&RF banking is:
&Asset/services-based financing
&A socially responsible system
&Asystembasedonthemark-to-the-marketandcommodity index-
ationrules as capital market tools to ascertain prudence in investing
and financing
&Based on the belief that credit is one of the important basic human
rights
&Superior, because it offers lower risk and better return on investmentWhat is RF Banking and Finance?
As was discussed earlier in the book, RF finance is not only about the me-
chanics of financing. It is a new banking brand, designed for people of all
faiths. The Judeo-Christian-Islamic value system prohibits the culture of
renting money at a rate called interest rate and the abuse of the power of
Operating an RF Bank in the United States 319