User talk:GerdKloewer

Social Security, MicroFinance,  Islamic Banking - the Savings Bank  Mit Ghamr

Savings and Investment are the basis of Social Security.

Savings and investment, as economists are explaining in  economic models, secure the capital supply for increased production and growth and create  social security and social  protection.

The system of Micro Finance developed by the Egyptian Savings Bank Mit Ghamr as early as 1963  went the same way: cheap credits, partnership between the bank with the clients , profit & loss participation,profitable  investments, leading to  increased social protection.

One of the forerunners of micro banking in Egypt was the Savings Bank of Mit Ghamr. Renowmned international pioneers are the founding fathers of cooperative societies like the Rochdale Cooperative, Friedrich Wilhelm Raiffaisen and Herrrman Schultze-Deltzsch in Germany, Mohamad Hatta in Indonesia, Ohmar Lotfi in Egypt and last not least Ahmed El-Naggar, who founded the   Savings Bank of Mit Ghamr.

This Savings Bank, established with support of the German Savings Banks Association, introduced a new micro credit system by operating without interest, based on Islamic Laws and traditions.

This savings bank later has been recognized as the first model  of an [Islamic bank], operating with participations (equity financing)and sharing of profits and losses, [Mudaraba], [Musharaka], [Murabaha], avoiding interest and usury.

Literature:

Khurshid Ahmad, Studies in Islamic Economics, London-Jeddah 1980 ( The Islamic Foundation 1980, ISBN 0 86037 067 4); Muazzam Ali, Islamic Banks and Strategies of Economic Cooperation, published for the International associatin of Islamic Banks by New Century Publishers, London,1982 (ISBN 0 946 110 00 X); Volker Nienhaus, Literature on Islamic Economics, Al-Kitab editors, Colone 1982 ( ISBN 3-88794-002-4) ; Gerd Gunter Kloewer, International Symposium Islamic Banks and Strategies for Economic Cooperation, Nomos publishers Baden-Baden 1982 ( ISBN 3-7890-0775-7).