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Home arrow Business & Finance arrow The art of RF (riba-free) Islamic banking and finance

Putting the RF Finance Movement and Discipline Together: A Step-by-Step Application of the RF Finance Procedure

This chapter is designed to give the reader an integrated view of how the different concepts and disciplines discussed in the book so far are applied in the unique financing process used in RF financing at LARIBA-Bank of Whittier. It is important to stress that what this book is presenting and advocating is a movement; we call it the RF Movement. The goal of this movement is to invite people of all faiths and beliefs to a new lifestyle; we call it the RF lifestyle. It is based simply on:

■ Living within one's means.

■ Redefining happiness and satisfaction in life to make happiness measured and felt not in terms of appearance and looks — as is promulgated in advertising campaigns which are designed to sell more and to entice people to consume more — but in terms of real things based on living humbly, helping those who need help and making a difference in the lifestyle of the community at large.

■ Abstaining from thinking about borrowing money as a rental process of money at a price called interest rate. This includes the use of credit cards as a source of renting money to extinguish consumptive instincts promoted by slick advertising campaigns. Credit cards, which were first introduced to market as “charge cards,” should be used as charge cards to facilitate the purchase of consumer needs and the settlement of consumer obligations with the commitment to pay off the balance by the end of the month of the billing period.

■ Approaching every expense we embark on as an investment that must be prudently evaluated in light of:

■ The macroeconomic status of the market after disengaging the confounding valuation effects which are introduced due to the use of paper (fiat) money. This is done by using the Commodity Indexation Discipline as explained in Chapter 3.

■ The microeconomic analysis of the actual value of the utility of what we want to buy in terms of its market rental (lease) value using the Marking-to-Market Discipline, as explained in Chapter 3.

The following is a summary of what the LARIBA System's efforts toward bringing to market a new banking and finance brand name: RF banking and hnance and the format LARIBA presents itself in the market.

 
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