Islamic banking system prevails over other banking systems
round 1) acceptance only.
Almost two-thirds of people who took out expensive payday loans have used the money to pay household bills or buy essentials such as food, nappies and petrol, a survey by Which? has revealed.
But while payday lenders say the loans help people ease through tricky points of the month, the research indicates many become trapped in a spiral of debt because they cannot afford to repay their loans by the agreed date, and so incur exorbitant penalty charges.
A third of people said they experienced greater financial problems as a result of taking out a payday loan, while one in five were unable to pay it back on time. A quarter said they had been hit with high, hidden charges for reminder letters and failed payments.
In Islamic banking interest plays no role.
A person who wants to buy a house, goes to the bank and says that he wants a particular house the bank buys the house,
lets say it costs 200,000$ and sell it back to him in 250,000$. He can pay back that money in installments and the money which he has to pay back does not keep increasing with time. of course there is a time limit for the returning of money. The bank can always add pressure on the debtor for the return of the money as the bank keeps something as mortage.
Since the bank does not charge any interest, the person does not end up getting trapped in a huge debt.
Other then that people who deposit their money in the bank do not recieve any interest, rather they become shareholders.
If the bank do not make enough profits they do not get any share, if they do make good profit, the shareholders
will get there share of profit acordingly. If the bank makes 20% profit in the end of the year, the shareholder may get 10% more money of what he has deposited.
In normal banks the amount of interest the depositers get back is fixed and only the top 20 % of the rich people keep getting the interest, while the rest of the 80% of the population is is usually giving the interest.
This increases the gap between the rich and the poor or average income family, which does not happen so much in Islamic banking system.
The amount of money held in Islamic banks totals about $1 trillion, or less than 1 percent of global financial assets. But in many countries Islamic banking is growing rapidly.
Erroneous Numbers and Facts
The amount of money a person will pay back isn't as simple as 10% or 20% any more, there are now complex equations to figure out what a person will pay back and 10% doesn't necessarily mean 10% and 20% doesn't necessarily mean 20%  .
The Islamic banking system doesn't actually stop interest ("money paid regularly at a particular rate for the use of money lent.") it stops some parts of it (you admit this yourself in your 3rd paragraph).
Why the Mixed ("Western") Banking System is Superior to the Islamic Banking System
Under the Islamic banking system it is much more difficult for small business to receive loans, this is because it is harder to distribute risk when accumulated interest is eliminated from the equation .
Furthermore the system known as Islamic banking could exist within the mixed banking system. It is totally within the realms of possibility for the sort of agreements that would occur in an Islamic banking system to occur in the mixed banking system. This is especially the case because if the populous agrees with my opponent about the superiority of the Islamic banking system. Under the system I would instigate, the people would be able to chose (through the free market) which system they would prefer and have some degree of choice in the matter.
The current version of the western system isn't exactly what I advocate as it has become shall we say a "little" corrupt.
Yes there are complex equation to find out how much a person will have to pay back, but still the money to pay back keeps increasing with time.
whereas in Islamic banking this does not happen
So the bank has lesser chances of getting bankrupted
Under the Islamic banking system the lenders will be less willing to lend to small businesses because they have to take on much more risk that they have to under the mixed banking system. This means that ultimately more people will be trapped in poverty, unable to escape because they cannot get any capital to start a business.
The Problem of Interest
I think my opponent should be reminded that the option of default is open to those who become trapped in debt. Now this does have its drawbacks but these people are not eternally trapped in debt. Furthermore remember that accumulated interest means that more people can have loans granted to them.
Also under the Islamic system when money isn't repaid on time there are a number of problems. The first is inflation, the value of money tends to decrease and because of this without charging interest banks will constantly loose money this means the economic viability for banks will be difficult.
The other problem is that banks will struggle to grantee a certain amount of income which causes problems both for share prices and the maintenance of a permanent staff.
|Agreed with before the debate:||-||-||0 points|
|Agreed with after the debate:||-||-||0 points|
|Who had better conduct:||-||-||1 point|
|Had better spelling and grammar:||-||-||1 point|
|Made more convincing arguments:||-||-||3 points|
|Used the most reliable sources:||-||-||2 points|
|Total points awarded:||0||3|