During a workshop the East Chamber
Rabiah: Positive banking based on granting loans without benefits and there is
no increase in the prices of goods for the cash price as a result
Chairman of management Deputy of the Saudi Company steel pipe, engineer,
Riad Youssef Al Rabiah, stressed on the existence of other channel other than
traditional banking, based on granting loans without interest and without any
increase in the prices of goods for the cash price, it also can increase sales
companies and reduce the accounts it has.
Al Rabiah, said that this new channel, called positive banking, which
does not interfere with the legitimate restrictions, and is coordinate with the
spirit of Islamic finance, pointing that it is an opportunity to finance
individuals and small and medium enterprises, also the big ones, which find it
difficult to finance through traditional banking.
Al Rabiah, was a guest at the workshop, held by the East Chamber, Sunday
evening, April 3, entitled, financing solutions under the economic changes, to
talk about the positive banking, as one of the innovative solutions to make a
local economic movement .
The workshop was attended by a number of board members, businessmen, and
professionals interested in the banking issue, such as banking expert, Mousa Al
Mousa, and managed by the Chairman of the Chamber of Industrial
Committee, Abdullah Al Saney.
Al Rabiah, said that the positive banking is based on a simple rule which is
that the indirect returns by not taking or paying interests are
much bigger for companies and individuals, community and national banks from
direct bank interest.
saying: It's based on a previous commitment to the company whatever its
activity in retaining permanently to the commercial bank with current
deposits no less than the level specified by the bank itself that these current
deposits serve as a full guarantee for the bank in order to grant the company's
customers bank a fund without benefits.
He pointed that positive banking may significantly contribute in solving
the problem of lack of currency experienced by banks sometimes, because
under the positive banking, any deposit received by the bank it lends, and
therefore the money does not recycle or pile up.
Rabiah, pointed that the positive banking proceeds from the idea of providing
benefits to the citizen, which is interest free loans, and helps savings,
reduces costs, reduces debt and streaming of production and focusing on
sales, and opening the way for currency investment, differentiating between
them and traditional banking, the relying is on the owner of negative account,
while in positivity, the relying is on the seller owner of the positive
balance, thus the burden moves from borrowers to depositor. He pointed that the
positive banking is not different from conventional banking in terms of the
usual procedures in granting loans, and procedures in the event of payment
delay, except of not imposing interest and delay penalties.
Rabiah, noted to the possibility of positive banking application in various
economic fields, including real estate development, and then fixing the
shortage the community suffering in the real estate ownership
percentages, so that the seller, the real estate and developer should contribute
in taking the risk with the bank, which makes the seller shares the Bank in
making sure of the qualification of the buyer so the bank does not handle the
risk alone.
