“Financial portfolio” for each bank customer to halt usurious interest rates

Several banking institutions in Algeria are currently examining the study of “Islamic Profit Margins System,” which is expected to be launched as options to those citizens who refuse to retrieve the banking interest rates for faith reasons starting from next October 2015.

These two standing options are either related to “participation and speculation” or “Murabaha or profit” system and in every case it will not be possible for citizens who deposited money in the banks to take advantage of the profit margin, by the end of the year, as it might reap zero dinar if the relevant bank failed to achieve any net profits.

Some financial sources told “Echorouk” that the vaunted Islamic profit margins’ system is now being studied at the level of 5 public banks and is expected to be further expanded.

The profits margin will be determined by the size of the amount of money deposited in the bank account and the time period during which it was filed, on an annual basis.

This proper banking Islamic-oriented system is expected to contribute to the gradual and full removal of usurious interest rates from a large part of the national banking institutions, the same sources added.