The Peace Bank
The Peace Bank
Nowhere is disparity among the people of the world more evident than in socio-economic opportunity, a gap that is widening at a faster rate than ever before. The Prophet (PBUH) has foretold us of a time when the spread of *”Riba” (usury) would be so overwhelming that it would be extremely difficult for the people to avoid it. This situation calls for people to be extra cautious before deciding on what financial methods to use in personal or business transactions. We believe these times are upon us now.

Conventional systems of banking are profit-driven, and largely dependent on investments of capital derived from the interest charged on loans, and from certificates of deposit and other banking products. Zayed Peace Foundation hopes to bridge the wealth gap with the formation of Peace Bank. Peace Bank will follow the concept of cooperative banking, a system of banking in which depositors become both customer and owner. Consequently, depositors will share in a greater portion of the wealth generated by their deposit investments, as well as have extremely transparent reports on investments by the bank. There will be no fixed interest. Further, all investments will be held up to stringent standards of ethical investment practices, with tangible investments being the mainstay of the Peace Bank’s investment practices.

Grounded in the concept of ethical business practice and charity, Peace Bank will seek to impact the economic gap in several ways:

First, Peace Bank will avoid the conventional banking practice of “Riba” or usury (interest), that is, unearned income. This means that the depositors be the owners-customers rather than the bank; and, receiving the greater direct benefits from depositors’ investments, the economic gains will be structured on actual investments yields and the profits are shared rather than fixed.

Second, net income generated above and beyond that which is returned to shareholders and used in covering operations overhead will be used to fund charitable projects within the area of each bank’s location. Distributing real wealth and building a sense of community will be primary goals of the Peace Bank, and will be achieved through investment and economic stimulus programs in the communities where each bank is located.

The Peace Bank will also explore the areas of micro-financing in poorer nations where the system has yielded measurable benefits to the lower strata of the socio-economic structure.

The Peace bank will be headquartered on Peace Island, and will be a tax -free haven for proven charitable entities, allowing more wealth to reach those in actual need. With the world’s most competent and effective economic advisory services available, the Peace Bank system will be in a position to assist charity organizations in their overall success by advising and assisting them in their efforts to become sustainable. Creating self-sustaining systems will ensure greater social and economic growth to a larger number of people around the globe.

Peace Bank will not be perpetuating the credit crisis that is caused by purchasing debts. We will purchase only tangible assets, and our prospectus will reflect the investments that were made on behalf of our customer/owner. Income generated beyond what is returned to shareholders will be used for local charitable projects. All people want the community around them to improve in response to their actions – we want to know that we can affect our environment. At Peace Bank, we show the effects of investment to the customer locally, and this creates a healthy synergy of repeated transactions and resulting effects. A customer is much more likely to patronize a bank if he knows it will benefit the local center for the handicapped, or the local children’s school. At Peace Bank, we recognize that a respectfully and fairly treated customer is our friend for life, and we expect a long and prosperous partnership between ourselves and the communities, which we serve.

*"Riba" is the antithesis if the Qur’anic Economic order. An Economy based on ‘Riba’ results in individuals or organizations growing as parasites on the Labor and efforts of other people instead of their own, and cause massive economic exploitation and the emergence of Class conflicts. In a ‘Riba’ based Economy, the wealth is restricted in the hands of a minority only while in the Qur’anic Economic order the wealth circulates evenly in the whole of society and there are no class conflicts in the form of Rulers, and Capitalists against workers or laborers.

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The group behind the funding of the bank will be announced, as well as the Peace Bank's first CEO. We are seeking a maverick in the banking industry and expect this unusually humanitarian project to set new standards in banking principles.

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