1Y SMU Publication: Berita Harian, p 4 Date: 11 October 2010 Headline: The only Muslim-owned Islamic bank in the U.S.

7 Scroll down for translation:

Satu-satunya bank Islam m..... warga Muslim di Amerika Lariba sediakun pembhgaan bebas riba bagi pm'mahan, perdugawan, perh&ngan dun hmderaan

hPhsILA DY Ypbip AM-- dstl k+p temannya menububkan Lariba: Amencan Fbmx H o w di Pasadena, W- bmia, h ~ i k ~ S-t, p d a 1987. tr&k sda sgiap plm wnyaru3kE ia wrupkM barJrynq meayedhkan pembiayam krhn- ~~.

Malah, ia meru akan stntsgi M b a tidak menguaruaLn entiti itu wbagai s e b u a h W t u r i k e w m g a n ~

Sebhva . is 'memru*m' cntitlnva

tulb atnu m a y . tidak ada ribs. msru- insrihai kewmgml W m Isrk-

ayaanvpclliper;l~~opn+.p~m. r l r - r r r W c r r t f " N - - biayaau mesm stau I-.L-

~ g 2 g Z c ' ! p b i a y p s l l kmde- r*w. L.4 R I M . c a n

rsiamyaqdlmll*iw~rgw.mdiAma*l svarht BE86 B U M lkbn Lariba di h& Jyarikat . "Apabih lrami membmtuk Mk pda

1987, tujuan kPml i h h menyedinkan MODEL LARlBA wad& baei membaatu Mmlim Anierika

yarq mewrkan plrbankan hcbar riba. - W1 URIM - ~- ~ ------

d6-G n i dmi memahlbi ~~-@ran dananamph.

LUmuijugaB(Iinsh!waipkad mclnburknn semuln ahpanan mereka de. ngm eara W," ksta Dr Y&a, sonng imam yaas juga junttera kimia ysae dim j d u h 'Bepa Kewangm~ Islun' di Amerika syarkit.

Psngrmd dan Kcrua Ptgwai EkAutif (CEO) L a n k dan d Whittier itu dite mu ramah OM Ehonmga setctph mmypm- &n uramah di Univnsiti Pcnmuum hgaplm 0 baru-bum id. ~ " u dim dam ke Sma~ura okh hflL Ua~llla Islam . - sipura (mi&).

C e d di SMU itu dianjurkan deb Pu- rat Kowaman d m Undam-Undam h m

php&n' . a h n Rrmarihati sama ada

w&& una niaga b pclabunn yang ha& ataupun tkbk.

b Fembayarm tidak dinruldran &man braan M a r faedah. la bmhsahn nilai m+a aasann bad hartqnqh yang hgin dlbbp~.

Nllal sewa diunukan reura bmama okh pdaggan dan Uriba.

b Larib bekerjasarna -a ad11 S m ) dan

E$%Zmanusiaan k h k u nu5akA

~ n t n r p e (IILFC) S& di b a d siri seminsr W r Datim& Pakar.

UEMBAIIGKM K E W A N W IUIIM: h Yahi AWuCRahman (kunrm) kmma Pengarah IIlK dan Juga Prdesor Madya UndanpUndang SMU. Profnof Mrew White, pcb cerdmah njuran SMU baru.baru inl. - Wfm MA. SULtH

Walauprui psda a d y a bribe dibentuk kssi manmuhi k&um Mudim di Axmi- Datam kalannan rmrsyanlpt Islam an&- ka; prod& dan khidmalayr turut men& minat warga Am& yang lain tidak kira elprma dan hlar bdakmg.

Menurut Dr Yahia, kihb-kitab lnji dan Taurat tun11 melarpng pengambilan riba atau bunga yang digelar ribit dalam knabkitnb tmebut.

J- beliau turut raennusul aror ws-

agar ia &pat mmarik minat lebih rand pcqB8Me.

L a n g k a h i l u a k m r n m b u k n ~ b a ~ y w &m depnt ditembusi i n c h i iui

u-bianb-*penripgnfn kawenmn kko riba addab ddam uw rue- ga & sepexti sukuk (bon Islam) dsa apa yannpsrh,kitalah*nnadplphmemerPlkPn p d k kita d a p t memenuhi kcperlunn

jdar DrYahia, yang ku-bprv inl melanurkaa buku me Arl of Islamic Banhme a d Finan.2.

Ilia@ SePerLi cik Farri; dan Endk Asiaq S h a W . an& kelPhirnn Indi. Muslim di h Andes, ymq mendapptkan p e m b yamdari$wbkribrbagifraafsisraagka- b M testonln aypm g m n g tcrLmnl, Ken- ~ F ~ c h i c k e n ~ .

"Bagi kami, ia sar~hr yang bik laRna

lz%?,",n&TPs=114: rpnn kera~ menyam- ceramah me-

d,sd&yangmsSihmas'guirpmaadaUIBhe itu ,$an bcrjaya.

Semm kami benr-baru memkntuti Lariba, tidak ramai yaw mahu menyemi dan melaburkan du;. ferdrpat &m tiada kqmcayasn dnlnm kdaogan mueka.

" P c m e h P r m m m r r k a ~ r l b . j u g a amat cetek Ilpn ada juga yaw memm same ada h u m h yaag k& ~~ bC1IPT--bC- nar memenuhi tuntutan Islam." ujar Dr Yahiq yaw maqimks m d a peijalanan- nya ilu.

Oleh kemn~ d s r &pat modal dari- p d a pelabur lain. Dr Yahia dan 20 raksn- nya t u e l a ~ duit hasil kcringat mereka

yai mbuab rmumab. - "KaibsPyalrcpad.nlw-nkalsayaitu, luakhh ASS10,ooo dalsm Lalibe dan jrka m p 'lumgdmd duil itu, j q m memb&i rsya m u r hidup amla," kata Dr Yahia.

Sorakru mula-muh mmvsdiplrpn khid- m a t h m w + ~ p a n - biavaan rumah dan kereta &ah blam tem- pot;ensmbvlaa

Telap6, k e a b n sudah jauh berben dan Lsriba lelah k i y a mendapat tempat di h U pe+ mereka.

"Jika an& mcmpunyai idee, jaagdn ber- bent3 anda menmpainya. Walau- p o q ~ . ~ l l g l a i n t i d a k ~ i d c P i t u a k a n beqayn. ltnmi tidak pum a. Kami meng- g u a h n duit kaml sendiri untuk membm- tuL h d b k

'bml bakh b e h q g a k e r n M b a telal~ mauapi banyak kepajuan sejak didi- rikan. m, kPmi maayeQalan pemMsyapn dmyak ASS384 juta," jelnmya.

Pada1004,DYY.hinmelqpnlbilPlihp- cuk pimpinan sebuah bank aPdonal yang

'Jangan am bil pinjaman pelajaran daripada bank konvensional'

71N6MW PENGETAHUAN l€MTANC P U I I A N W BEBU RIW htara pwna png mmqhadiri re SHU baru-bam ini.

kedl, Bank of Whimer. yary menjdi wadah tu kad menganggap pe1angg.o kami se- tambahanL-&produkdmkhidmntLulb. b m i a r u g o t o k d u a m k a m i ~ -

Kini, lan%a-manpunyai 50 kaldtanpn dan menyediakan Wudmat di kesemua negeri dl Am-.

Is juga banyak memanfaatkan Internet bsgi menysdlshan khidmarnya mdplui la- IURU Lani.com clan Whi~Bauk.mra.

m * u p w - i n r . Dr Yahk q rncmberikan ccramgh b u h mhaja y q dionjurkan masyarakat Mudim l d h o buhn Muslim bgi menin&aLkan kesedarPn meRLa mengemi prtwnlpn be- bBITlb&

Had kerja keras kumpulaanya, tabap peaerimssnperbankan bebm n i semakin

=ojhh h b s r i b kami dan ti& 'menyewakau wang' p d a hagP ylng di- panggil kadar faedah Wan diterima m q u a k s t tidak ktra ngam dm htar kln- kang.

ka-be&iian q a m i dan latar Glakang," ujar Dr YahlP, ymg mempmyPl MIU k a e yang amat wpn dan begitu menghmab o w lain - pwulannya.

Mcllgonghi bgaimm LprlbD menaw-

sep musharakah mufanaqbah atau *---

Pihak bank clan pelaiqgan membeli rumah termhi kmm dan seo~ninne tsm-

b. Pada masa yans ramp, pengguna aksn

mcmbayar sowi G p d a berik b-dgi penggu- naan kawasan nunah ymg dimi)iki bank itu.

Menurut Dr Yahla. uembentukan Lalik

" h a pcknooaa kmd jugs bema gembi- la kami didatan@ & y& men&- mdenpokbimnatyangkamitnwnrkankera- kmkamikcmakamlmanbantumac)rr.

Bagi pelajar yang ingin belajar di univeniti, nasihat saya ialah jangan

ambil pinjaman pelajaran dari pada

SEBELUM manbenluk Lrr: whys d a p phjmm penma- American Finance Home, Dr han k o n w m c a l Yabh Abdul-Rshmm pernab Bdlwju&asmstphlinapabi- membuka sebuah fimu dasangn la mengetahui rakan-rakannya k)celandan odinnggoinh- yaq ti& dapet zwhtndm );I- dana bagi membiaya7bea8URgn b&%w setan- c a n g p m ) a m s n p e ~ ~ ~ d univeniti dan

~ & . h n e A a S&L' Tttap~, Mum sullpi setiap

akhir bulaa akaun simpanan banknya'baqd.

"Saya pen& menda t gaji dan bwur rebMysL tu,upean& wpi setiap bulul, akaun saya koromn. lstai saw m e n v a n h

&an menjunam, Dr Yohip men- jual rumah mewabnya dam bapin- dah ke sebuah apartmen lebih k d .

Langkah itu menyelamatkan- n y a ~ s c l c l a b i l u ~ b a r - pndayaldiTcwi5berlaku,d nupmenfunamkatlhnrnnhattaonb

gsUa L70/.

"Bagi pelajar yang ingin bela. jar di lmimdti. nasibat saya ialah jaugan ambi pinjaman paaJarpn apapPda bank k o n v d Ba. yan$mn, pDda lulw daripda Mi. vcrdti dan mempunyai beban bu. taql wLm* llbuM doh!

1 lYUW 1 UVIUI . Jika anda periu

kerja lembur, kerjalah. Jangan ambil pinjaman pelajaran.

anva & g a h ~ h i ' ~ I& &,I, Zi h& pa& 1983; "Jib a& kerja l e m b , .. DC yrhfr Abdumtmn, mqlmbisJm duit say. dengan. Ramal rakannya terjerat de- hd"Lh J q a n dil piajamaa pcngerud bn ~,"ht=wbbasdmdr huEang nunah yang h r . pe*," k e h h

Apa yay,.? k i a l t ~ , Dry& m h k q ke I Mcsn ttu yang ke h r i k a S p *I Ehw(Cm) ujar Dr Ya la ~alab 70 pentus latan Califonria set& seam r*at lmtuk belapr dalam bklang &a bn h k Of

daripda p e d a p y y a digma- banker print di 8rms Sb-n kojunrteroan ldmia di U d v e d Whittier. h n bgi membmw m a b me- Lehmaa Wbmsio p d a 1968.

- - ramah d'impaibn DI Yahi AbduI-R

Oleh k e m a k n s a gembin denspll khid- mat Lsmi, memkn maujukkan Lpmi kepada

"Sap juga Euhlp gembira melibat ~yalgtidaklagiinginterjebrLdcRpn nidankinimemiKklnmahwrtkallDpr nidandapatmmye@kwdirimeraiu denganwagaAmerikayanglai~tPllpme lpDgbar undar$.undang Tuhan aped t u - catat daLm AlQuran dan sunah," tambah Dr Yahia, pnak kehbiran Mesir yang ke Amcrika sebami seornne whiar keilrmte-

- . nya.

WPlaupun m j a d i h p m y a untuk me- lunskm la@ Larih dl ntgara lain, beliau mengakui hasratnp tehmbat dek modal yong*d

Nmun begitu, Dr Yahia berkata kliau akan menemkan pejuangannya untuk wnycbprkrm meset dan kekuatan perban- kan bebas riba bukan sahaja di Amarika Synrikptmslshdiluarnegarsitu.

Lebih banyak seminar mengenai kewangan lslam

di SMU PUSAT Kewangan dan Un- Idr d a b kewangan dPn Mdsly-

dang-Undang Llam Antmbaug- undang Is+. sa 0 U n i v d P e m Diketus~ oleh Profaor Madp Slngapura (SMU) akan mengn- U n k - w SMU, Rofeaor jwkan kbih banyak m r kt- Andrew W W , ?'em- wangan Wnm bagi ski remianr rah Purat IILFC, pusat itu akan &ktja~ Dmipruia Pakm. bekerj- dew Pengum

top~r yaqg s ~ p n dispm- K e w a w n Singapurn WAS). wn d a b dr wm Kemeoterisn Uadang-undung, ki dan bulfn depan tcrmasuk Kement- Kewe, -

dan peoyrunn i- imtihsi keWangan;li Sinpprn E z z E L w n I s l a m . b l m - .

"Fungsi kajian dsn pendidi- hi kan knrnl a k ~ mempunyai ke- kanpada220Moberini. B d a&p& NWm- mdw perkem-

ber plla, topik ekuiti privet klam inlushikewaqanlnlamdiSinga-

dan penam aM seRr gn*- pura dm lmr nwra, sfrla mc-

tur pasaran Islam den f f ~ , " , " d ~ A ~ ~ r ~ sukukakandhm&am Tengab," m u r u t laman pwat

F'usat IlLFC itu d i i bedl h, uspha a Sek01.b h Mak1-t purmt daag-u- SMU ~~ dan seminar yang dianjurkla P-agaan Lee C h i . boleh didapatkan dl laman

Midnya idah mmja@k~ ka- hnp..Nwarw.smu.&sp'ceoW~i j i i dm mmjodi p e a t r a ~ ~ pemi- Wndex&sp.

Source: Berita Harian O Singapore Press Holdings Limited. Permission required for reproduction.

IY SMU Publication: Berita Harian, p 4 Date: 11 October 2010 Headline: The only Muslim-owned lslamic bank in the U.S.

Translation:

Dr. Yahia Abdul-Rahman, nicknamed the 'Father of lslamic Finance' in the United States, delivered a lecture in Singapore recently. Norhaiza HASHIM (norhaiza@sph.com.sg) was to interview him to learn of his journey in establishing an lslamic financial institution in the super- power nation.

When Dr. Yahia Abdul-Rahman and some friends set up Lariba: American Finance House in Pasadena, California, United States, in 1987, nobody thought it would be a bank that provides financing based on Sharia.

In fact, it was not their strategy to publicise the entity as an lslamic financial institution.

Instead, it was marketed as an institutional entity that practices riba-free, ie 'interest-free' banking.

Lariba, which means, 'without riba (interest)' is the largest lslamic financial institution in the United States that provides funding, such as housing finance, trade finance, business finace, financing machinery or factory, and automobile financing, all in line with lslamic Sharia.

It is still the only lslamic bank owned by Muslims in the United States.

'When we formed Lariba in 1987, our goal is to provide a platForm for helping American Muslims live without interests, to comply with the Qur'an and Sunnah.

'We also want to help our citizens invest their savings in a halal (legitimate)-based manner," said Dr Yahia, a priest who is also a chemical engineer, nicknamed 'Father of lslamic Finance' in the United States.

The Chairman and Chief Executive Officer (CEO) of Bank of Whittier, as well as founder and Chairman of Lariba, was interviewed by Ekoniaga after delivering a speech at the Singapore Management University (SMU) recently. He was invited to Singapore by the lslamic Religious Council of Singapore (Muis).

The inaugural session, "Learn from the Experts", of the Visiting Scholar Series, was organised by the SMU International lslamic Law and Finance Centre (IIFLC).

Although initially designed to meet the needs of Lariba Muslims in America, products and service are also of interest to other American citizens, regardless of religious background.

According to Dr Yahia, Bible scriptures and the Hebrew holy book of Torah, also prohibit the taking of riba or interest. Thus, he recommends the lslamic Banking be called Riba-Free or Riba-Free Banking, in order to attract more users. The move will open new markets that have not been penetrated by this industry.

"Most of the independent riba-free financial businesses are in large transactions, such as sukuk (Islamic bonds) and what we need to do is ensure that our products can meet the needs of the community, "said Dr Yahia, who recently launched the book The Art of lslamic Banking and Finance.

Now, 95 percent of Lariba customers are non-Muslims.

Among Lariba customers include non-Muslims, mosques, schools and retailers such as Mr Fouzia and Ms Asfaq Shabandri, India-born Muslims in Los Angeles, who obtained financing from Lariba for franchising the famous fried chicken restaurant chain, Kentucky Fried Chicken (KFC).

'For us, it is a good thing as free banking usury should be used by all religions, "said Dr Yahia, who speaks regularly at forums focused on lslamic finance at many universities, including Harvard University and institutions in Egypt, Malaysia, Singapore, Bahrain, Saudi Arabia, Dubai and Turkey.

Source: Berita Harian O Singapore Press Holdings Limited. Permission required for reproduction.

IY SMU Publication: Berita Harian, p 4 Date: 11 October 2010 Headline: The only Muslim-owned Islamic bank in the U.S.

Even so, he said his experience to form a full Lariba comes with twists and turns.

In the Muslim community itself, there are still doubts whether the effort would succeed.

"During our recent form Lariba, not many wanted to participate and invest in the funds. There is a lack of confidence among them.

"Their understanding of riba is very shallow and there are also doubts whether the solution we offer really meets the demands of Islam, 'says Dr Yahia, who was recalling his journey.

As it was difficult to get capital from other investors, Dr Yahia and 20 colleagues invested U.S. $200,000 ($264,000) to open Lariba in California.

"I said to my colleagues, put in US$10,000 in Lariba. If I 'burn' the money, do not hate me all your life," said Dr Yahia.

During our initial set-up, in the early days, Lariba provided financial assistance in home and car financing, for the first six months.

However, the situation is far different now, and Lariba has successfully captured the hearts of their customers.

'If you have an idea, do not stop until you get there. Although people do not feel the idea would be successful, we did not despair. We use our own money to form Lariba.

'We can be proud that Lariba has made great strides since its inception. Now, we are provid- ing funding of U.S. $ 384 million, 'he said.

In 2004, Dr. Yahia took over the leadership of a small national bank, Bank of Whittier, which is an additional platForm for products and services of Lariba.

Now, Lariba has 50 employees and provides services in all states in the United States.

It has also leverage the Internet to provide its services through its websites, WhittierBank.com and Lariba.com.

Not sufficient to merely conduct business, Dr. Yahia often gave lectures, organized not only for Muslims but non-Muslim communities, to increase their awareness of riba-free banking.

Through the hard work of the group, the level of acceptance of riba-free banking is increasing.

'Our philosophy of riba-free and not 'rent money 'at a price called interest rates, is increasingly accepted by society, regardless of religious background.

"Our customers are also pleased with the service we offer because we treat our customers as our family members, even though they are from different religions and backgrounds," said Dr Yahia, who is very polite in his manners, and respect others in the interaction.

Sharing how Lariba offers financial products to help consumers buy homes, he said the concept of musharakah mutanaqisah or 'diminishing musharakah' is used.

The bank and the customer buys the house together, and during the duration of the agree- ment, the consumer will buy back the ownership of the house gradually.

At the same time, consumers will pay rent to the bank for the use of the house owned by the bank.

According to Dr Yahia, forming Lariba gives him much satisfaction.

'Every time a transaction is completed, sometimes the customers will approach us and pray for us, for helping them. As they are happy with our services, they will refer us to their friends, family members and neighbors.

Source: Berita Harian O Singapore Press Holdings Limited. Permission required for reproduction.

IY SMU Publication: Berita Harian, p 4 Date: 11 October 2010 Headline: The only Muslim-owned lslamic bank in the U.S.

'I am also quite happy to see Muslims who no longer want to get stuck with riba, and who now have their home without riba, and are at the same time able to integrate themselves with other U.S. citizens, without violating the laws of God as stated in the Qur'an and Sunnah," added Dr. Yahia, a native of Egypt who arrived at the United States as a student of chemical engineering at the University of Wisconsin in February 1968, with just U.S. $ 17 in his pocket.

Despite hoping to expand Lariba in other countries, he admitted that his intention is very much constrained by his limited capital. .

However, Dr Yahia said that he continue his journey to spread the message of riba-free banking its strength, not only in the United States, but even outside the country.

LARIBA MODEL

Does not 'rent' money. Each transaction is an investment, not a loan. Lariba will advise whether a transaction is a good investment or not. Payments do not begin with the calculation of interest rate. It is based on market rental

value of the property to be financed. Rental value is determined jointly by the customer and Lariba. Lariba collaborates with customers fairly (tarahum) and humanely in the event of a problem.

More seminars on lslamic Finance at SMU

The International lslamic Law and Finance Centre (IIFLC) of the Singapore Management Uni- versity (SMU) will organize more lslamic Finance Seminars under its 'Learn from the Experts' Series.

Among the topics that will be delivered in the seminar for this and the following month, include documentation and risk management in lslamic Finance.

This month's seminar was held on 22 October 2010.

For the seminar on 12 November 2010, the topic, Private Equity and Asset Management as well as lslamic Structured Capital Market and Sukuk will be discussed.

The IlFLC was set up as a joint partnership between SMU's School of Law and the Lee Kong Chian School of Business.

Its mission is to conduct researches and to lead-think in the areas of lslamic Finance and Law.

Headed by SMU's Associate Professor of Law Andrew White, as the Director of IILFC, the Centre will work with the Monetary Authority of Singapore (MAS), Ministry of Law, and finan- cial institutions in Singapore and overseas.

"The function of our researches and education will have widespread effect for the growth of lslamic finance in Singapore and overseas, and will enhance the cooperation between the major financial markets in Asia and Middle-East", according to the Centre's website.

Information on the Centre and its forthcoming seminars can be obtained from the following website, http://www.smu.edu.sg/centres/iilfc.index.asp.

Source: Berita Harian O Singapore Press Holdings Limited. Permission required for reproduction.