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3 pages
1 file
fiqh
2024
This paper is dedicated to my self-learning on a book named "Introduction to Islamic Banking & Finance" by M. Kabir Hassan, Rasem N. Kayed, and Umar A. Oesni. It answers the question in every chapter in this book, hopefully.
IJARW, 2019
Islamic System of Baking and Finance is based on the principles of Sharia Law and is applicable all over the Islamic economies. In this paper, the objective is the study the history of Islamic financial system, its origin, the concepts and terminologies used. The main differences with conventional banking system shall be highlighted. Regulatory bodies like Sharia Auditors and Sharia governing bodies shall also be discussed. The main focus would on discussing the main financial tools used in Islamic banking and the concepts behind those terminologies.
islamic banking and finance
Islamic banking is banking or banking activity that is consistent with the principles of shari’ah (i.e. the Way to the source of life) and its practical application through the development of Islamic economics. Islamic bank is different from conventional bank on the basis of payment and receipt of interest. The foundation of the Islamic bank is based on the Islamic faith and must stay within the limits of Islamic Law or the Shari’ah in all of its actions and deeds. This articles discusses the meaning of Islamic Banking and the principles on which it is being operated. It also mentioned some relevant evidences from the Qur'an and the Bible that consolidates the correctness of the basis as the best and right means of catering for the financial needs of the people. Finally, a url link of the video produced by Ethica Institute of Islamic Finance titled "Why Islamic Finance" to further explain the need for Islamic Banking, is also provided in the article.
The raison d'être of this article is to supply basic insights on the origin and characteristics of the Islamic Banking system, its distinguishing features, and related contentious issues that have remained the subject of ongoing debates among Sharia' scholars and members of the academia. These were analyzed by referring to the principles of Muammalat (Islamic economic transaction), which are derived from the Holy Quran, Sunnah of Prophet Muhammad (p.b.u.h.), and Ijma' (consensus) of prominent Sharia' scholars. Contrary to the conventional banks, Islamic banks are required to operate according to the principles of Muammalat, which are identified as the avoidance of Riba', Gharar, Maysir, Hilah, and the promotion of ethical business practices such as justice, fairness and transparency. The 2008 global financial meltdown has created a unique awareness among banking consumers on the need of an alternative to complement the conventional banking system, which was viewed by financial scholars as suffering from a crisis of failed morality as a result of greed, exploitation, and corruption. Likewise, many may viewed that the Islamic Banking system is merely another attempt to capitalize on the pulling power of religion towards people, yet there are a number of interestingly unique features that accentuate it from the other banking alternatives. In essence, it is aspired that this article may assist fellow readers, especially those who are still new to this alternative financial system, in understanding and appreciating its unique features, and further stimulate future research in this field. Insha'Allah (God's willing).
This essay attempts to discuss the principles of Islamic financial system based on Sharia law and its efficiency in the real world. It is achieved by overlooking different methods of Islamic financial and banking system. The focus of the essay is on the examination of Islamic financial system and its approaches in the Islamic countries, especially those sharia-based law countries. Sharia law is based on the Holy Book of Muslims Quran and on the traditional teaching of Prophet Muhamad in the so called Sunnah. Even the most restricted Islamic banks are using conventional banking methods under the cover of Islamic slogans. Despite these methods, the share of Islamic banks when compared with conventional ones is extremely low. The other inefficacy of Islamic banks involves reducing customer's freedom by prohibiting all interest-methods and giving them some dictated options only.
Article, Economical Herald of Donbas Quarterly , 2010
Islamic banking is a phenomenon of the finance and banking world in the recent decades. Rejecting interest policy as an instrument for any business activity, Islamic banking is based on the substitutions for interest that are profit, rental, commission, and wage, all of which are regarded as legitimate earnings of trade, its derivatives, joint venture and partnerships, leasing, and other lawful and real economic activities. Before explaining the interest free finance and banking methods, this paper first criticizes the interest policy, tries to uncover its nature, and its prohibition reason by the Quran. Then, it makes brief ‘interest-rental’ and ‘interest-profit’ comparisons. The paper also deals with the foundations and some basic characteristics of Islamic banking together with its practical appearances in the world. KEY WORDS: Interest/usury, Islamic/interest-free banking. JEL Classification: G21, G24
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