Business and Finance Information

Archive for the ‘Islamic banks’ Category

It is estimated that 1610 million Muslims worldwide, so that the Islamic bank in the fastest growing segments of the financial industry. Banks cater to the Muslim population has a very specific set of principles of Islamic law in order to retain existing customers and attract new ones. Banks should be willing to develop products and professional services and programs exist to train their employees to support these products and services in this competitive market. The basic principle of Islamic banking follows the laws of the Sharia, as Fiqh al-Muamalat (Islamic rules on transactions) are known. The term “Islamic banking” by “full-reserve banking” and “Sharia banking.” The main feature of these laws is synonymous with usury – the prohibition of paying interest or cash in the fund. Islamic terminology is riba, or usury Sharia also prohibits the sharing of financial assets, the unknown, like buying and selling futures, and companies are prohibited -. specializes in products that are contrary to Islamic law and values such as alcohol, pork, gossip or pornography. These principles apply to all persons, companies and governments. Read the rest of this entry »

The notion of Islamic banks have emerged long ago, many Muslim thinkers who wrote about the existence of Islamic banks, such as Anwar Qureshi (1946), Naeim Siddiqi (1948), and Mahmud Ahmad (1952), early 20th century was a time of resurrection Islamic world. This condition leads to a new awareness to apply principles and Islamic values in real life.

Pioneering application andloss profit-sharing system, as the core of Islamic financial institutions listed business has been operating since the 1940s, that efforts to manage funds in a nonconventional pilgrims in Pakistan and Malaysia. Articles that represents the next milestone in the development of Shariah, Islamic banking area Mit Ghamr Rural Bank which was founded by Dr. Ahmed el-Najar of capital in aid by King Faisal in 1963 until 1967 in Cairo, Egypt, although the operational ultimately taken over by the National Bank of Egypt and Central Bank of Egypt.

Collectively the idea of the establishment of sharia banks at the international level, appeared in a conference of Islamic countries worldwide in Kuala Lumpur, Malaysia, in April 1969, followed by the 19 participating countries. The conference resulted in several things, among others: (1) Each benefit should be subject to the laws of gains and losses, if not it includes the usury and usury is a little / lot is unlawful, (2) In proposing to set up an Islamic bank is clean and the system riba in time as soon as possible; (3) While waiting for the establishment of Islamic bank time, banks are allowed to apply interest to operate, but if you are really in a state of emergency. Read the rest of this entry »

Like conventional banks, Islamic banks also have an intermediary function. The difference only lies in the instrument used, if using a conventional bank interest, the Islamic banking forbids interest and self-interest and as an alternative of greater emphasis on the principles of profit and loss sharing. Besides the function of intermediation, Islamic banking also performs ta’awwun (social).

Theoretical concept of interest-free banks first appeared in the 1940s, but not yet to be realized, other than because the condition has not been possible, yet also have thought about convincing the Islamic bank. Some thinkers who expressed the idea of banking based on profit sharing Anwar Qureshi (1946), Naiem Siddiqi (1948), and Mahmud Ahmad (1952). Furthermore, a more detailed description written by Mawdudi in 1950 (1961). Muhammad Hamidullah’s writings, written in 1944, 1955, 1957, and 1962 also are categorized as a preliminary idea about Islamic banking.

At the beginning, the establishment of Islamic banks is questionable although the 1975 Dubai Islamic Bank was officially established, as well as Pilgrim’s Management Funds in 1962 and after the decisions of Conference of Islamic countries in the entire world in April 1968 in Kuala Lumpur about the Islamic bank, the bank Islam began to bloom. Islamic bank set up at least a doubt due to: first, many who argue that interest-free banking system is something that is not possible and is therefore not uncommon. Secondly, the question of how it will finance the Islamic banks operations. But in the end the supporters of the establishment of Islamic banking can ensure that efforts to fruition. Read the rest of this entry »