This study debates upon the history of Islamic banking. What are the ethical issues involved in the implementation of Islamic banking. Since the birth of Islam what type of steps are taken and by whom these measurements were taken. Besides this this paper also declares the response and customers point of view regarding Islamic banking with the help of different studies.
History of Islamic banking
The term Islamic banking got regular in the 1960's, however the systems and thoughts of the framework were suggested and utilized since the conception of Islam. Numerous studies and explores have indicated that Islamic money components were utilized within the Muslim world all around the Middle Ages; in leading exchange and business exercises. Charging investment on credits was not regular in those days. The first run through investment bearing credits were generally utilized within the Muslim world, particularly in the Middle East, was throughout the Ottoman Empire's governed in the fifteenth century. Mehmet Ebusuud Efendi, the senior Islamic minister of the Ottoman Empire, issued a fatwa (decision) permitting the charging of investment and thinking of it halal (allowable) as long as it was underneath 10%. Despite the fact that it was clear in The Holy Quran that investment was strictly disallowed, practically nobody could challenge the senior Islamic priest's decision since testing him might mean testing the Ottoman Empire's guideline. Brokers in those days were generally Jews and Christians; a significant number of them were Greeks and Armenians. The freedom of Islamic nations accompanying World War II joined with the renaissance of Islamic slant set the stage for the cutting edge time of Islamic fund. The primary Islamic notions ident...
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... capital. Islamic budgetary frameworks are more stable than the conventional keeping money framework because of the end of obligation financing. It likewise decreases expansion in the economy and can't furnish the cash to go higher than the supply of products. Islamic banks are less unsafe than traditional banks, both for moguls and business visionaries impart a portion of the dangers included in the business. Contemporary Islamic banking is succeeding in fulfilling its objectives of moral contributing with intense monetary returns. At the same time its best test will come within a brief period of time as it must refine and create its practices while staying accurate to the ethical precepts that underlie them. Through refined practices, moral contributing, and intense returns, Islamic banking will be maintainable even without the extensive imbuements of petrodollar.
Islam is a monotheistic and Abrahamic religion alongside Judaism and Christianity. It is currently the second largest religion in the world today. Its beliefs come from the Qur'an which literally means "the recitation" which is believed to be a literal transcription of the word of God. Its main prophet is named Muhammad who began Islam by speaking with the angel Gabriel in a cave during his meditation and then acting as an instrument of God to help write the Qur’an. Muhammad then spread Islam to the scattered tribes of Arabia by becoming the leader of Yathrib and using his wonderful leadership abilities to then grow his influence over virtually all of Arabia. Muhammad is known by Muslims to be the seal of the profits because no profits after Muhammad should be considered legitimate. Muhammad also left behind the Hadith or “tradition” which is a collection of writings compiled of reports of Muhammad’s actions as leader of Yathrib. These reports are used as a more specific code of ethics in day to day life and from these reports the 5 Pillars of Islam are derived (Smith 160). Although Islam shares many similarities to Judaism and Christianity it is often viewed in the US with hate derived from preconceived notions following the attack on September 11th 2001. This paper seeks to provide an overview of Islam’s history as well as its two major sects and 5 main pillars to remove preconceived notions and provide a glance into the minds of the Islamic people.
...uptcy which forced the establishment of the Ottoman Public Debt Administration in 1881. This administration would later become the framework of the International Monetary Fund still existing today.
Moreover, he does not explore Islamic capital regulations institutions, such as betulmal, which is a centralized financial institution that manages tax administration in Islamic states., And despite his global and transhistorical approach, Frieden pays little mind to economics in the early Islamic Caliphates.
Most people know little or nothing about Islam; they have many misconceptions about Muslim beliefs and rituals. Regardless, Islam has gained a large following and is the second largest religion in t...
Zaidon, S. (2008). Satu Tinjauan Literatur Penggunaan Portfolio Kanak-Kanak. Kampus Pendidikan Islam, Maktab Perguruan Islam.
The modern Islamic Finance industry is young, its timeline begin only a few decades ago. However, islamic finance is involving rapidly and continues to expend to serve a growing population of muslims as well as conventional.
Ahmed, A. S. (1999). Islam Today: A Short Introduction to the Muslim World. New York: I. B. Tauris.
“Islam (religion).” Encyclopedia - Britannica Online Encyclopedia. 2010. Encyclopedia Brittanica. 11 January, 2010. < http://www.britannica.com/EBchecked/topic/295507/Islam>
As the world has recently passed through the global financial crisis that begun in 2008 in the USA with the banks’ collapsing, analysts are giving different opinions and making new economic hypothesizes about the origin of, as well as the process of different countries escaped from the crisis. Among all these new “theories”, the case of Islamic banks is interesting in terms of its nature and consequences. In my essay, I will try to highlight the basic principles of the Islamic finance, the reasons of the restriction of interest, the most important tools used by Islamic banks in economic activities and brief explanation of them, and finally my view point of the probable future improvement of the Islamic financial system.
Islamic nation. As examples given earlier about modernization which includes nations such as Turkey and on the other side of the spectrum the practice of Islamic Shariah. As a final note, my main objective from this book review is to see Islam from the eye of Muslims and Non-Muslims alike.
Conventional banks similarly work in light of a nation’s money related laws and directions; however, they don’t have contact with any religious body. Islamic commercial banks have numerous items like those offered by ordinary banks. The key contrast is that conventional banks earn their money by charging premuim and expenses for administrarions, while Islamic banks acquire their cash by profit and loss sharing, exchanging, renting, charging expenses for administrations rendered, and utilizing other sharia contracts of trade. Conventional banks are operating is interest, in Sharia’ah known as “Riba”. Interest is not allowed in Islam and is strongly condemned which is followed by serious consequences in the life and hereafter. In every religious also not permissible to earn interest. Interest which only makes the investor earn more and the business or entrepreneur
Religion is an important factor in many lives in today’s society. A particular western religion that is taken very seriously by many is known as Islam. Essentially, Islam means “submission”, or in other words a person is to abide by God and peace will follow. In order to comprehend the Islamic religion, it is consequential to view the major themes associated with this religion. By going through the central themes of Islam it could help others comprehend what is involved with this specific religion.
The overall discussion of risk management based on the Islamic law or maqasid al-shariah. Chapra quotes al-Ghazali in defining maqasid as promotion of “the well-being of the people, which lies in safeguarding their faith, self, intellect, posterity, and wealth (ISRA, 2011). Economic activities are not judged by their inherit risks, but by whether they add value and/or create wealth from an islamic perspective. To makes risk management an imperative for a flourishing financial system, wealth protection is being one of the major shariah objectives.
Our group have been assinged to discuss on the topic above but in Islamic Banking perspectives. Therefore, before going any further, let us clarify definition of the Principles of Islamic Banking and clarify what are the elements involve in the Principles of Islamic Banking. Beside, we will also do some comparison of product or services offered by both banks which are conventional and Islamic banking. Apart from that, we will also clarify the problems or challenge faced by the agency which practices the Islamic banking in their agency.
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)