banking - an islamic perspective

BANKING: AN ISLAMIC PERSPECTIVE A PRESENTATION BY: Dr. Serajul Haque Faizi Research Associate, Department of Chemistry IIT Kanpur Starting in the Name of Allah, The Most Beneficent, The Most Merciful Honorable Guest, Participants, Ladies & Gentlemen. Thank you for giving me the honor of presenting an overview of Islamic Banking OUTLINE Islamic Banking Products And Services Difference Between Islamic And Conventional Banking Principles of Islamic banking Why Islamic Banking ISLAM AQIDAH (Belief) SHARIAH Ibadat (man to Allah) Muamalat (man to man) POLITICAL ACTIVITIES ECONOMIC AVTIVITIES BANKING & FINANCIAL ACTIVITIES SOCIAL ACTIVITIES AKHLAK [...]... without any restrictions Difference Between Islamic And Conventional Banking Islamic Banking Conventional Banking 4) Creditor-Debtor 4) Partners, relationship investor and traders, buyer or seller relationship Difference Between Islamic And Conventional Banking Islamic Banking Conventional Banking 5) Based on money 5) Encourage trading Money is a asset-based medium of financing and exchange and not... Globally the Islamic financial industry comprises 430 Islamic banks and financial institutions and around 191 conventional banks with Islamic banking windows operating in more than 75 countries Difference Between Islamic And Conventional Banking Islamic Banking 1) Functions and operations are based on Sharia’h principles Conventional Banking 1)Functions and operations are based on fully man made principles... or Conventional Banking ISLAMIC BANKING PRODUCTS AND SERVICES Currently available Islamic Banking Products and services are a) Partnership based modes of financing Musharaka Finance, Mudaraba Finance, c) Trade based modes of financing Murabaha Finance, Salam finance e) Rental based modes of financing Ijarah Finance, Diminishing Musharaka Finance Asset Classes in Islamic Finance Sukuk Islamic Structured... banking services through the "Islamic Banking Scheme" Islamic Banks Commercial Banks Merchant Banks Discount Houses Development Financial Institutions Offering Islamic Banking Services Islamic Development Bank (IDB) Group 1975 Islamic Development Bank (IDB) Foster the economic development and social progress of MCs and Muslim communities 1981 Islamic Research & Training Institute (IRTI) 1999 2008 Islamic. .. Instrument Islamic Financing Real Estates (IREITs) Asset Classes in Islamic Finance Islamic Equities (unit trust, index funds etc.) Islamic Private Equity Takaful Islamic ETFs Islamic Hedge Funds List of Financial Institutions Offering Islamic Banking Services (CBB, 2008) • • • • • The Islamic banks are not the only financial institutions involved in Islamic banking Other financial institutions also offer Islamic. .. Difference Between Islamic And Conventional Banking Islamic Banking Conventional Banking 2) Promote risksharing between 2) Investor is provider of capital assured of pre(investor) and user of determined rate of funds (entrepreneurs) interest Difference Between Islamic And Conventional Banking Islamic Banking 3) Aim at maximising profit but subject to Sharia'h restrictions Conventional Banking 3) Aim at... In Islamic banking, all transactions are asset-based that gives rise to the economic activity  Globally, the Islamic banking is growing 50% faster than the overall banking sector  The size of Islamic banking industry has grown to $1.63 Trillion with the annual growth rate of more than 20% The size is forecasted to reach US$1.8 Trillion in 2013 and beyond the milestone of... commodity trading and purchase is prohibited in Islam Difference Between Islamic And Conventional Banking Islamic Banking Conventional Banking 6) No right of profit 6) It is almost risk if there is no risk involved The profit and loss sharing depositor may lose money in case of loss free banking and depositor has no risk of losing its money because interest is guaranteed Which One is Better?? Islamic or... International Islamic Trade Financing Corporation (ITFC) 1994 Undertake applied & basic research in Islamic Economics and Finance Islamic Corporation for Insurance of Investment & Export Credit (ICIEC) Provide Shariahcompatible export credit insurance, political risk insurance, technical assistance Promote development of private sector development Shari’ah Compliance Promote and enhances intra-trade and trade... Shari’ah Compliance Promote and enhances intra-trade and trade cooperation through trade finance and promotion programs The development of the Islamic finance industry has been fuelled by pioneering institutions and industry building organisations Riba Free Islamic Banking “ To each among you, We have prescribed a law and a clear way If Allâh willed, He would have made you one nation, but that (He) may test . Conventional Banking Principles of Islamic banking Why Islamic Banking ISLAM AQIDAH (Belief) SHARIAH Ibadat (man to Allah) Muamalat (man to man) POLITICAL ACTIVITIES ECONOMIC AVTIVITIES BANKING. the Islamic financial industry comprises 430 Islamic banks and financial institutions and around 191 conventional banks with Islamic banking windows operating in more than 75 countries Islamic. Participants, Ladies & Gentlemen. Thank you for giving me the honor of presenting an overview of Islamic Banking OUTLINE Islamic Banking Products And Services Difference Between Islamic And