 |
Islamic banking & finance institutions would neither pay interest nor earn interest. Bank-depositor relation would be based on the depositor sharing the profit accruing as a result of the bank's profitable use of the deposits pooled together. On the asset side a number of ways were tried to earn profits including partnerships and profit-sharing (mudaraba) with businessmen. Many Islamic banks entered into business directly, buying and selling commodities, land or real estate. Experimentation soon led to what is currently the predominant form of Islamic finance.
In a nutshell, the core idea behind commercial and investment banking, that of financial intermediation, is retained but the ethically repugnant practice of interest on loans is discarded. Within a short period of fifty years, the first half of which was devoted mainly to theory and model building, Islamic banking established itself as an alternative, claiming ethical superiority over conventional banking.
 |
|
The Permissibility And Potential Of Developing Islamic Derivatives As Financial Instruments
IIUM Journal Of Economics And Management, Volume 7 Number 2, 1999.
Mohammad Hashim Kamali
1. Introductory Remarks This paper is presented in two parts. Part one is devoted to a discussion of the potential of developing Islamic financial instruments in the derivatives market of Malaysia. Since this part consists... Read More |
|
|
|
|
|
| |
American trade and Islamic banking in the Israeli occupied territories
- By Wright, JW JR
International Journal of Commerce and Management, VOLUME: 5, Issue No. 4 ,1999, 71
Read
more |
|
Essentials of Successful Islamic Banking
- By Husain Lawai
New Horizon, No31, September 1994, 4-8
Read
more |
|
The Role of Islamic banks in non-Muslim countries
- By M. Umer Chapra
Journal Institute Of Muslim Minority Affairs, Vol 13, Issue No 2, July 1992, pages 295-297
Read
more |
|
Progress And Challenges Of Islamic Banking
- By Abbas Mirakhor
International Monetary Fund
Read
more |
|
Islamic Banking And Finance
- By Dr. Rodney Wilson
Middle East And North Africa, Edition 44, London, Europa Publications, 1985, pg 175-179
Read
more |
|
| |
|
|
|
By pressing
the button you can submit your article
|
| Islamic Investment Opportunities in India
Do we know which country is the most shariah compliant Read
More |
|
 |
|
| Geniza: The Unfolding Truth
Mohammed Imad Ali: In the mirror of history were the earlier generations smarter or are we? Read More
|
|
|
 |
|
| Islamic Discipline of Economics Emerged in late-colonial India
Prof Timur Kuran Read
More |
|
|
|
