Banking & Finance » Overview

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.

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Prospects For An Islamic Derivatives Market In Malaysia
An earlier version of this paper was presented to the International Conference on Islamic Investment & Securitisation, Kuala Lumpur, 21-22 April 1998Thunderbird International Business Review, Vol. 41 (4/5) 523-540 (July-October 1999)
Dr. Muhammed Hashim Kamali
EXECUTIVE SUMMARY

If one were to single out an area of derivative trading which can find support in the relevant evidence of Shari'ah, it would unquestionably be the commodity futures. This is because futures and options that... Read More

A Profile of Riba-Free Banking
- By Mohammed Mohsin
Monetary and Fiscal Economics of Islam
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The Legal Aspects of Marketing for Islamic Banking Services
- By Mohammed Ismail Bin Mohammed Shariff

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Islamic Banking: Some Unsettled Issues of Stability And Growth
- By M.S.Ibrahim, A.H.M. Bashir, and A.F.Darrat
Journal of Objective Studies Vol. 5 No. 1 January 1993/1413-H
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Practice And Prospects Of Musharaka Financing For Small Enterprises In Pakistan
- By Mohammed Ramzan Akhtar
Journal of Islamic Banking and Finance
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Islamic Banking: Achievements and Obstructions in Focus
- By Dr. Ahmed El-Naggar
Dr. Ahmed El-Naggar, the Secretary Gersral of the International Association of Islamic Banks, discusses some of the obstacles impeding the march of Islamic banks In the second of a series of four articles...
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Islamic Investment Opportunities in India

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ISLAMIC BONDS (SUKUK): ITS INTRODUCTION AND APPLICATION

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Riba in Islam

The Foundations of Islamic Finance

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