The Islamic Banking Model ... !

ADNANE فـي 18:33

The origin of Islamic banking dates to the terribly starting of Islam within the seventh century. The prophet Muhammad's 1st mate, Khadija, was a businessperson, ANd he acted as an agent for her business, exploitationseveral of an equivalent principles employed in up to date Islamic banking. within the Middle Ages, trade and endeavour within the Muslim world relied on Islamic banking principles, and these concepts unfold throughout European nation, the Mediterranean and also the Baltic States, arguably providing a number of the premise for western banking principles. within the Sixties to the Seventies, Islamic banking resurfaced within the times.

This banking industry is predicated on the principles of sharia law, conjointly stated as law, and radio-controlled by Islamic political economy. the 2 basic principles square measure the sharing of profit and loss and also the prohibition of the gathering and payment of interest by lenders and investors. Islamic banks neither charge nor pay interest in an exceedingly standard manner wherever the payment of interest is readybeforehand and viewed because the planned worth of credit or the reward for cash deposited. sharia law accepts the capital reward for loan suppliers solely on a profit- and loss-sharing basis, acting on the principle of variable come back connected to the particular productivity and performances of the supported project and also the real economy. Another necessary side is its entrepreneurial feature. The system is concentrated not solely on moneyenlargement however conjointly on physical enlargement of economic production and services. In observe, there's a better focused on investment activities like equity funding, trade funding and property investments. Since this technique of banking is grounded in Islamic principles, all the undertakings of the banks follow Islamic morals. Therefore, it might be aforesaid that money transactions among Islamic banking square measure a culturally distinct style of moral investment. for instance, investments involving alcohol, gambling, pork, etc. square measure prohibited.

For the last four decades, the Islamic banking industry has practised an amazing evolution from atiny low niche visible solely in Islamic countries to a profitable, dynamic and resilient challenger at a world level. Their size round the world was calculable to be near $850 billion at the top of 2008 and is anticipated to grow by around fifteen % annually. whereas system of banking remains the most part of the Islamic financial set-up, the opposite parts, like Takaful (Islamic insurance companies), mutual funds and Sukuk (Islamic bonds and money certificates), have witnessed robust world growth, too. Per a reliable estimate, the Islamic money tradecurrently amounts to over $1 trillion. Moreover, the chance for growth during this sector is wide. it's calculable that the system might double in size among a decade if the past performances square measure continued within the future.

صاحب الموقع : عدنان بنسي