Islamic Banking

Islamic Banking INTRODUCTION The basic concept of Islamic banking which is in addition known as engagement-free banking is based on basic true standards with just one main difference- Muslims are not allowed to arrive up or receive interest. This does not mean that billet activities or making a profit are not encouraged, they are but as long as they male parent’t involve interest in any form. To satiate this purpose, fiscal instruments have been introduced by the Islamic financial institutions to adjoin these requirements. An suit that can be seen is that equity financing is employ kinda of debt financing.

Furthermore, instead of giving a fixed interest ramble on the savings account, Islamic banks offer a pct of the banks profit, as a return on deposits and this is just about 5% annually. HISTORY The modern banking system was introduced into the Muslim countries in the new-fangled 19th century when most of these countries were performing that well economically as well as politic...If you want to get a full essay, order it on our website: BestEssayCheap.com

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