Islamic Banking

Islamic Banking INTRODUCTION The basic concept of Islamic banking which is as well as known as entertain-free banking is based on basic well(p) standards with just one main difference- Muslims are non allowed to determine up or receive interest. This does not mean that communication channel activities or making a profit are not encouraged, they are but as long as they cod’t involve interest in any form. To bring about this purpose, fiscal instruments have been introduced by the Islamic financial institutions to execute these requirements. An suit that can be seen is that equity financing is utilise 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 some 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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