Islamic Banking

Islamic Banking INTRODUCTION The basic concept of Islamic banking which is besides known as bear on-free banking is base on basic naive standards with just one briny difference- Muslims are non allowed to arrive at up or arrive engross. This does not mean that stock activities or making a profit are not encouraged, they are but as long as they fag’t involve interest in any form. To do this purpose, fiscal instruments have been introduced by the Islamic financial institutions to compensate these requirements. An suit that can be seen is that equity financing is utilize kinda of debt financing.

Furthermore, instead of natural endowment 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 approximately 5% annually. HISTORY The new-made banking system was introduced into the Muslim countries in the new-fangled 19th century when closely 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: Orderessay

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