Islamic Banking

Islamic Banking INTRODUCTION The basic concept of Islamic banking which is likewise known as divert-free banking is based on basic ripe standards with just one main difference- Muslims are not allowed to quarter up or receive interest. This does not mean that assembly line activities or making a profit are not encouraged, they are but as long as they beginner’t involve interest in any form. To sate this purpose, fiscal instruments have been introduced by the Islamic financial institutions to gather 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 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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