Pillars of Islamic Banking and Finance
Pillars of Islamic Banking & Finance
By: Munawwar Ali Kartio
Research Scholar MBA (Finance), DAIBP, LLB, PGD (Islamic Banking & Finance)
Under Supervision of
Prof Dr. Iqbal Ahmed Panhawar
Pro-Vice Chancellor
UNIVERSITY OF SINDH – JAMSHORO (MirpurKhas Campus)
بسم الله الرحمن الرحيم
PILLARS OF ISLAMIC BANKING & FINANCE
Abstract
Islam emphasis justice and equity in all spheres of human society and refrains from all sorts of exploitation in financial dealings. It encourages active participation in economic activity instead of earning money on utilization of money. Islam allows freedom in economic activities with certain limitations to differentiate between Halaal & Haraam. Islamic finance is based on the principles and rules laid down by Islamic Shariah. In Islamic financing system there is greater return because there is a greater risk. Islamic financial institute invest and get the profit not the interest.
Introduction
Being a complete code of life Islam realizes importance of justice, equity and human welfare in society, It is not mere a relationship between believer and Allah, restricted to worship only but it deals and guides every aspect of human life. Justice and equity require a set of laws or ethical values, which everyone accepts with heart & soul and complies with loyally. The Islamic financial system promotes justice in a manner that on the one hand the financier has to share in the risk so as not to transfer the entire burden of losses (if any) to the entrepreneur/user of funds and the other is that an equitable share of financial resources mobilized by financial institutions should become available to the poor to eliminate /reduce poverty, inequalities of income and wealth by providing equal opportunities to active participation in economic activity.
Islamic Economic System is based on following pillars
1. Belief in Divine Guidance:
It is the firm belief of every Muslim that commands given by Divine revelations
By: Munawwar Ali Kartio
Research Scholar MBA (Finance), DAIBP, LLB, PGD (Islamic Banking & Finance)
Under Supervision of
Prof Dr. Iqbal Ahmed Panhawar
Pro-Vice Chancellor
UNIVERSITY OF SINDH – JAMSHORO (MirpurKhas Campus)
بسم الله الرحمن الرحيم
PILLARS OF ISLAMIC BANKING & FINANCE
Abstract
Islam emphasis justice and equity in all spheres of human society and refrains from all sorts of exploitation in financial dealings. It encourages active participation in economic activity instead of earning money on utilization of money. Islam allows freedom in economic activities with certain limitations to differentiate between Halaal & Haraam. Islamic finance is based on the principles and rules laid down by Islamic Shariah. In Islamic financing system there is greater return because there is a greater risk. Islamic financial institute invest and get the profit not the interest.
Introduction
Being a complete code of life Islam realizes importance of justice, equity and human welfare in society, It is not mere a relationship between believer and Allah, restricted to worship only but it deals and guides every aspect of human life. Justice and equity require a set of laws or ethical values, which everyone accepts with heart & soul and complies with loyally. The Islamic financial system promotes justice in a manner that on the one hand the financier has to share in the risk so as not to transfer the entire burden of losses (if any) to the entrepreneur/user of funds and the other is that an equitable share of financial resources mobilized by financial institutions should become available to the poor to eliminate /reduce poverty, inequalities of income and wealth by providing equal opportunities to active participation in economic activity.
Islamic Economic System is based on following pillars
1. Belief in Divine Guidance:
It is the firm belief of every Muslim that commands given by Divine revelations
References: 1. Interest free Banking - Institute of Bankers Pakistan Karachi 2. Islamic Finance - Muhammad Taqi Usmani 3. Islamic Banking - Shahid Hussain Siddiqui 4. The Economic System of Islam - Hafiz ur Rehman 5. Our Socio Economic Order -Mufti Muhammad Taqi Usmani 6. Distribution of Wealth - Mufti Muhammad Shafi 7. Principles of Islamic financing -Manzer Kahf , Tariqullah Khan 8. What is Islamic Economics -Muhammad Umar Chapra 9. Fundamentals of Islamic Economic System -Muhammad Sharif Chaudhry 10.Islamic Banking State of the Art -Ziauddin Ahmed