Comparison between Islamic Banking and Conventional Banking Introduction As far as commercial banking is referred‚ there are two main differences from the traditional approaches (conventional or Islamic)‚ and these are very significant evolutions. One is that this method believes commercial banks as serving providers‚ rather of like “money lenders” (conventional) or “investing-collaborators” (Islamic). Interest-free banking is inferred as a sub-model; the conventional banking is considered
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Vivek S. Kanojiya (78) 1 INTRODUCTION TO ISLAMIC BANKING Islamic Banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Shariah) .Shariah prohibits Riba. . i.e. interest free business. It is based on the Islamic economic system. It is not restricted to Muslims only. 2 EVOLUTION OF ISLAMIC BANKING Islamic banks are seen to involve themselves as financial intermediaries and investment oriented institutions in bringing
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A Comparative Study of Islamic Banking in Pakistan: Proposing and Testing a Model BY Ashfaq Ahmad PhD Scholar 117/FUIMCS/Ph.D(MS)-2006 FACULTY OF MANAGEMENT SCIENCES 2009 A Comparative Study of Islamic Banking in Pakistan: Proposing and Testing a Model A thesis submitted to the FUIEMS Foundation University‚ Islamabad In partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY In MANAGEMENT SCIENCES BY Ashfaq Ahmad PhD Scholar FACULTY OF MANAGEMENT SCIENCES 2009 APPROVAL
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HISTORY OF CONVENTIONAL BANKING Around 2000 BC‚ banking was initiated by farmers and traders in Babylonia whereby‚ grain loans were made. Later‚ this new mode of ‘trading’ spread to Greece. Some developments were emerging as deposits and money exchange were initiated. Modern banking took birth in Italy in the 14th century and the most famous conventional bank was Medici Bank. The bank system spread to Europe‚ in Amsterdam in the 16th century where much innovation took place‚ in London in the 17th
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Journal of Banking & Finance 37 (2013) 433–447 Contents lists available at SciVerse ScienceDirect Journal of Banking & Finance journal homepage: www.elsevier.com/locate/jbf Islamic vs. conventional banking: Business model‚ efficiency and stability Thorsten Beck a‚⇑‚ Asli Demirgüç-Kunt b‚ Ouarda Merrouche c a CentER‚ Department of Economics‚ Tilburg University and CEPR‚ The Netherlands World Bank‚ Development Research Group‚ United States c European Securities and Markets Authority
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Introduction Islamic banking is banking based on Islamic law (Shariah). It follows the Shariah‚ called fiqh muamalat (Islamic rules on transactions). The rules and practices of fiqh muamalat came from the Quran and the Sunnah‚ and other secondary sources of Islamic law such as opinions collectively agreed among Shariah scholars (ijma’)‚ analogy (qiyas) and personal reasoning (ijtihad). The credibility of the Islamic banking activities is highly dependent on the credibility of the Shariah advisers
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What are the impacts of the global financial crisis on Islamic banking system and how Islamic bank spared from the crisis? Accounting Master ’s thesis Salad Addawe 2012 Department of Accounting Aalto University School of Economics i What are the impacts of the global financial crisis on Islamic banking system and how Islamic bank spared from the crisis? Master’s Thesis Salad Araye Addawe Winter 2012 Accounting Approved in the Department of
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Islamic Banking Analysis Haythem Joudeh February 22‚ 2013 Abstract This goal of this research is to find out if Islamic Banking is a better alternative to the Western‚ Conventional Banking. The information provided will reveal various Islamic Banking principles that would have prevented previous major economic crises and if applied globally today could prevent a major economic collapse. Islamic Banking is banking system based on Shari ’a (Islamic) Law on which it developed its unique
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Reading Material Concepts and definitions of various banking terminology. All the information is collected using various free web-sites on internet for the purpose of enhancing knowledge of the participants in the field of banking. 1 Banks in the economy Role in the money supply A bank raises funds by attracting deposits‚ borrowing money in the inter-bank market‚ or issuing financial instruments in the money market or a capital market. The bank then lends out most of these funds to
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Introduction Islamic Banking in Bangladesh There are currently seven commercial banks operating under Islamic principles. They are: 1. Islami Bank Bangladesh Limited‚ 2. Al-Arafah Bank Ltd. 3. Social Investment Bank Ltd‚ 4. Exim Bank Ltd‚ 5. Shahjalal Islami Bank Ltd. 6. Icb Islamic Bank Ltd 7. First security Islami Bank Ltd. HISTORICAL BACKGROUND First Security Islami Bank Limited (FSIBL) was incorporated in Bangladesh on 29 August 1999as a banking company under
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