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Islamic banking has the same purpose as conventional banking except that it operates in accordance with the rules of Sharia, known as Fiqh al-Muamalat (Islamic rules on transa…ctions). The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of riba´ (interest). Amongst the common Islamic concepts used in Islamic banking are profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah), and leasing (Ijarah). In an Islamic mortgage transaction, instead of loaning the buyer money to purchase the item, a bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while allowing the buyer to pay the bank in installments. However, the fact that it is profit cannot be made explicit and therefore there are no additional penalties for late payment. In order to protect itself against default, the bank asks for strict collateral. The goods or land is registered to the name of the buyer from the start of the transaction. This arrangement is called Murabaha. Another approach is Ijara wa Iqtina, which is similar to real-estate leasing. Islamic banks handle loans for vehicles in a similar way (selling the vehicle at a higher-than-market price to the debtor and then retaining ownership of the vehicle until the loan is paid). There are several other approaches used in business deals. Islamic banks lend their money to companies by issuing floating rate interest loans. The floating rate of interest is pegged to the company's individual rate of return. Thus the bank's profit on the loan is equal to a certain percentage of the company's profits. Once the principal amount of the loan is repaid, the profit-sharing arrangement is concluded. This practice is called Musharaka. Further, Mudaraba is venture capital funding of an entrepreneur who provides labor while financing is provided by the bank so that both profit and risk are shared. Such participatory arrangements between capital and labor reflect the Islamic view that the borrower must not bear all the risk/cost of a failure, resulting in a balanced distribution of income and not allowing lender to monopolize the economy. And finally, Islamic banking is restricted to islamically acceptable deals, which exclude those involving alcohol, pork, gambling, etc. Thus ethical investing is the only acceptable form of investment, and moral purchasing is encouraged. JAIZ International is trying to see that it has establish an Islamic bank in this country, however with the review of Capital adequacy in Nigerian banks, the Islamic bank is delayed. Although the N25B Capital base is one condition for the establishment of an Islamic bank in Nigeria, but we see that there is more to meeting this CBN condition. The most important required conditions are: Managerial commitment, sharia supervisory board, safeguarding Muslim investor's fund and compliance with AAOIFI standards. Managerial commitment: The management must be fully convinced of the concept and fully committed and dedicated to it. Unless the entire management is committed and convinced, the business activities and the enterprise will not be foul free or will not escape irregularities and deviation. Regardless of how strict and stringent fatwa and contracts are, this will not ensure sound practices if there is no one sufficiently SINCERE and committed to implement the principles. • Sharia Supervisory Board: There should be a sharia supervisory board for any Islamic bank, and that board should consist of trustworthy scholars who are highly qualified to issue fatawa on financial transactions. Giving our present situation within the MUSLIMS today how do we constitute the members of the board? Another issue is TRUST from the customers who may use the banks fund, when it comes to profit sharing. Last but not the least is ENLIGHTEMENT, many people even within the Muslim are not aware of how Islamic banks operate. Therefore there is urgent need for a serious enlightenment to the public on operational modalities and requirement of an Islamic bank. Other options that may be considered by JAIZ or even states like SOKOTO, KANO BORNO, KATSINA etc is to establish an ISLAMIC MICRO FINANCE at local government level. The recently approved MICRO FINANCE BANKS can be converted to an Islamic one. In a symposium held at Harvard University on FINANCING THE POOR: Towards Islamic Microfinance some time last year, Nazim Ali has pointed out that Microfinance is not reaching the poorest of the poor, even though this is its purpose, and loans are going to activities unrelated to entrepreneurship. Islamic finance could, in principle and in practice, correct these defects. Robert Annibale, global director of microfinance for Citigroup, shared his insights into both Islamic finance and microfinance. He described microfinance institutions as self-styled "bankers of the poor `, originally rooted in domestic, local markets but increasing expanding into larger markets and offering a broader range of services. He noted that the high operating costs, passed on to the customer in the form of high interest rates, are a hurdle for the poor. He felt that this was where there is potential for Islamic finance to make a difference. Under conventional microfinance, risk is borne by borrowers and rarely held by the institutions. Islamic finance focuses on interest-free methods of providing capital, because the shari'ah holds lending to be a purely charitable exercise, rather than a means of making a profit, Islamic finance is also accustomed to methods of risk-reward sharing between the institution and the borrower. Islamic microfinance banks have grown significantly in countries like Pakistan, Indonesia, Malaysia, and Bangladesh. In fact, Islamic microfinance institutions enjoy greater penetration than traditional commercial banks in Bangladesh. It is high time for us here in Nigeria (particularly in the north because the south have started) to start introducing Islamic microfinance banks which will graduate to a full BANK in future. Requirements for Islamic Banking in Nigeria According to a draft framework released by the Central Bank in March, Ø Islamic banks, referred to as non-interest banks shall be licensed in accordance with the requirements for a new banking license issued by the Central Bank of Nigeria from time to time. Ø Conventional banks operating in Nigeria may offer sharia-compliant products and services through their non-interest banking branches or windows. However, such branches or windows cannot offer conventional banking or interest based products and services. Ø Banks offering non-interest banking products and services shall not include the words "Islamic" as part of their registered or licensed name. This, the draft described as being in line with the provisions of Section 39 (1) of Banks and other Financial Institutions Act (BOFIA) 1991 (as amended). They shall how-ever, be recognized by a uniform logo to be designed and approved by the CBN. The CBN shall require all the banks' signages and promotional materials to carry the logo to facilitate recognition by consumers. Ø The Central Bank shall set up an advisory committee on non-interest bank-ing within the CBN to be called the CBN Shariah Council (CSC), which will be outsourced. The Council shall advise the CBN on Islamic laws and principles for the purposes of regulating non-interest banking business. Ø All non-interest banks are required to maintain a minimum Risk Weighted Asset Ratio of 10.0% or as may be determined by the CBN from time to time for the purpose of calculating its Capital Adequacy Ratio (CAR). Ø All applications must be submitted with the required documents including a Non-refundable application fee of N500, 000.00 and deposit of minimum capital of N25 billion with the Central Bank of Nigeria. Ø Not later than six (6) months after the grant of an Approval In Principle (A.I.P), the promoters of a proposed bank must submit application for the grant of a final banking license to the Director of Banking Supervision with a Non-refundable licensing fee of N5 million in bank draft payable to the CBN and other required documents
Philippine history is a narration of what happened in the past in the Philippines.
Philippine National Bank is the largest bank running today. it was established on 1906.
The monetary system in the Philippines is quite diverse. It has changed over time and has even gone through periods of inflation.
The Philippines has a social security system very much like that of the United States, and its benefits are extensive. It did not firmly begin until the mid-1950s.
The History of Philippine Financial System Financial System is like the heart of the human beings, if it stops working then the person is dead in the same way that if the fi…nancial system stops working, then the economy would collapse. It is inherent in every society the law of supply and demand. There will always be those who have surplus resources and others will have deficit. Financial System is crucial to the allocation of these resources. In the Philippines settings, Financial System is composed of banking institutions and nonbank financial intermediaries, including commercial banks, specialized government banks, thrift banks and rural banks. It is also composed of offshore banking units, building and loan associations, investment and brokerage houses and finance companies. The Bangko Sentral ng Pilipinas and the Securities and Exchange Commission maintained the regulatory and supervisory control. The first credit institution in the Philippines, "The ObrasPias" was started by Father Juan Fernandez de Leon in 1754 and ended in 1820. It was in 1851 that the first Philippine Bank was established, the "Banco Espanol-Filipino de Isabela II". Banco Español-Filipino de Isabela II is now known as Bank of the Philippine Islands. It is the oldest standing bank in the Philippines and in the whole of Southeast Asia. It was established on August 1, 1851 and named after the mother of then Spanish King Alfonso XII. Her mother's name was Isabella. The bank only came into being after 23 years after Spanish Monarch Ferdinand VII decreed that a public bank was to be established in the Spanish colonized country of the Philippines. The bank began its operations in 1852 and was given the honor of being the first to issue paper money. In 1906 "First Agricultural Bank of the Philippines" was established and in 1916 all of its assets and liabilities were transferred to the newly organized Philippine National Bank.
philippine banking today
hmft..............dpat nan mwon
HISTORY -comes from the word "historia" -the discovery, collection, organization and presentation of information about recent and past events. ELEMENTS OF HISTORY: … 1.Historians-people who investigate about history 2.Sources of History-based on materials and documents a.) primary source-testimonies b.)secondary source-copy of past events c.)written-documents, books and write-ups d.)unwritten-fossils, remains, artifacts, language.. etc..... IMPORTANCE OF HISTORY> for knowledge- to learn >skill[s]- investigate, experiment and research >attitude - appreciation and respect
Basically, the Philippine History is written in the Philippine Literature.
Because any stamp are a trademark of a country. So, Philippine stamp designs are inspired with the Philippine History.
the answer is NOTHING
A look back at the history of Philippines banking reveals a developmental role assigned to the banking system and a common pattern of frailty in the face of adverse shocks. Ce…ilings on interest rates, interest rate subsidies, and directed lending were intended to enable the banking system to promote economic growth by being the main source of development finance. While the system itself has displayed a flexibility and willingness to undertake reforms, these actions were often in response to, rather than preventive measures against, crises. Genuine reforms have usually come after, not before, crises and in the transition from crisis to stability (and one regulatory regime to a stronger one), the restoration of confidence in financial markets was agonizingly slow. The ensuing contraction in credit and intermediation has usually dragged down the rest of the economy. The occurrence of the Asian financial crisis has led to a rethinking of how best to strengthen banking systems so as to prevent banking crises, or to reduce banking system vulnerability to crises. There is apparently a greater appreciation for the idea that regulation and supervision must now increasingly focus on the less traditional and conventional methods. The original impetus for reform in the 1950s and1960s was not the need to respond to crises, but the rapid growth and increasing fragmentation of the banking system. The increasing diversity of financial institutions and services challenged the ability of the central bank to adequately regulate them. The undeveloped capital adequacy standards for solvency were relevant, but required very simple and rudimentary implementation mechanisms; liquidity was managed by imposing the reserve requirement; and supervision and examination requirements were addressed through simple reporting systems. In 1972-1973, a Joint International Monetary Fund-Central Bank (IMF-CB) Banking Survey Commission recommended that several amendments be made to the General Banking Act and the Central Bank Act. These amendments were meant to realign regulation by function rather than by type of bank.consolidate central bank authority over banks.Redefine the central bank's responsibilities to exclude the promotion of economic growth andimpose restrictions on entry into the banking system, with concomitant efforts to improve the efficiency of existing banks. Along with the increasing dynamism of the financial sector and the need for more responsive financial structures to address financing needs, the moves toward rationalizing the central bank's supervision over the banking sector led to increasing pressure to adopt more sophisticated prudential regulatory mechanisms and structures. While banking institutions remained the dominant financial intermediaries, nonbank private and quasi-public financial institutions emerged, constituting an alternative means of intermediation. In 2004, the banking sector grew by 8.3%, its fastest growth rate in the last seven years. The sector's growth explains most of the impressive growth of the financial services sector of 8.4%in 2004. In the past two years, banks expanded by an average of 7.5%, a recovery from its sluggish average growth rate of 1.7% between1998 and 2002 after the Asian financial crisis. Despite its growth in recent years, the financial health of the banking sector remains volatile due to the high levels of non-performing assets in the balance sheets of banks, which have resulted in a slowdown in bank lending. Further, the profitability of Philippines' banks remains inferior and lags behind other Asian banks. Considering the foregoing, it may be argued therefore that while the sector posted positive growth rates, much remains to be done to strengthen the banks. by: maganto
Rodriguez Bank is the first bank in Philippines founded by Francisco Rodriguez -KnowledgeJoel
There are several branches of PNB in Makati City. One particular is located in gil Puyat Avenue while another is in Burgundy Towers in Makati.
The Philippine literature is part of the Philippine history such that the literature is part and parcel of what the history of the Philippines is. It is in literature that… the old and new era meet and even emerge into unforgettable writings, poems, songs and sonnets that speaks of what history the Filipinos have gone through.