Islam forbids the charging and paying of interest, so many Islamic banks use some sort of fudge to get around 'interest'.
There are many problems to Islamic banking in Pakistan as compared to conventional banking system. There is no legal framework, lack of professionals, no central bank, to educate the people about Islamic banking to increase Islamic finance in the market,innovation and new technology and experience .fiqa problems educated scholars are required to compete conventional banking in Pakistan
In term of risk of investment, Islamic banking provide more security
Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical
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what are the main features of islamic banking and insurance poiicy ?
Yes. As per Islamic laws giving and receiving interest is considered Haram or Unlawful. So, Islamic banking practices were started to provide banking services to customers following the Islamic faith so that they can take up banking without offending their religious sentiments.
There are two major difference between Islamic Banking and Conventional Banking: 1. Conventional banking practices are concerned with "elimination of risk" where as Islamic banks "bear the risk" when involve in any transaction. 2. When Conventional banks involve in transaction with consumer they do not take the liability only get the benefit from consumer in form of interest whereas Islamic banks bear all the liability when involve in transaction with consumer. Getting out any benefit without bearing its liability is declared Haram in Islam.
As per Islamic laws giving and receiving interest is considered Haram or Unlawful. So, Islamic banking practices were started to provide banking services to customers following the Islamic faith so that they can take up banking without offending their religious sentiments.
As per Islamic laws giving and receiving interest is considered Haram or Unlawful. So, Islamic banking practices were started to provide banking services to customers following the Islamic faith so that they can take up banking without offending their religious sentiments.
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The conventional banking system requires the customers to personally present themselves in a banking institution to open an account. Members can open a bank account and transact business using the internet in the electronic banking system.
One OpinionNo, They all work on the principle of Interest which is prohibited in Islam. They give different names to the interest they deal with and so deceive many innocent Muslims into believing that their dealing is without Interest. It is an ironic but true fact that not a single bank works in the true Islamic way.Another OpinionYes, They do work. In conventional banking system the interest is involved in all the transactions. i.e. The investor has no concern whether the business runs into profit or loss, he automatically gets an interest(Riba) in both outcomes at a fixed rate on his capital. whereas in Islamic bank the investor along with profit also bear the loss. There are many differences in Islamic and conventional banking. The Islamic banking is very wide and cover all types of financing & banking needs. well the above mention explanation is just one of the differences.The positive angle towards Islamic bank and its processes is the need of time and economic stability.