Islamic Banking

Islamic banking has been defined as banking in consonance with the ethos and c be for system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow fancy denoting a number of banking instruments or operations, which revoke interest. Islamic banking, the more than general term is expected not only to block interest-based transactions, prohibited in the Islamic Shariah, but also to avoid unethical practices and participate actively in achieving the goals and objectives of an Islamic economy.
pursual are the main modes of Islamic banking and finance:

MURABAHA
Literally it agency a sale on mutually agreed profit. Technically, it is a contract of sale in which the seller declares his cost and profit. Islamic banks have adopted this as a mode of financing. As a financing technique, it involves a request by the customer to the bank to purchase certain goods for him. The bank does that for a distinct profit over the cost, which is stipulated in advance.

IJARAH
Ijarah is a contract of a known and proposed usufruct against a specified and lawful return or consideration for the service or return for the benefit proposed to be taken, or for the effort or work proposed to be expended.



In other words, Ijarah or leasing is the transfer of usufruct for a consideration which is rip in instance of hiring of assets or things and wage in case of hiring of persons.

IJARAH-WAL-IQTINA
A contract under which an Islamic bank provides equipment, perplex or other assets to the client against an agreed rental in concert with a unilateral undertaking by the bank or the client that at the end of the lease period, the ownership in the asset would be transferred to the lessee. The undertaking or the promise does not become an integral part of the lease contract to make it conditional. The rentals as well as the purchase price are fixed in such manner that the bank gets...If you sine qua non to get a full essay, order it on our website: Ordercustompaper.com



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