Is Islamic Finance an Islamic Finance? Islamic Finance is of course from Muslim countries, although some traditional and western banks now offer some Islamic products. In these cases, the term “Islamic Window” is used, where all activity related to Islamic finance in a conventional bank is confined to avoid any risk of making the transaction […]
How does Islamic Financing Work | Prohibitions in Islamic Finance
Islamic Financing System Islamic financing respects a number of principles dictated by the Quran, the Sunna (prophetic tradition) or Fiqh (Islamic jurisprudence). The main prohibitions or restrictions of the Shari a include for Islamic financing system are:- Prohibitions in Islamic Finance System The interest (Riba) The prohibition of riba is a fundamental rule of Islam. […]
Islamic Financing Principles | Basic Concepts to Remember
Islamic Financing Principles When it comes to know the basic Islamic financing principles, then remember that it is strictly forbidden for a lender to realize a financial profit resulting from late payment penalties paid by a debtor in default of payment. On the other hand, it is permissible (and accepted by a number of scholars) […]
Islamic Finance Definition | Basic Concepts | Islamic Financing in the World
Islamic Finance Definition There is no single definition of Islamic Finance but it is widely used today to refer to financial and commercial activities that respect the principles of Islamic law and jurisprudence, more commonly referred to as Shari a “. Respect for such principles allows investing and making profits in accordance with the rules […]
Islamic Banking Definition | Basic Concepts of Islamic Banking
Islamic Banking Definition The fundamental principle of Islamic banking is based on the Bank’s direct involvement in transactions financed by it. The remuneration it receives is justified either by its status as co-owner, to the results of the project financed (losses or profits) in the case of a Moudharaba or a Musharaka, or by the […]