Difference Between Commercial Bank and Islamic Bank

3194 Words Nov 24th, 2011 13 Pages
Product Differentiation between Islamic Banking and Conventional Banking

Submitted to:
Quazi Sagota Samina
Senior Lecturer,
Department of Business Administration.
East West University, Dhaka.

Submitted by:
Name ID
Arafat Rauf 2009-2-10-345

FIN 380
Section: 2
Group: 10
Fall: 2011

Date of Submission: 23rd October 2011

Table of Content
Executive Summary 3
Objective of the Study 3
Limitation of the Study 3
Analysis 4
Bibliography 12

Executive Summary

Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia’h) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called riba. Generally,
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When a client gets into difficulty, conventional banks get worried about their money, and make all efforts to recover the money, including taking over the collateral. In conventional banks charging interest does not stop unless specific exception is made to a particular defaulted loan. Interest charged on a loan can be multiple of the principal, depending on the length of the loan period.
(Website of scribd.com) Uttara bank (UBL)
UBL is one of the largest private banks in Bangladesh. It operates through 211 fully computerized branches ensuring best possible and fastest services to its valued clients. The bank has more than 600 foreign correspondents worldwide. Total numbers of employees are nearly 3,562. The Board of Directors consists of 13 members. The bank is headed by the Managing Director who is the Chief Executive Officer. The Head Office is located at Bank’s own 18-storied building at Motijheel, the commercial center of the capital, Dhaka.
Special loan scheme
Consumer credit
Uttaran Consumer-Credit Scheme :
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UBL started Uttaran Consumers Credit Scheme from 1996.UBL offers opportunity of Financial assistance for -
• Motor cycle/car- New or re-conditioned.
• Refrigerator/ Deep Freeze.
• Television/ VCR /VCP/VCD
• Radio/ Two-in-one/ Three – in – one
• Air-Conditioner/ Water Cooler/ Water Pump
• Washing Machine.
• Personal Computer/ UPS/ Printer/ Type writer
• Sewing Machine.
• House hold furniture-
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