Islamic Banking Practices Compared to Conventional Banking Practices

A rule making body issues authorative shari’a auditing standards for all Islamic banks and other Islamic businesses and it will be the most effective way to eliminate problems within the Islamic economy. The most effort to develop a body of consistent standards for shari’a audits has been undertaken by

The film and novel of To Kill a Mockingbird complement each other in many ways due to their similarities, but the book can accomplish things that the movie can’t due to it’s ability to tell. The book is written in a narrated voice, making it hard to tell the entire story through a film. The thoughts and feelings of the characters can’t always be felt and understanded through a film because of its limited time allotted, but through a book you are able to know and interpret everything. There are missing parts of the plot, along with many other differences of the story because of this. While the book is very similar to the movie and vis versa, there are many differences.

Social inequality refers to socially-defined categories of persons, and there is a lot of it in to kill a mockingbird or TKM, whether it was the color of a person's skin, like Tom Robinson, or where and how they lived, like the Radley’s and their strangeness or the Ewell’s dump of a property. The idea of a person’s skin making them hostile or inferior to others is because of ignorance and assumptions. People don’t know very much about other people, and they usually immediately assume that that person is bad. There are also times when a person is judged by the clothes that they wear or how they speak, as in first impressions, but you never know a person from seeing them, you have to know more, which is from ignorance.

“He was influence by his father to start a career in real estate development” (Bio), in 1971 his father gave him the control of his company, which he later changed the name to Trump Organization. He moved to Manhattan, and he started making connections with influential people. He soon became involved in large building projects, and he started earning high profits. He leased a site on 5th avenue in 1979 for 200 million dollars. This luxurious building has pink marble, and an 80 foot tall waterfall which attracted celebrities and retail stores, and it brought him a ton of attention. He purchased a Hilton casino hotel in Atlantic City, he also bought Holiday Inn and renamed it to “Trump Plaza Hotel and Casino”. In 1990 with the decline of real

* The author is Research Adviser at the Islamic Research and Training Institute (IRTI) of the Islamic Development Bank (IDB). This paper is a revised and updated version of the keynote Forum lecture delivered by him at the inaugural session of the Eighth Harvard University Forum on Islamic Finance held on 19-20 April 2008 in the Harvard Law School. The views expressed in this paper are his own and do not

“Tawasul” Provide OMAN ARAB BANK target customers with a service that meet their wants and needs in order to build profitable relationship with them.

The prosperity and peace of a society much or less depends on its economy. While for the smooth running of both, there are several instructions in Islamic Shariah and allows what is right and forbids what is wrong. When we talk about financial issues, Islamic Shariah strictly condemns Riba. The question may arise why Islam prohibits Riba? While it was already in practice before the advent of Islam and still it is a part of different economic systems throughout the world. It is simply because Islam gives respect to human beings and condemns all the attempts that are harmful and disgraceful for humanity. Therefore, Riba is not only forbidden in Islam but economic experts are also in search of its substitute. Since borrowing on interest rate creates several issues including: less efficient allocation of resources, indebtedness, unemployment and economic instability. While in society it causes injustices, inequity, poverty and imbalance etc. In this paper we are discussing how Riba causes imbalance in the society and instead Riba what Islam demands from its followers.

This study is about Investment Management System of Al-Arafah Islami Bank Limited (AIBL), Investments are operating by this bank with Islami sharia formula as no interest payment system but give profit from client deposit amount. Investment practice consists of some stage like Selection of the client, Application stage, Processing and appraisal, Sanctioning stage, Documentation stage, Disbursement stage, Monitoring & Recovery stage. It has been found that the investment process is lengthy and tiresome for the clients. AIBL investment process should become easier and should increase their investment ratio by reducing lengthy time process of investment and reducing required return on investment. It should also increase

They also highlighted that the conventional banks in Sweden will face problem to retain their Muslim customer if Islamic financial institutions such as Islamic banks who offer shari’ah compliance product and services come to the existence. This indicated that, how eager they are to get a shari’ah compliance banks that can save them dealing with conventional banks.

The second type of banking in Saudi Arabia is commercial or conventional banks as any country which is rely on non participation of risk. In fact, conventional banks in Saudi Arabia are more likely to produce products that are acceptable and suitable of Islamic banking or Islamic products because it is attracted the majority of customers (International Business Publication 2011).

Islamic accounting includes an ethical and moral code of conduct, Sharia. Although Islamic accounting does not have a set form of rules like conventional accounting there are three general principles which should be incorporated: “truthfulness, justice, and honesty” (Badshah). The process focuses on analyzing transactions both economically and socially to ensure no harm is brought to society. Sharia prohibits any sort of riba, more commonly known as interest, in Islamic accounting. This method also introduces profit and risk sharing in which both the bank and investor benefit and lose simultaneously. This idea of both the investor and the bank sharing gains and losses is very distinct and and as Mulcahy said, “This is probably the key distinguisher of Islamic accounting and conventional accounting as we know it. I think this is

Research finding: Shariah compliance, Quality and Attractiveness of Offerings, Friendliness of bank personnel, Cost and benefit analysis and Awareness about Islamic banking.

The Islamic banking industry has come a long way in issues of corporate governance. However, Islamic banks need to be at the forefront of pioneering innovative, impactful, and far-reaching social responsibility and corporate governance practices since for starters, they are faith-based institutions. Islamic banks need to stop resting on their laurels and stop playing catch up in these domains. Moreover, Islamic banks need to deal conclusively with the array of challenges facing their Shari’ah corporate governance endeavors so as to meet their objectives in a more effective manner.

The Central Bank of the UAE was established in 1980 (Crystal & Peterson,2017). It is the UAE’s highest financial regulator. The Central Bank works with the state by directing changes in Monetary, Banking, and Credit-based policies appropriately. It implements those policies in accordance to the state’s current Financial and Economic needs. Moreover, the Central Bank aims to stabilize the economy and the current exchange rate by maintaining gold and other foreign currency reserves. The UAE Central Bank, “prohibits lending an amount greater than 7 percent of a bank's capital base to any single customer” (United Arab Emirates - Banking System, n.d). Furthermore, Islamic banking in the UAE has shown a boundless level of progress due to no interest fees per Sharia Law. The UAE Islamic Financial Sector was estimated to be worth around 127 Billion US Dollars in 2014, it is also the third largest Islamic market by value after Saudi Arabia and Malaysia (John,2015). In November 2011, the Central Bank introduced the IBAN system, its main purpose was to ease the process of automatic money transfers and improve the accuracy and speed of payment transactions (Standard Chartered Bank of UAE, n.d).

The profit and loss account is one of the annual accounts and main financial statements. It contains figures on the amount of profit or loss the business made over a financial year. It will also contain information on how the profit or loss arose. It’s purpose is to show how profitable the business is (If revenue exceeds expenses) or how unprofitable it is (if expenses exceed revenue). For this reason they are particularly important for generally showing an overview of the business success level during the period shown. They are also important because banks usually like to see a profit and loss account before lending to a business. The profit and loss account is made use of by internal stakeholders such as managers and managing directors for making operational decisions and planning future budgets for example. It is also particularly useful to external stakeholders such as shareholders and potential investors, this is because they must make most of their investment decisions on the figures that businesses publish and so the account allows them to compare the profitability and risk of different investments. Investment appraisal techniques like ROCE can be used with the profit and loss account to help compare the businesses to others.