The Establishment Of Islamic Banking

MAIL (Mate Australian Islamic Loans) is an organisation created with young Australian Muslims in mind. It aims to help young Australians get Islamic compliant home loans and car financing without having to do any complicated research about the rules and regulations that allow loans to be Sharia compliant in Australia – this means that they can be assured that they can borrow the money they need without contravening their religious principles.

Becoming an expert in Islamic economics and finance field is one of my long-term goals in life. I started to organize and made a plan towards achieving that dream since senior high school. The concern towards Islamic economics and finance concept, and its application for society and the country began when I was reading a book entitled Islamic banking-theory and practice. After finishing reading the book, my interest in Islamic economic and finance topics rose and strengthen my own determination to become the expert of Islamic economics and finance. The main principle of Islamic economics and finance which offers the just and ethics in economic activity, poverty alleviation through income distribution mechanism, and prevention of economic and

This is a multilateral financing organization. It has its headquarters in Jeddah, Saudi Arabia. Islamic Development Bank was formed in the year 1973 by the Finance Ministers of member states. It was formed during the Organization of Islamic Cooperation (formerly known as Organization of the Islamic Conference). The King of Saudi Arabia (Faisal) supported the creation of this organization. The Islamic Development Bank started operating on October 20th, 1975 (Schiavone, 2015). Currently, the bank has 56 member states who are the shareholders of the bank. By the year 2013, the bank decided to triple its authorized capital to $150 billion. This move was meant to better serve non-member countries and Muslim in members. The Islamic Development Bank has a good credit rating of AAA, which it got from Fitch and Standards & Moody’s. A large portion of the paid-up capital of the bank is held by Saudi Arabia. It holds approximately one-quarter of the capital. This bank also plays the role of observer at the United Nations General Assembly.

In most jurisdictions where Islamic banks operate, they have to compete with conventional banks involved in interest-based borrowing and lending. The legal framework governing the licensing of banks and their regulation was designed primarily for conventional institu¬tions, not least as there were no Islamic banks in existence in most cases when the banking laws were drafted. Three choices therefore arise: firstly, whether Islamic banks can be accommodated within existing legal provision, whether the existing banking legislation requires amendment or, more radically, whether new legislation is necessary.

The banking sector in Bangladesh is included in the financial sector which is small and underdeveloped. Rubel and Kee (2013) stated that the well-being of an employee is not considered as a priority, so it was determined that employee engagement would be one of the ways to develop the banking sector. Transformational leadership

The adoption of Islamic business practices by organizations: Why, How and what are the performance outcomes

Forty years ago, the Islamic banking industry was created, on a modest scale, to fill a gap in a banking system that was not listening to the fervent Muslim believers. Morocco has been following the same development in offering Islamic finance services to its citizens through Islamic windows in conventional banks. In parallel to this development of the Islamic financial industry in Morocco, it seems very crucial to evaluate critically based on Maliki law school the previous experience of Islamic windows in conventional banks. Taking into considerations, the differences between schools in the interpretation and implementation of Islamic law in economy life, the objective of this paper was to critically analysis the practice of Islamic banks in Morocco. This paper aimed at analyzing the characteristics of different schools of Islamic law and how this would affect Islamic banking. The final aim of this paper was to highlight the importance of jurisprudence/ new interpretations in developing Islamic banking. Qualitative methodology based on semi directive interviewees was the main approach for this paper. Three levels of gaps have been found out. These gaps are related respectively to Murabaha, Musharaka and Ijara. Three recommendations have been advised to fill the gaps: Absolute isolation of Fund, Sharia auditing committee And Compliance with AAOIFI Standards

Every branch of Janata Bank boldly stands by the objective of Janata Bank to accomplish it. The objective of JBL is to become the largest commercial bank in Bangladesh by playing significant roles in the banking sector as well as, in the National economy. According to annual report of Janata Bank 2014, 7.60 percent of total deposit and 6.05 percent of total loans and advances of the country’s banking sector. Strategic Priority

Now that, Islamic law has been defined and explained in detail, Islamic Banking can be observed further. There are four rules that govern investment behaviour in Islamic banking (Suleiman 2001):

Due to Deregulation the dimension of banking has been changing rapidly with Technological innovation and Globalization all over the world. In Bangladesh Commercial banks have to keep pace with the change in global business.

We have by now considered that this method should confront no objection from banking confidences in non-Muslim countries, and afterwards it is attuned with the conventional method it is comfortable to establish and work such banks with the minimal of hold and difficulties (including staff training). Moreover, dissimilar the conventional method, this method is transparent, leans on a firm theoretical basis, and furnishes management information that is very helpful for effectual supervising and control. The final is a very practical instrument both to the referred bank’s internal management and to the Central Bank authorities. The main concerns of the bank were the protection of its funds and the power of the borrower to give the interest not the final function of the lent money. Whether it was meant for founding a new enterprise, to elaborate a subsisting one, to overpass a cash flow trouble of a functioning concern, or to be employed by a small business, by a sole-owner initiative, or for consumption aims, etc. was not the major concern of the bank. The borrower must get all the

Results indicate that conventional banks perform better in profitability, while Islamic banks perform better in liquidity and credit risk. In t-test of the return on asset (ROA) and total equity to net loans, there are no major difference between Islamic banks and non-Islamic banks. In the return on equity and common equity to total assets, there are statistically significant differences in these two groups. The statistically significant difference was shown in the area of liquidity which means that the Islamic banks liquidity performance has major difference with the non-Islamic banks.

When Bangladesh came into existence on the 16th December, 1971, the banking sector of Bangladesh was in a total disarray. With the exception of two local banks incorporated in then East Pakistan, all the bigger local banks became inoperational.. Starting with such a humble  condition, the Banking Sector of Bangladesh has grown to a

Deposit Money: They collect deposit from public who want to deposit a lump sum of money for a fixed time period; say for a minimum period of 1,3,6,12 or 24 months period, thereby earning a higher rate of interest in return.Three 's also eligibility for depositors for example minimum has to be 18 and he/she has to be a citizen of Bangladesh. Other key features are customer will get 80% loan facility on deposited amount and it can be opened for 3 months,6 months,12 months or 24 months,

In Bangladesh the banking sector is expanding day by day. A number of new banks are also taking preparation to merge in the market. Banking process is becoming faster and easier because internet banking system has already introduced in many banks. Now-a-days in order to keep pace in the competitive field all the banks are trying to come up with the innovative products and services to satisfy their customers. On the other hand customers also need to have an idea about all the process and products of the different bank in order to make a right choice.