Islamic banking signifies a composition of banking that is consistent with the doctrine advocated by the Sharia law. The Sharia law concerns Islamic rulings that are suggested in the Quran, the sacred text of the Muslims. In Islamic banking, these rules and regulations are applied practically in the development of Islamic economics (Chapra 1985). The doctrines, which accentuate honourable and fair play, are venerated throughout the world. Shariah forbids the imbursement or reception of interest, (riba), for the giving and accepting of cash. It also prohibits the act of trading in goods and services that go against its main beliefs. Most of these values were used as the basis for the creation of thriving economies in bygone eras. In the late 20th century, the authorities who deeply believed in this method of doing things came together to provide a different method of banking for conservative Muslims. However, this mode of banking is not restricted only to Muslims. Non-Muslims are welcome to use it if they so desire.
Many students don’t get to choose a topic for their essay and end up researching and writing on the topic they know very little about and the one they don’t like as much as other ones. However, tutors assign such topics on purpose – they want to test student’s researching and writing abilities as well as let students to acquire some new knowledge. One of the topics that students might not like is Islamic Banking. Essay Palace Company realizes that and decided to share some knowledge on this issue.
Tells About Essays On Islamic Banking
There is a big number of Muslims among the world’s population and majority of them think that banks should be avoided, because Islam (their religion) prohibits dealing with interest. However, just like all other world inhabitants, Muslims need banking services to buy cars, houses, to pay for goods and services, to facilitate capital investment, to trade, to save their earnings, etc. As a result, Muslims invented and developed their own system of banking – Islamic Banking, which is very different from traditional banking.
Provide Some Islamic Banking Topics
If you have been assigned to write an essay on Islamic Banking, you can research and write on a wide variety of topics related to it like “Major Laws And Principles Of Islamic Banking”, “The Shari’ah (major Islamic Law) and why it disallows Riba (profit),” “Qard-el-hassan (good loan) and why the lender does not allowed to charge any interest on the money lent.” Also, you can try writing about “Why it is not acceptable to make money from money and what are the consequences of this law,” etc. As you can see, there are many things you can write about, but if you experience difficulties, you can contact essaypalace.com Company and ask for professional assistance.
What is Islamic Banking?
Islamic banking refers to a system of banking or banking activity that is consistent with the principles of the Shari'ah (Islamic rulings) and its practical application through the development of Islamic economics. The principles which emphasise moral and ethical values in all dealings have wide universal appeal. Shari'ah prohibits the payment or acceptance of interest charges (riba) for the lending and accepting of money, as well as carrying out trade and other activities that provide goods or services considered contrary to its principles. While these principles were used as the basis for a flourishing economy in earlier times, it is only in the late 20th century that a number of Islamic banks were formed to provide an alternative basis to Muslims although Islamic banking is not restricted to Muslims.
Islamic banking has the same purpose as conventional banking except that it operates in accordance with the rules of Shari’ah, known as Fiqh al-Muamalat(Islamic rules on transactions). Islamic banking activities must be practiced consistent with the Shari’ah and its practical application through the development of Islamic economics. Many of these principles upon which Islamic banking is based are commonly accepted all over the world, for centuries rather than decades. These principles are not new but arguably, their original state has been altered over the centuries.
The principle source of the Shari’ah is The Qur’an followed by the recorded sayings and actions of Prophet Muhammad (pbuh) – the Hadith. Where solutions to problems cannot be found in these two sources, rulings are made based on the consensus of a community leaned scholars, independent reasoning of an Islamic scholar and custom, so long as such rulings to not deviate from the fundamental teachings in The Qur’an.
It is evident that Islamic finance was practiced predominantly in the Muslim world throughout the Middle Ages, fostering trade and business activities. In Spain and the Mediterranean and Baltic States, Islamic merchants became indispensable middlemen for trading activities. It is claimed that many concepts, techniques, and instruments of Islamic finance were later adopted by European financiers and businessmen.
The revival of Islamic banking coincided with the world-wide celebration of the advent of the 15th Century of Islamic calendar (Hijra) in 1976. At the same time financial resources of Muslims particularly those of the oil producing countries, received a boost due to rationalisation of the oil prices, which had hitherto been under the control of foreign oil Corporations. These events led Muslims' to strive to model their lives in accordance with the ethics and principles of Islam.
Disenchantment with the value neutral capitalist and socialist financial systems led not only Muslims but also others to look for ethical values in their financial dealings and in the West some financial organisations have opted for ethical operations.
Video - Islamic Banking
This video is covering the following topics:
1- Definition & Objective
2- Brief History of Islamic Banking
3- Islamic Banking Profile
4- Why Islamic Banking?
5- Importance of Islamic Banking
6- Sharia Principles of Islamic Banking
5- Major Differences between Islamic & Conventional Banking
