Sub-subject: the Islamic Banking and Finance. Syllabus:
Sample of the sub-subject: Islamic Banking and Finance (Islamic Civilisation)
Sub-Subject Description: Islamic Banking and Finance.
An Islamic Bank cannot be a single lender who is not involved in the business, the Bank should take a more active role, should be a financial partner, the Bank assumes the risks of the company and therefore have a part of the business ownership.
“When the leaders of the World are searching for financial reforms; it is desirable to have the global financial system built on ethical and moral foundations widely accepted for the common good of humanity.”
Dr. Ahmad Mohamed Ali, President of the Islamic Development Bank
Recently the Vatican stated that:
“The principles of the Islamic finance may represent a possible solution to the global financial crisis.” (Osservatore Romano, March 2009).
Under the Islamic Banking system there are mainly three types of loans:
If for whatever reason, any of the parties achieved a benefit derived from the Riba then has the obligation to destine it to charity (Zakat).
Under the principles of the Islamic economics, the objective of the Islamic Banking is, besides making money, contribute to the distribution of wealth in a fair and equitable way, not on speculation. Thus, an Islamic Bank can only offer products and services in accordance with the Sharia law.
The largest Islamic Bank is the “Bank Melli Iran,” followed by “Al-Rajhi Bank of Saudi Arabia.” Iran has the world's largest repository of the Islamic financial assets. Six of the ten largest Islamic banks in the World are Iranian.
The International Bank of Kuwait offers services of the Islamic Banking.