Islamic Banking
Name- Nikunj Bajoria
Room no.- 06
Roll no.- 0121
Guide : Professor Abhinav Ghosh
Introduction
slami! bankin" is bankin" or bankin" a!#ivi#$ %hi!h is based on #he
&rin!i&les of sharia and i#s &ra!#i!al a&&li!a#ion is #hrou"h #he slami!
e!onomi!s.
'haria &rohibi#s a!!e&#an!e of s&e!i(! in#eres# on loans kno%n as riba)
%he#her &a$men# is (*ed or +oa#in". nves#men# in businesses a"ains# slam
,like &ork or al!ohol- is !onsidered haraam ,sinful-. Al#hou"h #hese
&rin!i&les have been a&&lied his#ori!all$ #o &reven# unislami! &ra!#i!es) onl$
in #he la#e 20
#h
!en#ur$ %ere slami! banks formed #o &reven# unislami!
&ra!#i!es #o &riva#e or semi-&riva#e !ommer!ial ins#i#u#ions %i#hin #he
.uslim !ommuni#$.
As of 201/) sharia !om&lain# (nan!ial ins#i#u#ions re&resen# a&&ro*ima#el$
10 of #o#al %orld asse#s ,12#n- %hi!h is "ro%in" a# an e*orbi#an# ra#e of
12.30 as &er 45.
slami! !a&i#alism %as develo&ed be#%een 6
#h
and 12
#h
!en#uries) an era
%hen gold dinar %as a %idel$ !ir!ula#ed !urren!$. # #ied #o"e#her re"ions
#ha# %ere &reviousl$ e!onomi!all$ inde&enden#. .an$ e!onomi! !on!e&#s
like bills of e*!han"e) !he7ues) !a&i#al a!!umula#ion) &romissor$ no#es e#!.
%hi!h %ere la#er ado&#ed in medieval 4uro&e from 18
#h
!en#ur$ on%ards.
Objective
9he &rimar$ obje!#ive of es#ablishin" slami! bank all over #he
%orld is #o &romo#e) fos#er and develo& #he a&&li!a#ion of
slami! &rin!i&les) la% and #radi#ion #o #he #ransa!#ion of
(nan!ial) bankin" and rela#ed business a:airs and #o &romo#e
inves#men# !om&anies) en#er&rises and !on!erns %hi!h shall
#hemselves be en"a"ed in business as are a!!e&#able and
!onsis#en# %i#h slami! &rin!i&les) la% and #radi#ions. Bu# #he
obje!#ive of slami! bank %hen vie%ed from #he !on#e*# of i#s
role in an e!onom$) i#s s&e!i(! obje!#ives ma$ be enlis#ed as
follo%in":
?
9o o:er !on#em&orar$ (nan!ial servi!es in !onformi#$ %i#h
slami! 'haria.
?
9o !on#ribu#e #o%ards e!onomi! develo&men# and
&ros&eri#$ %i#hin #he &rin!i&les of slami! jus#i!e.
?
9o fa!ili#a#e e;!ien# allo!a#ion of resour!es.
?
9o hel& a!hievin" s#abili#$ in #he e!onom$.
Name- Nikunj Bajoria
Room no.- 06
Roll no.- 0121
Guide : Professor Abhinav Ghosh
Introduction
slami! bankin" is bankin" or bankin" a!#ivi#$ %hi!h is based on #he
&rin!i&les of sharia and i#s &ra!#i!al a&&li!a#ion is #hrou"h #he slami!
e!onomi!s.
'haria &rohibi#s a!!e&#an!e of s&e!i(! in#eres# on loans kno%n as riba)
%he#her &a$men# is (*ed or +oa#in". nves#men# in businesses a"ains# slam
,like &ork or al!ohol- is !onsidered haraam ,sinful-. Al#hou"h #hese
&rin!i&les have been a&&lied his#ori!all$ #o &reven# unislami! &ra!#i!es) onl$
in #he la#e 20
#h
!en#ur$ %ere slami! banks formed #o &reven# unislami!
&ra!#i!es #o &riva#e or semi-&riva#e !ommer!ial ins#i#u#ions %i#hin #he
.uslim !ommuni#$.
As of 201/) sharia !om&lain# (nan!ial ins#i#u#ions re&resen# a&&ro*ima#el$
10 of #o#al %orld asse#s ,12#n- %hi!h is "ro%in" a# an e*orbi#an# ra#e of
12.30 as &er 45.
slami! !a&i#alism %as develo&ed be#%een 6
#h
and 12
#h
!en#uries) an era
%hen gold dinar %as a %idel$ !ir!ula#ed !urren!$. # #ied #o"e#her re"ions
#ha# %ere &reviousl$ e!onomi!all$ inde&enden#. .an$ e!onomi! !on!e&#s
like bills of e*!han"e) !he7ues) !a&i#al a!!umula#ion) &romissor$ no#es e#!.
%hi!h %ere la#er ado&#ed in medieval 4uro&e from 18
#h
!en#ur$ on%ards.
Objective
9he &rimar$ obje!#ive of es#ablishin" slami! bank all over #he
%orld is #o &romo#e) fos#er and develo& #he a&&li!a#ion of
slami! &rin!i&les) la% and #radi#ion #o #he #ransa!#ion of
(nan!ial) bankin" and rela#ed business a:airs and #o &romo#e
inves#men# !om&anies) en#er&rises and !on!erns %hi!h shall
#hemselves be en"a"ed in business as are a!!e&#able and
!onsis#en# %i#h slami! &rin!i&les) la% and #radi#ions. Bu# #he
obje!#ive of slami! bank %hen vie%ed from #he !on#e*# of i#s
role in an e!onom$) i#s s&e!i(! obje!#ives ma$ be enlis#ed as
follo%in":
?
9o o:er !on#em&orar$ (nan!ial servi!es in !onformi#$ %i#h
slami! 'haria.
?
9o !on#ribu#e #o%ards e!onomi! develo&men# and
&ros&eri#$ %i#hin #he &rin!i&les of slami! jus#i!e.
?
9o fa!ili#a#e e;!ien# allo!a#ion of resour!es.
?
9o hel& a!hievin" s#abili#$ in #he e!onom$.