Difference Between Islamic Banking And 
Difference between islamic banking and conventional/ commercial banking
BUSHRA TABASSUM
IQRA ARSHAD
SIDRA
MEHAK
MEHAK KHAN
EMAD KHAN
ISLAMIC BANKING:
Islamic banking refers to a system of banking activity that is consistent with
Islamic law (sharia’h) principles and guided by Islamic economics
SHARI'AH – INTRODUCTION
• What do we mean when we say ISLAMIC? We certainly mean an
• Act, action, activity or thing that is in conformity with islamic
• Teachings;
• And when we say shari'ah what do we mean? Is shari’ah a set of rules and laws set out by religion?
• Let us see what is it!
• Literally shari'ah means "way" or "path to the water source";
• Shari'ah is the body of islamic religious law' which means it is a legal framework within which the public and private aspects of life are regulated;
PRINCIPLES OF ISLAMIC BANKING
• Prohibits usury, the collection and payment of interest, also commonly called riba.
• The discouragement of the production of goods and services which contradict the islamic value
(haram)
• The introduction of an islamic tax, zakat;
• Prohibition of maysir (gambling)
BANKING AND ISLAM
Although institutional presence of banks was not there in early islamic history but the function of saving and investment was there even before Islam.
The mudarabah business between rasoolullah and ummul moomineen hazrat khadejatul kubra before islam.
banking itself is a acceptable concept and the issue is in methodology.
If methodology is correct then the banking becomes acceptable to Islam.
The western model of banking is based on lending and borrowing on interest which is not allowed in Islam.
ROLE OF BANKS IN ECONOMY
Exchange of financial assets on behalf of customers;
Exchange of own financial assets
Provide safety of cash to depositors
Very important facility
Investment device for market participants:
Deposits are used in economy
Platform for small savers:
Small savers participate in economic functions through their
BUSHRA TABASSUM
IQRA ARSHAD
SIDRA
MEHAK
MEHAK KHAN
EMAD KHAN
ISLAMIC BANKING:
Islamic banking refers to a system of banking activity that is consistent with
Islamic law (sharia’h) principles and guided by Islamic economics
SHARI'AH – INTRODUCTION
• What do we mean when we say ISLAMIC? We certainly mean an
• Act, action, activity or thing that is in conformity with islamic
• Teachings;
• And when we say shari'ah what do we mean? Is shari’ah a set of rules and laws set out by religion?
• Let us see what is it!
• Literally shari'ah means "way" or "path to the water source";
• Shari'ah is the body of islamic religious law' which means it is a legal framework within which the public and private aspects of life are regulated;
PRINCIPLES OF ISLAMIC BANKING
• Prohibits usury, the collection and payment of interest, also commonly called riba.
• The discouragement of the production of goods and services which contradict the islamic value
(haram)
• The introduction of an islamic tax, zakat;
• Prohibition of maysir (gambling)
BANKING AND ISLAM
Although institutional presence of banks was not there in early islamic history but the function of saving and investment was there even before Islam.
The mudarabah business between rasoolullah and ummul moomineen hazrat khadejatul kubra before islam.
banking itself is a acceptable concept and the issue is in methodology.
If methodology is correct then the banking becomes acceptable to Islam.
The western model of banking is based on lending and borrowing on interest which is not allowed in Islam.
ROLE OF BANKS IN ECONOMY
Exchange of financial assets on behalf of customers;
Exchange of own financial assets
Provide safety of cash to depositors
Very important facility
Investment device for market participants:
Deposits are used in economy
Platform for small savers:
Small savers participate in economic functions through their