Ifis Failure
Riphah center of islamic business | Causes of Failure of IFIs in Pakistan | Supervisor : Sir lutf Ullah Saqib | | By: Muhammad Adnan | 4/10/2013 |
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Introduction.
More than 200 IFIs are operating all over the world with an annual growth rate between 12% to 15 % .Their combined asset is more than $200 billion and increasing day by day. Islamic financial institutions are developing very vastly over the globe. Islamic financial institutions mean where all the materials must follow according to the Islamic laws if any things against the Islam means it’s not an Islamic institution .IFIs are those who finance the organization or individual when they need for financing. The main difference among IFIs and conventional FIs are the IFIs ask what you need we will purchase for you means they are dealing in commodities while conventions are about financing through money and get extra amount on the principal amount. There are different ways to fiancé the individual or organization such are Mudaraba, Musharaka etc.
Islamic fiancé was practiced predominantly in the Muslim world throughout the middle ages. European financiers and businessman later adopted many concepts and techniques, and instruments of Islamic finance. In contrast the term Islamic financial system is relatively new appearing only in the mid-1980. In fact all earlier references to commercial or mercantile activities conforming to Islamic principles were made under the umbrella of either interest free or Islamic banking. This is no doubt prohibits the receipts or payments of interest as the nucleus of the system , but is supported by other principles of Islamic doctrine advocating risk sharing , individual rights, and duties , property rights and the sanctity of contracts . Similarly the Islamic financial system is not limited to banking, but covers financial instruments, financial markets and all types of financial intermediation.
There is a debate among the Islamic community over the
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Introduction.
More than 200 IFIs are operating all over the world with an annual growth rate between 12% to 15 % .Their combined asset is more than $200 billion and increasing day by day. Islamic financial institutions are developing very vastly over the globe. Islamic financial institutions mean where all the materials must follow according to the Islamic laws if any things against the Islam means it’s not an Islamic institution .IFIs are those who finance the organization or individual when they need for financing. The main difference among IFIs and conventional FIs are the IFIs ask what you need we will purchase for you means they are dealing in commodities while conventions are about financing through money and get extra amount on the principal amount. There are different ways to fiancé the individual or organization such are Mudaraba, Musharaka etc.
Islamic fiancé was practiced predominantly in the Muslim world throughout the middle ages. European financiers and businessman later adopted many concepts and techniques, and instruments of Islamic finance. In contrast the term Islamic financial system is relatively new appearing only in the mid-1980. In fact all earlier references to commercial or mercantile activities conforming to Islamic principles were made under the umbrella of either interest free or Islamic banking. This is no doubt prohibits the receipts or payments of interest as the nucleus of the system , but is supported by other principles of Islamic doctrine advocating risk sharing , individual rights, and duties , property rights and the sanctity of contracts . Similarly the Islamic financial system is not limited to banking, but covers financial instruments, financial markets and all types of financial intermediation.
There is a debate among the Islamic community over the