Islamic Banking Rhb Bank
CTU351
INDIVIDUAL ASSIGNMENT
RHB Islamic Banking
NAME : ATIQAH BT NORDIN
SECTION : 12.6.21
COURSE : BM112
LECTURER’S NAME : USTAZAH ZURAIDAH
ACKNOWLEDGEMENT
I admit that this is the result of my own work or effort
Date : 3 JULY 2013 ( _____________________) ATIQAH BT NORDIN 2010761395/ITM101210945
CONTENT
Introduction Islamic Banking is interest free banking, in which there is no fixed rate of return. Islamic banking is the banking system which is run in accordance with the Islamic laws and the Shari a’ board; that guides the institutions. This Shari a’ board authorizes the products that whether these are Shari a’ compliant or not. Islamic banking is the banking that is guided by Islamic law (Shari a’) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called Riba in Islamic discourse”. Islamic banking also finds its roots in Islamic finance and all type of transactions are interest free of risk sharing. The interest is probihited in Islamic ways of banking as it is also obvious from Quran. In Quran, in Sura Al-Iman, Allah said that; “O you who believe! Do not devour Riba multiplying it over and keep your duty to Allah that you may prosper” (3:130). Same kind of prohibition regard fixed interest is also lead in sura Al-Rum(39), Al-Nisa (160-161) and Al-Baqarah (275-281) of Quran. Riba and Gharar are illegal under Islamic law. Riba refers to fixed rate of interest. Gharar refers to fixed rate of interest. Gharar refers to speculation. Islamic banking shows dramatic improvements and developments in Pakistan. Islamic banking is taken as national policy and it is supported but there exist dual banking structure in the
INDIVIDUAL ASSIGNMENT
RHB Islamic Banking
NAME : ATIQAH BT NORDIN
SECTION : 12.6.21
COURSE : BM112
LECTURER’S NAME : USTAZAH ZURAIDAH
ACKNOWLEDGEMENT
I admit that this is the result of my own work or effort
Date : 3 JULY 2013 ( _____________________) ATIQAH BT NORDIN 2010761395/ITM101210945
CONTENT
Introduction Islamic Banking is interest free banking, in which there is no fixed rate of return. Islamic banking is the banking system which is run in accordance with the Islamic laws and the Shari a’ board; that guides the institutions. This Shari a’ board authorizes the products that whether these are Shari a’ compliant or not. Islamic banking is the banking that is guided by Islamic law (Shari a’) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called Riba in Islamic discourse”. Islamic banking also finds its roots in Islamic finance and all type of transactions are interest free of risk sharing. The interest is probihited in Islamic ways of banking as it is also obvious from Quran. In Quran, in Sura Al-Iman, Allah said that; “O you who believe! Do not devour Riba multiplying it over and keep your duty to Allah that you may prosper” (3:130). Same kind of prohibition regard fixed interest is also lead in sura Al-Rum(39), Al-Nisa (160-161) and Al-Baqarah (275-281) of Quran. Riba and Gharar are illegal under Islamic law. Riba refers to fixed rate of interest. Gharar refers to fixed rate of interest. Gharar refers to speculation. Islamic banking shows dramatic improvements and developments in Pakistan. Islamic banking is taken as national policy and it is supported but there exist dual banking structure in the