Recommendations n conclusion AIB

Recommendations Prohibited earning is not allowed in Islam. Even both banks disclosed it in the notes to the account, it still not permissible in Islam. What both banks should do is that is to get rid any business or transaction that yield prohibited earning. This is because as a Shariah compliance bank and the followers of Islamic teaching we need to show to other people especially the non-Muslim that prohibited earning is illegal in Islam. Besides that it will make the customer feel secure in putting their money in the bank. Even there are prohibited earnings, the banks should disclose where is the source of it so that the customer or investor can see where are their monies going to and from where the earnings come from. For Bank Islam, we recommend them to provide Bai Bithaman Ajil too. Eventhough they offered Musharakah Mutanaqisah for home financing, we think that they should offer Bai Bithaman Ajil too to their customer. This is because it will provide more options for the customer in choosing the contract. It also gives the opportunity to the bank to provide more attractive benefit in the contracts so that many people will become their customer. From the questionnaire that being distributed to the banks, both banks said that they follow MFRS and AAOIFI as a complement for any missing elements in MFRS. From our perspective, both banks should take AAOIFI as the main standards because it cover every aspects in Islamic Banking whereas MFRS do not comply everything and any addition is in the Technical Release. Besides that, it will confuse the customer and also the staff because they using both standards at the same time so that is why it is better to stick to one standard rather than two.

Conclusion From the research we can conclude that every Islamic bank provide different kind of product. Even both provide the same product; the benefits and the regulations are different. Every contract has its own uniqueness and it is a job for the bankers to provide