Efficiency of Islamic Banks in Malaysia Mariani Abdul Majid* NOR GHANI MD. NOR** FATHIN FAIZAH SAID ABSTRACT IN RECENT YEARS‚ MALAYSIAN ISLAMIC BANKS HAVE TO OPERATE IN AN INCREASINGLY COMPETITIVE ENVIRONMENT. THIS TREND IS EXPECTED TO CONTINUE AS THE COMPETITION FROM CONVENTIONAL BANKS PICKS UP‚ PARTLY IN RESPONSE TO THE ASEAN FREE TRADE AGREEMENT (AFTA)‚ BUT ALSO IN RESPONSE TO THE GENERAL GLOBALIZATION OF MARKETS. HOW ISLAMIC BANKS WILL BE AFFECTED BY THE INCREASED COMPETITIVE PRESSURES
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Deposits are strictly not considered as loans in the Islamic sense. If it is in the form of money‚ then he has an obligation to pay Zakat out of it. If these deposits are indeed loans‚ then it is the banks which should pay zakat on them. In reality‚the banks make the depositors pay the zakat ‚ which is injustice. (Alexandra R‚ Hardie & M. Rabooy‚ 1991) M. Norain‚ Ariffin‚ & M Adnan explained the perceptions and awareness among bankers in Islamic banks is essential to enhance corporate social responsibility
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Apart from that‚ banking operations are also one of the factors which contribute to the economical growth of a country. The main core business of the banking corporation is being a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities‚ either directly or through capital markets. Moreover‚ a bank also connects the customers that have capital deficits to customers with capital surpluses. 1.1 Role of Banking Institutions In addition
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A DISSERTATION ON “ISLAMIC BANKING IN INDIA-WHAT IS THE FUTURE POTENTIAL?” Introduction: The basic principles on which the Islamic banks function are prohibition of Riba i.e. collection and payment of interest and prohibition of investment in organization involved in unethical and socially harmful activity. the profits earned by a bank from its activities and returns made by a bank to the depositors shall be (a) from sharing of risk in the project and (b) profit-share agreements
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C‚x7ik y7ku`w2History of Islamic Banking in Pakistan Efforts to Islamize the economy of Pakistan started in the mid 60s. However a significant attempt was made in the mid 80s1 to convert the banking system to an Islamic banking system. The Banking Companies Ordinance (BCO‚ 1962) was amended to accommodate non-interest based transactions and the industry was given a specific timeline to convert to the non-interest based system. In early 90s‚ the whole exercise was challenged in the Federal Shariat
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Interest Rate Risk in Islamic Banking Introduction Many countries‚ especially those with a substantial number of Muslim citizens operate a dual banking system. This system has both the Islamic and conventional banking systems which cater for the needs of both the Muslim bankers and the non-Muslim bankers. In a conventional and theoretical banking system‚ it would be expected that a change in the banking interest rates would yield a responsorial change for customers in the event that the customers
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Doctor: David Hampton March 27‚ 2008 Introduction to Islamic banking system Islam not only prohibits dealing in interest but also in liquor‚ pork‚ gambling‚ pornography and anything else‚ which the Shariah (Islamic Law) deems unlawful. Islamic banking is an instrument for the development of an Islamic economic order. Islamic banking‚ with 15 to 20% growth a year‚ has emerged as one of the vital pillars of the global economic system. Islamic financial institutions (IFI) are operating in over 75
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and Jebel Ali Free Zone raised funds through sukuk but were forced to restructure once they found themselves unable to pay creditors. | * The market in Islamic bonds‚ or sukuk‚ is believed to total about $50 billion‚ roughly one per cent of global bond issuance * Dubai’s fast-growing Emirates airline said it was looking at the Islamic finance market to fund aircraft deliveries as European banks backed out of plane deals because of the euro zone debt crisis. * Some big Western banks‚ facing
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roTHE ROLE OF ISLAMIC BANKING IN ECONOMIC DEVELOPMENT IN EMERGING MARKETS BY HAJARA ADEOLA MD/CEO LOTUS CAPITAL LIMITED A PRESENTATION AT THE ISLAMIC FORUM BUSINESS LUNCHEON LA SCALA‚ LAGOS NOVEMBER 2007 1 OUTLINE • • • • • • • • • • • • • • Introduction Effects of the Interest Based system The Islamic Solution The Framework Shari’ah Objectives and Effects Islamic Tools for Prosperity Macroeconomic Efficiency Islamic Banks – An Alternative? Effects on the Economy Financial Institutions Global
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FOUNDATION OF ISLAMIC FINANCE ISF 1101 SEMESTER 2 2013/2014 DEVELOPMENT OF ISLAMIC BANKING AND FINANCE IN SINGAPORE INTRODUCTION Singapore or officially known as the Republic of Singapore is an island city-state which situated in the Southeast Asia specifically lies off the southern tip of Malaysia peninsular. The total area of Singapore is 716.1 square kilometres or 270 square miles and it accommodates approximately 5‚599‚200 citizens and 823‚082 of them are consists of Muslims
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