Need for Islamic banking essay
Islamic banking, or Islamic finance, follows the Islamic primary religious text, the Quran. As a result, all transactions in Islamic banking must comply with Sharia, the Islamic legal system based on the teachings of the Quran. Sharia principles not only prevent the practice of charging or paying interest on loans, but also prevent investments. Islamic banking and financing Islamic banking basically works according to the principle of interest-free banking, which means that there is no interest on loans provided. The main logic behind this concept is the fact that the investor should not make excessive profits from the hard work of another. The banks survive on 'profits'. Islamic Banking Chong and Liu, 2009 Khan, 2010 and customers' perspective on Islamic Banking Metawa and Almossawi, 1998 Dusuki, 2007 Hanif fa and Hudaib, 2007. T: Most Cited PapersIslamic Banking Essay. Islamic banking has been adopted at the national level in Pakistan, Sudan and Iran, and they have decided to Islamize the entire banking system. Islamic banking was established in Malaysia. Islamic banking products and services must be covered by the Islamic Banking Scheme IBS. These countries are potential and have many untapped opportunities for Islamic banking. A future has come for Islamic banking in these countries. Ministry of Finance-London, 2008 The Islamic sector also benefits from the religious and sentimental effect along with the business needs. People prefer the Islamic banking system over it. Islamic banking only follows the moral aspect, so the banking institution is under trust. Islamic banking follows Sharia law which is based on the Quran and Hadith. When they need more information or guidance on some aspect, Islamic bankers will usually ask the scholar or simply use an independent answer based on science and knowledge.,