Islamic Banking

Moslem banking (or participant banking) Moslem banking is banking or banking activity that is unchangeable with the principles of sharia law and its practical application through the levy of Moslem economics. Sharia prohibits the fixed or floating retribution or acceptance of specific interest or fees (known as riba, or usury) for loans of money. Investing in businesses that provide goods or work considered contrary to Islamic principles is also haraam (sinful and prohibited). Although these principles stick out been applied in varying degrees by historical Islamic economies referable to lack of Islamic practice, only in the novel 20th century were a number of Islamic banks organise to apply these principles to private or semi-private commercial institutions within the Moslem community. An premature market economy and an early form of mercantilism, sometimes called Islamic niftyism, were real between the eighth and twelfth centuries.The fiscal economy of the extent was based on the widely circulated bullion the gold dinar, and it tied together regions that were previously economically independent.

A number of economic concepts and techniques were applied in early Islamic banking, including bills of exchange, partnership(mufawada, including limited partnerships, or mudaraba), and forms of capital (almal), capital accumulation (nama al-mal), cheques,promissory notes, trusts (see Waqf), transactional accounts, loaning, ledgers and assignments. organisational enterprisesindependent from the state also existed in the gothic Islamic world, darn the agency institution was also introduced during that time. Many of these early capital istic concepts were adopted and further adva! nced i n medieval Europe from the 13th century onwards. The word Riba means excess, volunteer or addition, which according to Shariah terminology, implies any excess honorarium without due consideration (consideration does not include time lever of money). The...If you regard to get a full essay, order it on our website: OrderEssay.net

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