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What is banking? • Usually involves accepting deposits and lending out money • There is interest accrued to deposits and interest charged on loans • Conventional banking technique, with basic tenet being profit making
What is Islamic Banking? • Islamic banking revolves around the two basic principles of Islamic law: • Sharing profit and loss • Prohibition from collecting interest from borrowers or paying interest to account holders • Financial transactions and investments are based on tenets of Islamic law: • Prohibition from investing in non-Islamic behaviours which include but aren’t restricted to matters of gambling, alcohol, pork etc.
What are the benefits of Islamic Banking? • Based on social responsibility • Based on sustainable environmental development • Borrower not forced to shell out large sums in interest • Account holder places money in bank as an interest free loan to bank • Extrapolating from prohibition of un-Islamic acts, ecologically detrimental projects are also prohibited • Humans considered trustees of nature, and must safeguard it – lack of environmental exploitation • Excess is discouraged – lack of economic exploitation • Emphasis on society as a whole, rather than the individual
Business Banking • For Small and Medium Enterprises • For Large Enterprises • Personal Banking • Online Banking • Mobile Banking • Debit Card • Credit Card • Term Deposits • Money transfer • Investment services and products Facilities provided in Islamic Banking:
Importance of Islamic bank when choosing a bank by income level
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