Islamic Banking

Moslem banking

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Islamic banking
Islamic banking (or participant banking) is banking or banking use that is consistent with the principles of Islamic law (Sharia) and its practical application through with(predicate) the development of Islamic economicals. Sharia prohibits the payment or espousal of specific interest or fees (known as Riba or usury) for loans of money. commit in businesses that provide goods or services considered contrary to Islamic principles is also Haraam (forbidden). While these principles were used as the basis for a flourishing parsimoniousness in earlier successions, it is only in the late 20th century that a number of Islamic banks were formed to apply these principles to private or semi-private commercial institutions at heart the Muslim community.[1] [2]

History of Islamic banking
Introduction
An early market sparing and an early form of mercantilism were developed between the 8th-12th centuries, which round refer to as Islamic capitalism.[3] The monetary economy of the period was based on the widely circulated currency the dinar, and it fasten 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) much(prenominal) as limited partnerships (mudaraba), and forms of capital (al-mal), capital accumulation (nama al-mal),[4] cheques, promissory notes,[5] trusts (see Waqf),[6] transactional accounts, loaning, ledgers and assignments.[7] Organizational enterprises independent from the state also existed in the gallant Islamic world, while the agency institution was also introduced during that time.[8] [9] more of these early capitalist concepts were adopted and further advanced in medieval Europe from the 13th century onwards.[4] Riba The word Riba agent redundant, increase or addition, which according to Shariah terminology, implies any excess compensation without due consideration (consideration does not include time value of...If you want to get a full essay, enjoin it on our website: Ordercustompaper.com



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