Various Types Of Islamic Are As Banking †Myassignmenthelp.Com

Question: Discuss About The Various Types Of Islamic Are As Banking? Answer: Participatory modes Mudarabah it means the equity finance. This includes a contract among 2 parties, one is the investment manager and other one is the capital owner. Profit is shared between the parties as per the agreed ratio (Iqbal and Molyneux 2016). Musharakha it is also same like Mudarabah with only one difference is that under Mudarabah the profit and loss both are shared at agreed ratio whereas under Musharakha the loss is shared is proportion of capital share. Diminishing partnership this is the contract among the beneficiary and the financeunder which both entered into the partnership to own the specified asset with the attached condition that the financer gradually will sell his share to beneficiary with the agreed schedule and agreed price (Seyed-Javadin et al. 2014). Sales modes Murabahah it is the specific type of sale and by origin it is not a mode of financing. Here the transaction is carried out based on Cost plus Profit and the seller reveal the cost to buyer after adding the profit percentage t arrive at final selling price (Hanif 2014). Istisna it is a contract under which the customer orders the manufacturer or producer for manufacturing a particular commodity to be purchased by him. Salam it is stated as the price is in cash, however, supply of the goods are deferred. Rent based modes Ijarah it actually means giving something on rent. This term is used under two situations (1) employing service of a person in exchange of wage (2) payment of rent for using a property or an asset known as LAND (Erol et al. 2014). Tawaruq for purchasing the commodity on credit and then selling it to the third party at spot on loss with the main objective of getting cash is termed as Tawaruq. Islamic laws on trading As per the Sharia law, the Islamic trusts and institutions cannot invest in the stock market. The basic law under Islamic for all the transaction is legal. Interactional relationship among the men is unlimited irrespective of the fact that it is as per the Sharia or not. Each period and place has its own specific model and form of interactions within themselves that is distinct from other time period and other places. Therefore, it is not practical to limit and confine the interaction to the specific form (Abedifar, Molyneux and Tarazi 2013). Through the basic law for every trading is legal, some reasons are there that can alter the legal state to illegal. Further, as the causes are limited difference to legal trading are in unlimited number. However, various reasons those make the trading unlawful are as follows The trading that contains usury under that The trading that contains ghahar or unclarity Traded commodity that is unlawful or forbidden goods Trading that contains the requirement that may cause unclarity and usury that is to be emerged (Abdul-Rahman 2014). The above mentioned things are most prominent that causes a trading form that is to be unlawful or illegal. List of Islamic bankers in the world Top largest Islamic banks in the world are as follows Abu Dhabi Islamic Bank Al Rajhi Bank Albaraka Banking Group AmIslamic Bank Amlak Finance Arcapita Bank Bank AlBilad Bank Al-Jazira Bank Asya Bank Islam Malaysia Bank Kerjasama Rakyat Malaysia Bank Keshavarzi Bank Maskan Bank Mellat Bank Melli Iran Bank Muamalat Malaysia Bank of Industry and Mine Bank Pasargad Bank Refah Bank Saderat Iran Bank Sepah Bank Tejarat Boubyan Bank CIMB Islamic Bank Dubai Bank Dubai Islamic Bank Emirates Islamic Bank Export Development Bank of Iran Faisal Islamic Bank of Egypt Gulf Finance House Investment Dar Islam Brunei Darussalam Islami Bank Bangladesh Ithmaar Bank Kuwait Finance House Kuwait International Bank Kuwait Turkish Participation Bank Masraf Al Rayan Maybank Islamic Noor Islamic Bank Omdurman National Bank Bank Public Islamic Bank Qatar International Islamic Bank Qatar Islamic Bank Shamil Bank of Bahrain Sharjah Islamic Bank Syria International Islamic Bank Tamweel Trkiye Finans Reference Abdul-Rahman, Y., 2014.The Art of RF (Riba-Free) Islamic Banking and Finance: Tools and Techniques for Community-Based Banking. John Wiley Sons. Abedifar, P., Molyneux, P. and Tarazi, A., 2013. Risk in Islamic banking.Review of Finance,17(6), pp.2035-2096. Erol, C., F. Baklaci, H., Aydo?an, B. and Tun, G., 2014. Performance comparison of Islamic (participation) banks and commercial banks in Turkish banking sector.EuroMed Journal of Business,9(2), pp.114-128. Hanif, M., 2014. Differences and similarities in Islamic and conventional banking. Iqbal, M. and Molyneux, P., 2016.Thirty years of Islamic banking: History, performance and prospects. Springer. Seyed-Javadin, S.R., Raei, R., Iravani, M.J. and Safari, M., 2014. Presenting a conceptual model to explain the role of strategic management and planning in Islamic banking competitiveness.International Letters of Social and Humanistic Sciences,26, pp.46-56.