Get an information about finance and banking products including corporate/ personal banking, online banking and other banking services from this document
2. All About Banking
What is banking?
Banking in UAE?
What is conventional banking?
What is Islamic Banking?
What are the benefits of Islamic Banking?
What are the demerits of conventional
banking?
Facilities provided in Conventional Banking:
Facilities provided in Islamic Banking:
3. 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
4. Banking in UAE
UAE’s banking system revolves around Islamic
banking
It follows the principles of Islamic law, also
called Sharia
5. What is conventional banking?
Account holders place their money in banks
for both safeguarding it as well as earning
interest
Banks mobilise money from account holders
and lend it to borrowers.
Banks charge interest on money lent to
borrowers and pay interest to money held by
account holders
6. 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.
7. 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
8. What are the demerits of
conventional banking?
Emphasis placed on individual rather than society
Interest based banking system – leads to desire
for excess
No restraint on investment policies – driven by
economic acquisition than ecologic consideration
Borrower required to pay high interest
Account holders deposit money in bank in order to
earn interest
Not based on concept of social responsibility
Not based on concept of sustainable
environmental development
9. Facilities provided in Conventional
Banking:
Corporate Banking
For Small and Medium Enterprises
For Large Enterprises
Personal Banking
Banking facility online
Mobile Banking
Debit Card
Credit Card
Term Deposits
Money transfer
Investment services and products
10. Facilities provided in Islamic
Banking:
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
11. Conclusion
Almost all of the facilities that are available in conventional
banking are also to be found in Islamic Banking.
However, there exists a principle of social responsibility in
Islamic Banking that the conventional kind lacks.
In order for society to progress, there must be an equitable
sharing of both profit and loss among the people, which can
help bridge the gap between the rich and poor.
Conventional banking, based on interest, helps widen the
economic and social gap between the haves and the havenots.
In order to achieve not just economic progress but also social
progress, Islamic Banking is the way to go.
