SlideShare une entreprise Scribd logo
Assignment
Submitted to Sir Fida
Submitted by Urooj Fatima
Semester 3rd (Morning)
Section B
Session 2018-2022
Subject English
Department Zoology
Concept of Islamic Banking: A True
Alternative to Interest Based Conventional
Banking
Introduction
• Banking in conventional sense is the process of accepting, , for the purpose of
lending or investment, of deposits of money from the public, repayable on demand.
• The principal function of a Bank is to bring into a common pool of idle money of
the general public, for the purpose to gain a return in the form of interest, fee and
dividends in making advances and providing services to others.
• Interest(Riba) is strictly prohibited in Islam and hence there can be no banking
system in Islam as Interest.
• An Islamic bank is a financial institution which identifies itself with the spirit of
Shariah, as laid down by the Holy Qur'an and Sunnah, as regards its objectives,
principles, practices and operations.
• Islamic banking has made it possible to keep the people away from the interest as
well as to address all the banking needs simultaneously and has become an ideal
alternative to the interest-based conventional banking worldwide.
• Interest free element is the distinguishing feature of Islamic banking, apart from
two elements being vital in Islamic Banking i.e. equal distribution of income and
wealth, and increase in equity participation of economy.
• Islamic banking because of its value-orientated ethos enables it to draw finances
from both Muslims and non-Muslims alike.
Research Objective
• How Islamic banking system is different from conventional banking system?
• What are the main aspects of Islamic banking?
• What are the drawbacks of conventional banking system?
Literature Review
• Evolution of Islamic banking:
1. Started from Egypt due to efforts of Ahmed El Najjar in 1963, 'Mit-Ghamr Islamic
Savings Bank (MISB) established, this bank is regarded as the first Islamic bank in the
world (The Financial Express, 2015).
2. In 1971, Nasir social bank was established and named as interest free commercial bank.
• Prohibition of Riba is the fundamental governing principle of Islamic Financing and this is
stated in the Qur’an.
“Those who devour Riba (Interest) will not stand except as stands one whom devil hath driven
to madness by (his) touch”.(Surah Al Baqarah 2:275)
• Riba is forbidden because it (a) corrupts society, (b) implies improper appropriation
of other people's property, (c) acts such a way which ultimate effect is negative
growth, (d) demeans and diminishes human personality, and (e) is unjust (Siddiqi,
2004).
• Narrated by Jabir ”: The Prophet cursed the receiver and the payer of interest, the
one who records it and the two witnesses to the transaction and said: "They are all
alike [in guilt]. (Muslim 3;1219)
• Islamic banks do not allow or assist in any excessive risky work like 'Gharar' or
'Mysir' as they are not Shariah compliant and forbidden in Islam for their excessive
risk or absolute uncertainty (Arman, 2013).
Research Methodology
• Qualitative research
• Document analysis
• Descriptive research
• Based on prior literature and secondary information
Refrences
• Justice Muhammad Taqi Usmani, 1998, ‘The Adverse effect of interest on Society’.
• Mahnmoud Amin El-Gamal, 2000, ‘A Basic guide to Contemporary Islamic
Banking and Finance’.
• M. Muslehuddin Dr. 2008, ‘Banking and Islamic Law’.
• Official Website of Institute of Islamic Banking and Insurance
• M. and Khatun, M. (2013). The compliance with Shariah Governance system of
AAOIFI: A study on Islamic Banks Bangladesh
• Akbar C. S. (31 March 2015). Islamic banking: History and development, The
Financial Express.

Contenu connexe

Similaire à concept of islamic banking that is an alternate to conventional banking.pdf

Banking in Islam or Islamic banking part 3
Banking in Islam or Islamic banking part 3Banking in Islam or Islamic banking part 3
Banking in Islam or Islamic banking part 3
Yousuf Ibnul Hasan
 
Why India needs Islamic Banking
Why India needs Islamic BankingWhy India needs Islamic Banking
Why India needs Islamic Banking
jameeliqbal
 
Investment of Islami Bank bangladesh limited
Investment of Islami Bank bangladesh limitedInvestment of Islami Bank bangladesh limited
Investment of Islami Bank bangladesh limited
ZahidulIslam182
 
Islamic banking system
Islamic banking systemIslamic banking system
Islamic banking system
Amber Memon
 
Mehnaz
MehnazMehnaz
Mehnaz
MehnazMehnaz
Islamic banking concepts and practices
Islamic banking concepts and practices Islamic banking concepts and practices
Islamic banking concepts and practices
Mufti abdulsattar Laghari
 
Islamic Banking
Islamic Banking Islamic Banking
Islamic Banking
Muzamil Rehman
 
Islamic Banking - May2015
Islamic Banking - May2015Islamic Banking - May2015
Islamic Banking - May2015
Rizny Ismail
 
What islamic banking (ali) Mohammad.Ali.Mian
What islamic banking (ali) Mohammad.Ali.MianWhat islamic banking (ali) Mohammad.Ali.Mian
What islamic banking (ali) Mohammad.Ali.Mian
Ali Mian
 
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdfOverview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
ArfanAhmed22
 
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdfOverview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
ArfanAhmed22
 
islamic banking Financial Markets and Institutions
islamic banking Financial Markets and Institutionsislamic banking Financial Markets and Institutions
islamic banking Financial Markets and Institutions
Advaldo CM
 
Alhdua CIBE - Presentation on Al Barakah case study Islamic Microfinance Forum
Alhdua CIBE - Presentation on Al Barakah case study Islamic Microfinance Forum Alhdua CIBE - Presentation on Al Barakah case study Islamic Microfinance Forum
Alhdua CIBE - Presentation on Al Barakah case study Islamic Microfinance Forum
Alhuda Centre of Islamic Banking & Economics
 
Islamic banking
Islamic bankingIslamic banking
Islamic banking
Mn Abdulla
 
Presentation on conventional & Islamic Banking
Presentation on conventional & Islamic BankingPresentation on conventional & Islamic Banking
Presentation on conventional & Islamic Banking
Babar Ali
 
Alhuda cibe - How islamic microfinance can facilitate rural finance
Alhuda cibe - How islamic microfinance can facilitate rural financeAlhuda cibe - How islamic microfinance can facilitate rural finance
Alhuda cibe - How islamic microfinance can facilitate rural finance
Alhuda Centre of Islamic Banking & Economics
 
3[1]
3[1]3[1]
Banking in Islam or Islamic banking part 1
Banking in Islam or Islamic banking part 1Banking in Islam or Islamic banking part 1
Banking in Islam or Islamic banking part 1
Yousuf Ibnul Hasan
 
What is the trust of consumer toward the Islamic banking
What is the trust of consumer toward the Islamic bankingWhat is the trust of consumer toward the Islamic banking
What is the trust of consumer toward the Islamic banking
Awais Sargana
 

Similaire à concept of islamic banking that is an alternate to conventional banking.pdf (20)

Banking in Islam or Islamic banking part 3
Banking in Islam or Islamic banking part 3Banking in Islam or Islamic banking part 3
Banking in Islam or Islamic banking part 3
 
Why India needs Islamic Banking
Why India needs Islamic BankingWhy India needs Islamic Banking
Why India needs Islamic Banking
 
Investment of Islami Bank bangladesh limited
Investment of Islami Bank bangladesh limitedInvestment of Islami Bank bangladesh limited
Investment of Islami Bank bangladesh limited
 
Islamic banking system
Islamic banking systemIslamic banking system
Islamic banking system
 
Mehnaz
MehnazMehnaz
Mehnaz
 
Mehnaz
MehnazMehnaz
Mehnaz
 
Islamic banking concepts and practices
Islamic banking concepts and practices Islamic banking concepts and practices
Islamic banking concepts and practices
 
Islamic Banking
Islamic Banking Islamic Banking
Islamic Banking
 
Islamic Banking - May2015
Islamic Banking - May2015Islamic Banking - May2015
Islamic Banking - May2015
 
What islamic banking (ali) Mohammad.Ali.Mian
What islamic banking (ali) Mohammad.Ali.MianWhat islamic banking (ali) Mohammad.Ali.Mian
What islamic banking (ali) Mohammad.Ali.Mian
 
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdfOverview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
 
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdfOverview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
Overview on IBBPLC the First Shariah Based Bak of South Aisa.pdf
 
islamic banking Financial Markets and Institutions
islamic banking Financial Markets and Institutionsislamic banking Financial Markets and Institutions
islamic banking Financial Markets and Institutions
 
Alhdua CIBE - Presentation on Al Barakah case study Islamic Microfinance Forum
Alhdua CIBE - Presentation on Al Barakah case study Islamic Microfinance Forum Alhdua CIBE - Presentation on Al Barakah case study Islamic Microfinance Forum
Alhdua CIBE - Presentation on Al Barakah case study Islamic Microfinance Forum
 
Islamic banking
Islamic bankingIslamic banking
Islamic banking
 
Presentation on conventional & Islamic Banking
Presentation on conventional & Islamic BankingPresentation on conventional & Islamic Banking
Presentation on conventional & Islamic Banking
 
Alhuda cibe - How islamic microfinance can facilitate rural finance
Alhuda cibe - How islamic microfinance can facilitate rural financeAlhuda cibe - How islamic microfinance can facilitate rural finance
Alhuda cibe - How islamic microfinance can facilitate rural finance
 
3[1]
3[1]3[1]
3[1]
 
Banking in Islam or Islamic banking part 1
Banking in Islam or Islamic banking part 1Banking in Islam or Islamic banking part 1
Banking in Islam or Islamic banking part 1
 
What is the trust of consumer toward the Islamic banking
What is the trust of consumer toward the Islamic bankingWhat is the trust of consumer toward the Islamic banking
What is the trust of consumer toward the Islamic banking
 

Dernier

Who Is the Largest Producer of Soybean in India Now.pdf
Who Is the Largest Producer of Soybean in India Now.pdfWho Is the Largest Producer of Soybean in India Now.pdf
Who Is the Largest Producer of Soybean in India Now.pdf
Price Vision
 
Earn a passive income with prosocial investing
Earn a passive income with prosocial investingEarn a passive income with prosocial investing
Earn a passive income with prosocial investing
Colin R. Turner
 
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investmentsfalcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
Falcon Invoice Discounting
 
What's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightnessWhat's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightness
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
5 Tips for Creating Standard Financial Reports
5 Tips for Creating Standard Financial Reports5 Tips for Creating Standard Financial Reports
5 Tips for Creating Standard Financial Reports
EasyReports
 
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
AntoniaOwensDetwiler
 
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
5spllj1l
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
taqyea
 
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfOptimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
shruti1menon2
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
nimaruinazawa258
 
The Impact of GST Payments on Loan Approvals
The Impact of GST Payments on Loan ApprovalsThe Impact of GST Payments on Loan Approvals
The Impact of GST Payments on Loan Approvals
Vighnesh Shashtri
 
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
Donc Test
 
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFiTdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
nimaruinazawa258
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
beulahfernandes8
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
Commonwealth
 
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptxUnlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
cosmo-soil
 
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
k4ncd0z
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
FinTech Belgium
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
ynfqplhm
 
1.2 Business Ideas Business Ideas Busine
1.2 Business Ideas Business Ideas Busine1.2 Business Ideas Business Ideas Busine
1.2 Business Ideas Business Ideas Busine
Lawrence101
 

Dernier (20)

Who Is the Largest Producer of Soybean in India Now.pdf
Who Is the Largest Producer of Soybean in India Now.pdfWho Is the Largest Producer of Soybean in India Now.pdf
Who Is the Largest Producer of Soybean in India Now.pdf
 
Earn a passive income with prosocial investing
Earn a passive income with prosocial investingEarn a passive income with prosocial investing
Earn a passive income with prosocial investing
 
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investmentsfalcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
 
What's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightnessWhat's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightness
 
5 Tips for Creating Standard Financial Reports
5 Tips for Creating Standard Financial Reports5 Tips for Creating Standard Financial Reports
5 Tips for Creating Standard Financial Reports
 
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
 
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
 
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfOptimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
The Impact of GST Payments on Loan Approvals
The Impact of GST Payments on Loan ApprovalsThe Impact of GST Payments on Loan Approvals
The Impact of GST Payments on Loan Approvals
 
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
 
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFiTdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
 
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptxUnlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
 
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
 
1.2 Business Ideas Business Ideas Busine
1.2 Business Ideas Business Ideas Busine1.2 Business Ideas Business Ideas Busine
1.2 Business Ideas Business Ideas Busine
 

concept of islamic banking that is an alternate to conventional banking.pdf

  • 1. Assignment Submitted to Sir Fida Submitted by Urooj Fatima Semester 3rd (Morning) Section B Session 2018-2022 Subject English Department Zoology
  • 2. Concept of Islamic Banking: A True Alternative to Interest Based Conventional Banking
  • 3. Introduction • Banking in conventional sense is the process of accepting, , for the purpose of lending or investment, of deposits of money from the public, repayable on demand. • The principal function of a Bank is to bring into a common pool of idle money of the general public, for the purpose to gain a return in the form of interest, fee and dividends in making advances and providing services to others. • Interest(Riba) is strictly prohibited in Islam and hence there can be no banking system in Islam as Interest. • An Islamic bank is a financial institution which identifies itself with the spirit of Shariah, as laid down by the Holy Qur'an and Sunnah, as regards its objectives, principles, practices and operations.
  • 4. • Islamic banking has made it possible to keep the people away from the interest as well as to address all the banking needs simultaneously and has become an ideal alternative to the interest-based conventional banking worldwide. • Interest free element is the distinguishing feature of Islamic banking, apart from two elements being vital in Islamic Banking i.e. equal distribution of income and wealth, and increase in equity participation of economy. • Islamic banking because of its value-orientated ethos enables it to draw finances from both Muslims and non-Muslims alike.
  • 5. Research Objective • How Islamic banking system is different from conventional banking system? • What are the main aspects of Islamic banking? • What are the drawbacks of conventional banking system?
  • 6. Literature Review • Evolution of Islamic banking: 1. Started from Egypt due to efforts of Ahmed El Najjar in 1963, 'Mit-Ghamr Islamic Savings Bank (MISB) established, this bank is regarded as the first Islamic bank in the world (The Financial Express, 2015). 2. In 1971, Nasir social bank was established and named as interest free commercial bank. • Prohibition of Riba is the fundamental governing principle of Islamic Financing and this is stated in the Qur’an. “Those who devour Riba (Interest) will not stand except as stands one whom devil hath driven to madness by (his) touch”.(Surah Al Baqarah 2:275)
  • 7. • Riba is forbidden because it (a) corrupts society, (b) implies improper appropriation of other people's property, (c) acts such a way which ultimate effect is negative growth, (d) demeans and diminishes human personality, and (e) is unjust (Siddiqi, 2004). • Narrated by Jabir ”: The Prophet cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said: "They are all alike [in guilt]. (Muslim 3;1219) • Islamic banks do not allow or assist in any excessive risky work like 'Gharar' or 'Mysir' as they are not Shariah compliant and forbidden in Islam for their excessive risk or absolute uncertainty (Arman, 2013).
  • 8. Research Methodology • Qualitative research • Document analysis • Descriptive research • Based on prior literature and secondary information
  • 9. Refrences • Justice Muhammad Taqi Usmani, 1998, ‘The Adverse effect of interest on Society’. • Mahnmoud Amin El-Gamal, 2000, ‘A Basic guide to Contemporary Islamic Banking and Finance’. • M. Muslehuddin Dr. 2008, ‘Banking and Islamic Law’. • Official Website of Institute of Islamic Banking and Insurance • M. and Khatun, M. (2013). The compliance with Shariah Governance system of AAOIFI: A study on Islamic Banks Bangladesh • Akbar C. S. (31 March 2015). Islamic banking: History and development, The Financial Express.