Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Essays on Islamic Banking and Finance

Essays on Islamic Banking and Finance

Ahmed, Mahmood

Paperback

Series: Islamic Banking, Book 2

General Education

Currently unavailable to order

ISBN10: 1983399418
ISBN13: 9781983399411
Publisher: Independently Published
Published: Jul 8 2018
Pages: 282
Weight: 0.92
Height: 0.64 Width: 6.00 Depth: 9.00
Language: English
The book provides essays on Islamic banking and finance published earlier in thereputed journals. It covers quite a comprehensive list of concepts and ideas for peoplewho are interested on the topic and would like to practice it. Based on the Quranicinjunction, Allah, The Almighty, has permitted trade and forbidden riba (2: 275),Islamic banks do not deal in money rather deals with money using the Islamic modesof finance.The bank converts or links 'bank money' into 'commodity' and sells thoseto the ordering buyer at a 'mark-up profit' under the installments of re-payment infuture. Islamic banking therefore, may be called 'money to commodity to money(MCM) model of banking. On the other hand, conventional banks deal in money. Itmay be called money upon money (MM), which is prohibited 'riba' model ofbanking. Islamic banks necessarily link financing to real goods, services and projects.Outright lending without the involvement of goods and services may not be possiblein the system. Further, it may be called 'asset-backed' financing system. Islamicfinance in form and legality is asset-backed at the micro-juristic level. It also ensurescontrol of bank over 'money movement' which ultimately contributes to minimize theoverdue risk of bank and curb over expansion of credit to both public and privatesectors. This may help attain monetary expansion in harmony with the growth ofoutput and, thus help minimize inflationary pressures. In Islamic banking, profit is thereward of risk. Islamic banks bear risk under documentary ownership andconstructive possession of goods for a short or fleeting time. The 'mark-up profit' isthe reward for converting 'bank-money' into 'commodity' and selling them underconstructive possession to the promised buyer. It is 'mark-up profit' that is generatedfrom the adaptation of Shariah principles of buying and selling to Islamic banking.Mark-up profit therefore, is neither 'general profit, nor 'riba'. The adaptation ofShariah is allowed in the Shariah principle of 'Istihsan'.

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