Islamic banking

Submitted by Anonymous (not verified) on Thu, 08/22/2019 - 16:08
Year
1989
Country
United Kingdom
Language
English
Abstract

The author presents a summary of the operations Islamic banks provide in order to create profits while avoiding riba (interest), which is forbidden in al- Qur'an. There are six main operations in Islamic finance listed in the article. They are qard hasan (a loan), bay (trade), shirka (partnership), mozarbat (profit and loss and trust sharing, ijara (leasing), and ijara wa-iqtina (hire purchase). Repayment of a qard hasan, which is based basically on good will, is a matter of principle. The pillars of Islamic finance are partnership for the greater social benefit, for the total Islamic vision of the economy rests on the notion that a people's wealth should be used to the benefit of all its members. The article serves to both relate the total picture of an Islamic economy and to describe the means by which that economy is to finance its projects.

English
ISSN/ISBN
0005-5395
No. of Pages
pp.12-13
Number
759
Volume
139
Select type of work
Name of the Journal
Author(s)
CIS Program Old
CIS publications
No
CIS Thesis
No