introduction to islamic banking by mazher ali bokhari (2)
TRANSCRIPT
![Page 1: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/1.jpg)
Starting in the Name of Allah, The Most Beneficent, The Most Merciful
![Page 2: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/2.jpg)
Ovolo ENGONGA Yannick
Head of International Operations & Strategic Planning Division
GULF AFRICAN BANK LIMITEDLibreville-Gabon Istanbul university
Phone Nos. +905345124195 / +24106436833Email: [email protected]
![Page 3: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/3.jpg)
Honorable Guests, Participants, Ladies & Gentlemen.
Thank you for giving me the honor of presenting an overview of Islamic Banking
![Page 4: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/4.jpg)
Islam has given an immense importance to trade
The nobility of this profession is obvious from the fact that it was the chosen profession of prophet Muhammad (PBUH).
Importance of Trade in Islam
![Page 5: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/5.jpg)
Before explaining the concept “what is Islamic Banking” the elaboration of concept “why Islamic Banking” is very important.
Islam is a complete code of life that provides guidance regarding each aspect of life.
![Page 6: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/6.jpg)
WHY ISLAMIC BANKING
The primary objectives of Islamic Economic System are as under.Equal Distribution of wealthSocial justice
These objectives can never be achieved in Interest/Riba based economic systems.
![Page 7: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/7.jpg)
WHAT IS ISLAMIC BANKING
Now we come to our core question “Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Sharia’h”
![Page 8: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/8.jpg)
DIFFERENCE BETWEEN ISLAMIC AND CONVENTIOANL BANKING
Islamic Banking
1) Functions and operations are based on Sharia’h principles
Conventional Banking
1)Functions and operations are based on fully man made principles
![Page 9: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/9.jpg)
DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking2) Promote risk-sharing between provider of capital (investor) and user of funds (entrepreneurs)
Conventional Banking
2) Investor is assured of pre-determined rate of interest
![Page 10: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/10.jpg)
DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking
3) Aim at maximising profit but subject to Sharia'h restrictions
Conventional Banking
3) Aim at maximising profit without any restrictions
![Page 11: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/11.jpg)
DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking
4) Partners, investor and traders, buyer or seller relationship
Conventional Banking
4) Creditor-Debtor relationship
![Page 12: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/12.jpg)
DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking
5) Encourage asset-based financing and based on commodity trading
Conventional Banking
5) Based on money trading. Money is a medium of exchange and not a commodity, its sale and purchase is prohibited in Islam.
![Page 13: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/13.jpg)
DIFFERENCE BETWEEN ISLAIC AND CONVENTIOANL BANKING
Islamic Banking6) No right of profit if there is no risk involved. The profit and loss sharing depositor may lose money in case of loss.
Conventional Banking
6) It is almost risk free banking and depositor has no risk of losing its money because interest is guaranteed.
![Page 14: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/14.jpg)
ISLAMIC BANKING PRODUCTS AND SERVICES
Currently available Islamic Banking Products and services are
a)Partnership based modes of financing
Musharaka Finance, Mudaraba Finance,
b) Trade based modes of financing
Murabaha Finance, Salam finance
c)Rental based modes of financingIjarah Finance, Diminishing
Musharaka Finance
![Page 15: Introduction to islamic banking by mazher ali bokhari (2)](https://reader036.vdocuments.us/reader036/viewer/2022081604/58a3dd881a28ab7f0b8b59ed/html5/thumbnails/15.jpg)
MAZHAR ALI BOKHARI
Phone Nos. +905345124195/ +24106436833