StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

ANSWERS TO SOME FREQUENTLY - Dissertation Example

Cite this document
Summary
ISLAMIC RESEARCH AND TRAINING INSTITUTE Frequently Asked Questions on Islamic Banking (A Summary) 1. THE HOLY QUR'ANHAS PROHIBITED RIBA. WHAT IS MEANT BY THIS TERM? The term Riba can be loosely translated into the financial concept of 'interest'. As per Shariah law and Islamic scriptures, the practice of giving or taking interest upon principal is prohibited…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.9% of users find it useful
ANSWERS TO SOME FREQUENTLY
Read Text Preview

Extract of sample "ANSWERS TO SOME FREQUENTLY"

Download file to see previous pages

2. WHAT IS THE SCOPE OF TRANSACTIONS TO WHICH THE BAN ON RIBA IS APPLICABLE? DOES THE TERM APPLY ONLY TO THE INTEREST CHARGED ON CONSUMPTION LOANS OR DOES IT ALSO COVER PRODUCTIVE LOANS ADVANCED BY BANKING AND FINANCIAL INSTITUTIONS? The Shariah clearly states that riba al-nasi'ah, “the fixing in advance a positive return on a loan as a reward for waiting” is prohibited. Hence it could be understood as a ban on interest as commonly used today. Islamic jurists, the fuqaha, state in no unclear terms that all manifestations of riba are forbidden.

So it does not matter if the context is consumption or business and also whether the loan in issued or availed. It is also irrelevant whether the institution in question is a commercial bank, government agency, business enterprise or an individual. 3. DOES THE PROHIBITION OF RIBA APPLY EQUALLY TO THE LOANS OBTAINED FROM OR EXTENDED TO MUSLIMS AS WELL AS NON-MUSLIMS? The Islamic Fiqh Academy (IFA), which is the leading authority on financial transactions, mentions that there is no leniency in the application of Shariah laws even if one party of a financial transaction is non-Muslim. . IS SUCH A SCHEME ACCEPTABLE FROM AN ISLAMIC POINT OF VIEW?

In economies with high rates of inflation, restrictions imposed by Shariah laws can undermine value of investments. To compensate for such a loss, a method of indexation is usually employed. There is no consensus yet among the fuqaha, as to the compatibility of indexation practices with Islamic scriptures. So far the Fiqh Academy has permitted indexation in cases pertaining to “wages and contracts fulfilled over a period of time” and has disallowed in cases pertaining to monetary debts. Similarly, “for debts in a specific currency, due in installments, the parties may agree to settle the installments due in a different currency at the prevailing rate of exchange on the date of settlement”. 5. WHAT ARE THE MAJOR MODES OF FINANCING USED BY ISLAMIC BANKS AND FINANCIAL INSTITUTIONS?

Islamic banking system has invented a few ingenious modes of financing in order to comply with Shariah principles. The first mode is based upon sharing of both profits and losses incurred by investments, respectively the mudarahab (passive partnership) and musharakah (active partnership). The second mode operates on the basis of credit offered durig the purchase of goods and services and uses such financial concepts as murabahah (sales contract at a profit markup), ijarah (leasing), salam and istisna (contracts).

These modes are unique to Islamic finance and have been approved by fiqh officials. Apart from being consistent with Islamic precepts, these modes incentivise direct investments, thereby contributing to economic growth of the bank/institution/country. Yet, improvements need to be done in order to integrate Islamic financial system into global

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“ANSWERS TO SOME FREQUENTLY Dissertation Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/geography/1405173-answers-to-some-frequently
(ANSWERS TO SOME FREQUENTLY Dissertation Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/geography/1405173-answers-to-some-frequently.
“ANSWERS TO SOME FREQUENTLY Dissertation Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/geography/1405173-answers-to-some-frequently.
  • Cited: 0 times

CHECK THESE SAMPLES OF ANSWERS TO SOME FREQUENTLY

Mental Status Examination

He was well articulated in his replies even when they did not seem to match with earlier answers to same question.... Although, he frequently displayed memory loss by saying he does not remember or is not sure, he was quite assertive in his statement that he was with his girlfriend previous night and that from there he had gone straight to his home.... Though it was not so obvious, he was little disoriented and frequently got exasperated... Thought content Michael Smith displayed some memory lapse with regard to recent events, especially related to person called ‘Thomas'....
4 Pages (1000 words) Essay

Statistics on Internet Use among Young People

The questionnaire was administered to ten individuals who had different answers to the questions and the analysis of the answers was done to inform the prevalence of the usage of the internet and other issues.... When asked about the frequency of usage of the internet, the different respondents had different answers to give towards the question with, Toyosi Abass, Jack Alexander, Zakir Almo, and Sara Abdulreda saying that they used it daily.... hellip; The respondents had faced a problem in internet security while in the process of using the internet at different times, most of the people in the 40% had experienced some form of insecurity frequently, 40% had received some form of internet insecurity while only 20% of the total respondents had received any form of insecurity....
8 Pages (2000 words) Essay

Demographics of Durango Local Coffee Houses

The popularity of coffee shops, also termed by market analysts as "specialist coffee shops" is indeed widespread, both in the busy streets of commercial districts and in home rule municipalities such as Durango.... The growth of coffee shops has been abrupt and indeed worthy of a study as to who are the people likely to frequent this place....
7 Pages (1750 words) Research Paper

Questionaire Desgin

There are structured questions as well such as multiple choice, which should be used the most, dichotomous questions, which are having only two answers "yes" and "no" or even "don't know", they also should be used frequently to save respondents time and making it easier for the respondent to answer.... Scaling questions are also used but they take a lot of respondent's time in thinking and can make the respondent feel about changing in views frequently, which can provide inaccurate data....
2 Pages (500 words) Essay

Accommodations for Students with Special Needs

This accommodation is frequently paired with the reduced distraction place accommodation, and can be listed as time and a half, double time or unlimited testing time.... Here are some areas of accommodations: Physical arrangement of the classroom - In this it means the settings, where the student works.... Slower students need more time spent per lesson while gifted students advance more easily and rapidly; Grades - Mark correct answers rather than mistakes....
3 Pages (750 words) Essay

Islamic Banking

Islamic Development Bank, Islamic Research And Training Institute Islamic Banking: ANSWERS TO SOME FREQUENTLY Asked Questions.... Open-ended questions are also included to give a respondent a wide range of answers to express their opinions, interests, concerns, recommendations and disapprovals.... The interviews cover standard closed question requiring a limited range of answers.... This encourages honesty in the respondents' answers hence facilitates the collection of valid data (Arun & Rachana 2000)....
2 Pages (500 words) Research Proposal

Approaches to Research in Social Sciences

nbsp; When the asked the frequency of the usage of the internet, the different respondents had different answers to give towards the question with, Toyosi Abass, Jack Alexander, Zakir Almo, and Sara Abdulreda saying that they used it daily.... he respondents differently to the question of the sites they normally visited during the sessions they had daily or in the course of the week, those who responded that they used internet for library research were only 20%, Facebook had 90%, twitter was 60%, Youtube had 50%, 20% mentioned that they visit games sites and some other said that they had used the internet to watch news about the world....
8 Pages (2000 words) Report

The Roles of Head Teachers in Saudi Arabian and Britain

It will also highlight some of the limitations of using these methods.... … The paper “Aspects of School Effectiveness and Organisational Learning Entrenched in the Schools in Saudi Arabia and Britain” is a  brilliant example of a research paper on education....
11 Pages (2750 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us