Chapter 3: Islamic banking
An exploration uncovering how Shariah banks are different from conventional banks, how Islamic banks manage risk and deposits, and the various mechanisms used in banking products
It seems the debate on interest has actually stirred interest among readers on the topic. Approaches made through emails and calls…
I repeat, for a purpose, the last paragraph of the previous article published on the 13th June 2018. Please take note…
The debate whether money can be treated as a commodity and hence whether the rules of buying and selling can be…
The deposits received by an Islamic bank in the investment savings and investment deposit accounts constitute the Mudarabah capital and are…
How are customers’ funds channeled through an Islamic bank’s system starting from deployment to subsequent retrieval with profit? What happens in…
The last article elaborated on how an Islamic bank performs the dual role of being the fund manager (Mudarib) while receiving…
Continuing with our discussion on how a loss situation is handled by an Islamic bank, we shall first learn exactly how…
To recap from last week, in a situation where a financed customer is unable to fulfill his/her commitment on time due…
We are still on the subject of differences between Islamic and conventional banks. After appreciating how an Islamic bank arrives at…
While we are discussing the treatment of various types of customer deposits, it is appropriate to know if the Shariah principles…
For a quick recap, the funds in the Mudarabah common pool are mainly comprised of customer deposits received via saving accounts…
Once the amount for the overall distributable profit for a certain period has been determined, the Islamic bank shall arrive at…
Today, we are going to wrap up the discussion on profit distribution between the Islamic bank and its depositors so that…