ISLAMIC BANKING: A MAGNETIC ASPECT OF THE BANKING GLOBE

PRESENTED BY :

ANWITA CHAKRABORTY

SCOPE OF THE PRESENTATION• HISTORY OF ISLAMIC BANKING.• CONCEPT AND BASIC PRINCIPLES OF ISLAMIC

BANKING.• FINANCIAL INSTRUMENTS ASSOCIATED WITH

ISLAMIC BANKING.• EXPANSION OF ISLAMIC BANKING WORLDWIDE

• MALAYASIA, BANGLADESH, PAKISTAN, INDIA.

• COMPARISON: ISLAMIC V/S CONVENTIONAL BANKING

• RISK MANAGEMENT: ISLAMIC BANKING• CONCLUSION • SUGGESTION

HISTORY OF ISLAMIC BANKINGIslamic Banking First Came Into Existence In The Year

1950, In Pakistan; Prime Motive Of Lending Without Interest.

Subsequently It Was Established In Egypt In The Year 1963 By Economist Ahmad Elnaggar.

Further 9 Islamic Banks Were Established In Egypt.The Influx Of "Petro-dollars" And A "General Re-

islamization" Following The October War And 1973 Oil Crisis gave Great Help To The Development Of The Islamic Banking Sector.

HISTORY OF ISLAMIC BANKINGIn the year 1975, first commercial Islamic bank was set up

in Dubai.By 1995, 144 Islamic financial institutions had been

established worldwide, including 33 government-run banks, 40 private banks, and 71 investment companies.

Concepts: Islamic BankingBanking: BANKING IS RELATIONSHIP WHICH EXISTS

BETWEEN CUSTOMER AND THE BANKER, WHEREIN CUSTOMER DEPOSITS MONEY AND IN TURN BANKER PROVIDES INTEREST ON IT; ON THE OTHER SIDE OF THE COIN BANKS PROVIDES LOANS AND CHARGES INTEREST ON IT.

Islamic Banking is banking or banking activity that is consistent with the principles of sharia and its practical application through the development of Islamic economics. As such, a more correct term for 'Islamic banking' is 'Sharia compliant finance.

Principles of Islamic BankingTalking about the principles of islamic

banking, the most important thing to be kept in mind is Islamic banking is based on risk-sharing which is a component of trade rather than risk-transfer which is seen in conventional banking.

 PROFIT SHARING (Mudharabah):