Banking on Sharia, Islamic banking and finance industry

There are an estimated 1.61 billion Muslims around the world, making the Bank one of the fastest growing sectors of the financial industry. Banks that serve the Islamic population must comply with several very specific principles of Shariah if hope to retain existing customers and attract new ones. Banks must be ready with niche products, and services, and training programmes of support for these products and services to present in this competitive market.

It follows the basic principle of Islamic Sharia banking laws, known as Islamic Mwamalat (Islamic transactions rules). The term "Islamic banking" synonym "full banking reserve" and "Sharia-compliant banking". The most prominent feature is RIBA. Prohibition of payment or collection of funds. Glossary of Islamic terms this is RIBA or masturbation.And Sharia also participate in financial investments which include anonymous such as buying and selling futures, as well as companies that are haraam. dealing in products that affect values such as alcohol, pork, gossip or pornography. these principles apply to all individuals, corporations and Governments.

Prohibited banks that are compatible with Islamic law to charge interest or fees, which is also kind of masturbation. To minimize risk, banks will often require a big push to goods, property, or to insist on additional guarantees.It is illegal for the bank charge a higher price for good if the deferred payment or collection later as the trade of goods rather than collecting. banking products include modharabh Shariah complaint (profit sharing), 036 (saved), and capital (joint venture), Murabaha (cost plus), leasing (leasing). Another way that banks work under Islamic laws while trying to reap the profits of a customer wants, buying and selling the client then item to a higher price.

Modharabh partnership between entrepreneur and the Bank. The Bank defines and flippers rabal money.The Bank offers all of the necessary capital to start the work and the entrepreneur does not work for business and profits are divided by agreed to reimburse the initial money rabal. Rabal money also compensate for the additional funds based on business profits as previously agreed. In the event that rabal money business offsetting cost folds and flippers.

Like capital, seeks money for modharabh business entrepreneur, the bank pays back with profits. There is often more than two parties who donate money and become partners who can influence business depending on the amount of money invested. Entrepreneur also contribute funds and shares in danger.Any loss in proportion to the amount of capital invested in businesses.

Fadia is deposit money in the Bank and receive a "gift" of the Bank. The Bank is the custodian of funds and we will refund the full amount at the request of the applicant; the applicant Bank bonuses amount of time remaining funds in the Bank with prestige, gift is not guaranteed.Prestige similar to benefit, but according to Islamic law.

Murabaha loan version governs the household or any type of goods needed by the borrower. Islamic Bank lending money borrowers to purchase property; instead, the Bank will purchase property at the request of the borrower at the disclosed freely, marked for the borrower to pay back, thus making a profit from investment. Named on the title of the borrower and allows the use of the property immediately and paid the Bank return batches.

Other type of loan is leasing, buying your own home or item Bank, renting the property to the borrower with retain ownership of the property.The borrower can either use the property for a specified period, or the payment of the purchase price, purchase it to achieve full ownership of property.

There are sometimes differences surrounding the interpretation of, say some scientists is to prevent simple money lenders of borrowers who, instead of modern banking fees reasonable interest agreed.The general consensus, however, that any interest in direct violation of Sharia law and therefore immoral.

While each has its own Islamic Bank Board rules on ethical banks managers, has been the establishment of Islamic banking, uniform policies and regulations.The IDB has worked on international standards, policies and procedures, accounting and auditing organization of the Islamic financial institutions accounting (Islamic) and Islamic financial services Board (the Board), the International Islamic finance market, liquidity management and rating of Islamic Development Bank to ensure accurate and fair practices.

Today, there are Islamic financial institutions around the world, participate in industry 180 billion dollars a day. in 1975 there was an Islamic banks; today there are more than 300 in over 75 countries.Islamic banks are becoming more widespread throughout the world, and can be found in large numbers in countries such as Indonesia, Pakistan, Bangladesh, Nigeria, Egypt, Turkey, Iran, Sudan, Algeria and Morocco, Iraq, Uzbekistan, Afghanistan, Malaysia, Saudi Arabia, Yemen, Syria Kazakhstan. total deposits in Islamic institutions and balance sheet, the assets under management and private wealth grew 25 to 40 per cent annually.

Because oil prices and liquidity are expected to stay with the same levels throughout 2007, the budget surpluses will remain high, both public and private sectors to participate with the Islamic market. many Islamic countries invested in large infrastructure projects, creating more than a trillion dollars in investments. There is also a huge potential customer base. According to the surveys would choose the standard and poor 's, 20% of customers in the Gulf region and South East Asia, Islamic banking products to similar traditional products is large middle class in cities and suburbs which already use conventional banking, so favourable opportunities for Islamic banks. most important to remark out the attractive religious and political Islamic banks, is that people choose their safety offerings. the evidence is clear: Islamic banking is big business and growing every day.

Islamic financial products for Islamic banks to be competitive with traditional products and attractive to clients, however, must meet the profile of risk/reward for investors and exporters meet the Shari'a, and cost-effective enough. in addition, you must educate their staff understand Islamic banks Shariah relating to banking, trained to comply with Sharia Islamic also serves its customers

Dr. Linda Eagle is Founder & President, "the banker" CAs Adkom group 22 education and consulting company dedicated to servicing banks and credit unions, money services businesses (MySpace) and all areas of the global financial community "," with thousands of common and custom training programs in areas such as BSA/AML compliance regulatory, train Narrator, systems, sales and service training and many more.

Academic "denied" adkom group based in New York, USA for more information, email linda.eagle@edcomm.com or call + 9400 1-212-631-...