Islamic banking

INTRODUCTION This report identifies the roles of three types of banking found in the financial sector. These are: Islamic banking, Conventional banking and Investment banking. 1.1 Objectives 1) Demonstrate an understanding of the role(s) played by different organisations within the Financial Services Sector 2) Demonstrate, in report format, an understanding of the ethical conflicts which face firms in the Financial Services Sector 3) Demonstrate and evaluate problems caused by differing objectives which face both the customer and the Financial Services provider ISLAMIC BANKING 2.1 What is Islamic Banking Muslims follow a “set of duties and practices including worship, prayer, manners and morals, marriage, inheritance, crime and commercial…

THE UPSURGE OF ISLAMIC BANKING SERVICES IN KENYA. A Thesis Submitted to the University of Eastern Africa, Baraton, School of Business, Department of Management In Partial Fulfillment of the Requirements for the Degree of Master of Business Administration (Finance) Wilson Mauti Ogonda June, 2015 APPROVAL This thesis entitled “An Assessment of the Factors Influencing the Upsurge of Islamic Banking in Kenya” written and submitted by Wilson M. Ogonda, in partial fulfillment of the…

overcome by the third option. 3. Debt monetization where banks sell their slow maturing assets to the central bank to raise cash for the fast maturing liabilities. This option is not essential without a cost and banks may set in motion a vicious circle with its own momentum. According to (Syed, 2009), in case of Islamic finance system, the system is more stable as there is inherent in the matching of assets and liabilities. As we can see the arrangement of assets and liabilities are matched…

The banking sector adopted budgeting strategies to ensure that is guarded against probable future risks that may be faced. The DIB bank adopts measures against probable risks through measures to avoid such adverse conditions like risk concentrations which results when a number of players are engaged in the same business. This occurs due to Competition arising due to many players targeting the same market in the same geographical area. The bank adopts credit management risk policies and…

The Islamic Solution (Qardh-Ul-Hassan) Qard-ul-hassan (QH) is a voluntary loan without the lenders expectation of any payback principal. Furthermore, at the same time as, the nonpayer an obligation to return the principal, the lender is urged, according to a number of the sayings of the Prophet (pbuh), not to press the debtor if he/she is unable to repay at the specified deadline. For example, verses (2:245, 5:12, 11:57 18:57, 17:64 and 20:73) in the Quran explain in detail about those issues.…

Takaful means “mutual or joint guarantee” and it is the closest Islamic instrument to contemporary system of insurance. Earlier demand for insurance was very low in Muslim communities compared to conventional markets but with the introduction of Islamic mode of insurance more and more Muslims are open to the idea. Currently there are very few Takaful applicants in the market with very few institutions offering this insurance service on large scale. Though the claim for Takaful is for part…

Waqf in Arabic, is hold confinement or prohibition. In North and West Africa Waqf is called awqaf. The word Waqf is used in the Islamic law in the meaning of holding certain property and preserving it for the cantoned benefit of certain philanth and prohibiting any use or disposition of it outside it is specific objective. Whose benefit and usufruct can be extracted without consuming the property itself, Therefore, Waqf itself relates to land and building, there are awqaf of…

The year 1963 witnessed the foundation of the very first Islamic bank in Egypt, ever since that year and until today researchers are still interested in making researches that study the financial performance of Islamic and conventional banks. The global financial crisis that the world experiences every once in a while as in 2008, was the cause of the increase of the number of researchers, as they are interested in studying the financial performances of both systems; knowing that these studies…

Analysis Malayan Banking Berhad (Maybank) has the biggest Islamic Banking in Malaysia. Thosemanagers have analyzed the external environment and the internal resources of the organisation, they will have the information they need to assess the organization’s strength, weaknesses, opportunity and threat. Such an assessment normally is referred to as a SWOT (sometimes called TOWS) analysis (Bateman and Snell, 2013). Strengths and weakness refer to internal resources. For example, an organisation’s…

Profile of Al Rajhi Bank Al Rajhi Bank is a Saudi Arabian bank and the world largest Islamic bank by capital based on data in 2015. Al Rajhi established in 1957 and called as a major investor in Saudi Arabian business and is one of the largest that joint stock companies in the Kingdom. The first branches Al Rajhi Bank opened in Al Shmaisi in Riyadh in 1979. Now Al Rajhi Bank has over 600 branches and has 9600 number of employee. Its head office located in Riyadh with six regional offices.…