Islamic Banking

Moslem banking (or participant banking) Moslem banking is banking or banking activity that is fixed with the principles of sharia law and its practical application through the facts of life of Moslem economics. Sharia prohibits the fixed or floating earnings or acceptance of specific interest or fees (known as riba, or usury) for loans of money. Investing in businesses that provide goods or go considered contrary to Muslim principles is also haraam (sinful and prohibited). Although these principles induce been applied in varying degrees by historical Islamic economies referable to lack of Islamic practice, only in the modern 20th century were a number of Islamic banks organize to apply these principles to private or semi-private commercial institutions within the Muslim community. An premature market economy and an early form of mercantilism, sometimes called Islamic niftyism, were real between the eighth and twelfth centuries.The monetary economy of th e extent was based on the widely circulated cash the gold dinar, and it tied together regions that were previously economically independent.

A number of economic concepts and techniques were applied in early Islamic banking, including bills of exchange, partnership(mufawada, including limited partnerships, or mudaraba), and forms of capital (almal), capital accumulation (nama al-mal), cheques,promissory notes, trusts (see Waqf), transactional accounts, loaning, ledgers and assignments. organizational enterprisesindependent from the state also existed in the chivalric Islamic world, era the agency institution was also introduced d uring that time. Many of these early capit! alist concepts were adopted and further advanced i n medieval Europe from the 13th century onwards. The word Riba means excess, preserve or addition, which according to Shariah terminology, implies any excess recompense without due consideration (consideration does not include time pass judgment of money). The...If you regard to get a full essay, order it on our website: BestEssayCheap.com

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