Dissertation anglais

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  • Publié le : 16 mai 2010
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SABIR M. Zouhair
L3 STCF gr1

Muslim Banking

1. What is Islamic Banking?
2. What is the Islamic Banking Global Scenario?
3. What are the Major modes of Islamic banking and finance?
4. Can Islamic banks play any role in economic development of the Country?

1. What is Islamic Banking?

Islamic banking has been defined as banking in consonance with the ethos andvalue system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. Islamic banking, the more general term, is expected not only to avoid interest-based transactions, prohibited in theIslamic Shariah, but also to avoid unethical practices and participate actively in achieving the goals and objectives of an Islamic economy.

Islamic Shariah prohibits ‘interest,’ but it does not prohibit all gains on capital. It is only the increase stipulated or sought over the principal of a loan or debt that is prohibited. Islamic principles simply require that performance of capitalshould also be considered while rewarding the capital. The prohibition of a risk free return and permission of trading, as enshrined in the Verse 2:275 of the Holy Quran, makes the financial activities in an Islamic set-up real asset-backed with ability to cause ‘value addition’.
The Islamic banking system is based on risk-sharing, owning and handling of physical goods, involvement in the process oftrading, leasing and construction contracts using various Islamic modes of finance.
As such, Islamic banks deal with asset management for the purpose of income generation. They will have to prudently handle the unique risks involved in management of assets by adherence to best practices of corporate governance. Once the banks have stable stream of Halal income, depositors will also receivestable and Halal income.
The forms of businesses allowed by Islam at the time the Holy Quran was revealed included joint ventures based on sharing of risks & profits and provision of services through trading, both cash and credit, and leasing activities. In the Verse II:275, Allah the Almighty did not deny the apparent similarity between trade profit in credit sale and Riba in loaning, butresolutely informed that Allah has permitted trade and prohibited Riba.
Profit has been recognized as ‘reward’ for (use of) capital and Islam permits gainful deployment of surplus resources for enhancement of their value. However, along with the entitlement of profit, the liability of risk of loss on capital rests with the capital itself; no other factor can be made to bear the burden of the risk ofloss. Financial transactions, in order to be permissible, should be associated with goods, services or benefits. At macro level, this feature of Islamic finance can be helpful in creating better discipline in conduct of fiscal and monetary policies.
Besides trading, Islam allows leasing of assets and getting rentals against the usufruct taken by the lessee.
All such things/assets corpus of which isnot consumed with their use can be leased out against fixed rentals. The ownership in leased assets remains with the leaser who assumes risks and gets rewards of his ownership.

2. What is the Islamic Banking Global Scenario?

Over the last three decades Islamic banking and finance has developed into a full-fledged system and discipline reportedly growing at the rate of 15percent perannum. Today, Islamic financial institutions, in one form or the other, are working in about 75 countries of the world. Besides individual financial institutions operating in many countries, efforts have been underway to implement Islamic banking on a country wide and comprehensive basis in a number of countries. The instruments used by them, both on assets and liabilities sides, have developed...
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