Exact Definition Of Islamic Banking

A form of ethical investments bound by the precepts of islam particularly the prohibition of interest payments.

Exact definition of islamic banking. While permitting the individual the right to seek economic well being islam makes a clear distinction between what is halal lawful and what is haram forbidden or unlawful in pursuit of such economic activity. Islamic banking a system of banking that only offers products that conform to the sharia or islamic law. Some of the salient features of this order may be summed up as. The remuneration it receives is justified either by its status as co owner to the results of the project financed losses or profits in the case of a moudharaba or a musharaka or by the provision of marketing or leasing of property previously.

Banking in islam is a saving money framework that depends on the standards of islamic law additionally known as shariah law and guided by islamic financial matters. For example in islamic banking checking and savings deposits do not accrue interest. They either lie dormant until withdrawal or are invested. The fundamental principle of islamic banking is based on the bank s direct involvement in transactions financed by it.

Islamic banking or islamic finance arabic. Two fundamental standards behind islamic banking concepts are the sharing of benefit and misfortune. Islamic banking synonyms islamic banking pronunciation islamic banking translation english dictionary definition of islamic banking. Islamic banking is a banking system that is based on the principles of islamic law sharia law and guided by islamic economics.

Find out more about our islamic banking products by calling our customer relationship executives on 1800 629 2265 1800 maybank who can advise you further. Maybank has been voted as singapore s best islamic bank by global finance from 2013 to 2015 and for 2017. Because this involves higher risk than conventional banking services various highly technical products.