Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Transcript of weee
ISLAMIC FINANCIAL SYSTEM
Islamic financial system
Islamic banking system
Lecturer’s Name: Dr. Sheila Ainon Yusof
1)Muhammad Adha Bin Hashim
Islamic finance refers to a system of finance that complies with Islamic law.
The Islamic Financial System encompasses the Islamic banking system, Islamic money market, Islamic insurance or Takaful, Islamic capital market and the specialised financial institutions which provide alternative sources of financing.
KEY COMPONENTS OF ISLAMIC FINANCIAL SYSTEM
What is Islamic banking?
Islamic banking is banking or banking activity that is consistent with the principles of sharia and its practical application through the development of Islamic economics. As such, a more correct term for ‘Islamic banking’ is ‘Sharia compliant finance’.
The underlying principles that govern Islamic banking are mutual risk and profit sharing between parties, the assurance of fairness for all and that transactions are based on an underlying business activity or asset.
Sharia prohibits gambling (maisir), speculative trading (gharar) and acceptance of specific interest or fees for loans of money (known as riba, or usury), whether the payment is fixed or floating. Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also prohibited.
A group of participants mutually guarantee each other against loss or damage
Contribute a sum of money to a takaful fund in the form of participative contribution (tabarru’)
You will undertake a contract (aqad) for you to become one of the participants
Managed by third party – the takaful operator.
There are two types of takaful businesses:
family takaful and general takaful.
The product under family takaful are:
• Family Takaful
• Investment-linked Takaful
• Child education Takaful
• Medical & Health Takaful
The product under general takaful are:
• Home Takaful
• Motor Takaful
• Personal Accident Takaful