Friday, 22 March 2013
Islamic Banking: The core of Finance
Islamic banking is growing at a rate of 20% per annum. National and International organizations have stretched their wings into this thriving industry. Due to its exceptional identity, Islamic Banking system has now turned out to be the nucleus of Islamic Financing. The most important thing to be noted is that it lies on the principle of justice.
Islamic Banking goes well with the profit-sharing law in which the risk is mutually shared within the bank and the customer. It follows the profit and loss-sharing principle to raise funds. The banks with Islamic wings and units are always ready to know their fund users better in order to make sure that they are used in a proper way. The then profit is shared in a pre-agreed ratio. Islamic Banking and Financing is not restricted to Muslims only although it is based on the Shariah principles.