GROUP MEMBERS

NAMES SYED MAISUM ABBAS

RIZVI FAHAD ALIMUHAMMAD HAMZA UMAIR AHMED

REGISTRATION NO. FA15-BSE-025 FA15-BSE-002 FA15-BSE-007 FA15-BSE-012

Outline of the Presentation History of Islamic

Banking Pakistan and Islamic Banking

Introduction of Bank

Principles of Islamic Banking

Islamic Financial System

Islamic Financial transaction Terminology

Islamic Laws on Trading

Implementation of Islamic Banking

Islamic Modes of Financing

Difference between Islamic and Conventional Banking

Risk Management in Islamic Banking

Conclusion

What is Islamic Banking?

• The term “Islamic banking” refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) principles and guided by Islamic economics. The contemporary movement of Islamic finance is based on the belief that "all forms of interest are riba and hence prohibited".

History of Islamic Banking

• Islamic Capitalism• Currency: Gold Dinar• Early economic concepts and techniques

• Institutional involvement 70’s• Dubai Islamic Bank 1975

Modern Islamic History

Pakistan and Islamic Banking

Introduction of BankMeezan Bank

• Follows Islamic Banking System• A Premier Islamic Bank of Pakistan• Incorporated on January 27, 1997

Principles of Islamic Banking

Islamic Financial System

Verses Related To Interest

• Allah will destroy Riba (usury) and will give increase for Sadaqat (deeds of charity, alms, etc.) And Allah likes not the disbelievers, sinners.

البقرة ) (Al-Baqara, Chapter #2, Verse #276 , سورة• That which ye give in usury in order that it may increase

on (other) people's property hath no increase with Allah; but that which ye give in charity, seeking Allah's Countenance, hath increase manifold” (Ar-Room 30:39)

Hadith related to Interest

• From Jabir: The Prophet, may peace be on him, cursed the receiver and the payer of riba, the one who records it and the two witnesses to the transaction and said: "They are all alike [in guilt]." (Muslim, Kitab al-Musaqat, Bab la'ni akili al-riba wa mu'kilihi; also in Tirmidhi and Musnad Ahmad).

Islamic Financial Transaction Terminology

Islamic Laws on Trading

Implementation on Islamic Banking

Islamic Modes of Financing

Difference Between Islamic and Conventional Banking

Risks Management in Islamic Banking

Conclusion