ISLAMIC BANKING: A MAGNETIC

ASPECT OF THE BANKING GLOBE

PRESENTED BY :
ANWITA CHAKRABORTY

SCOPE OF THE PRESENTATION

HISTORY OF ISLAMIC BANKING.
CONCEPT AND BASIC PRINCIPLES OF ISLAMIC

BANKING.
FINANCIAL INSTRUMENTS ASSOCIATED WITH
ISLAMIC BANKING.
EXPANSION OF ISLAMIC BANKING WORLDWIDE
MALAYASIA, BANGLADESH, PAKISTAN, INDIA.

COMPARISON: ISLAMIC V/S CONVENTIONAL

BANKING
RISK MANAGEMENT: ISLAMIC BANKING
CONCLUSION
SUGGESTION

HISTORY OF ISLAMIC BANKING

Islamic Banking First Came Into Existence In The Year

1950, In Pakistan; Prime Motive Of Lending Without

Interest.
Subsequently It Was Established In Egypt In The Year
1963 By Economist Ahmad Elnaggar.
Further 9 Islamic Banks Were Established In Egypt.
The Influx Of "Petro-dollars" And A "General Reislamization" Following The October War And 1973 Oil
Crisis gave Great Help To The Development Of The
Islamic Banking Sector.

HISTORY OF ISLAMIC BANKING

In the year 1975, first commercial Islamic bank was set up

in Dubai.
By 1995, 144 Islamic financial institutions had been
established worldwide, including 33 government-run
banks, 40 private banks, and 71 investment companies.

Concepts: Islamic
Banking
Banking: BANKING IS RELATIONSHIP WHICH EXISTS
BETWEEN CUSTOMER AND THE BANKER, WHEREIN
CUSTOMER DEPOSITS MONEY AND IN TURN BANKER
PROVIDES INTEREST ON IT; ON THE OTHER SIDE OF THE COIN
BANKS PROVIDES LOANS AND CHARGES INTEREST ON IT.

Islamic Bankingisbankingor banking

activity that is consistent with the principles of

shariaand its practical application through the
development ofIslamic economics. As such, a
more correct term for 'Islamic banking' is
'Sharia compliant finance.

Principles of Islamic Banking

Talking about the principles of islamic

banking, the most important thing to be kept

in mind is Islamic banking is based on risksharing which is a component of trade rather
than risk-transfer which is seen in
conventional banking.
PROFIT SHARING(Mudharabah):