Mid Term Assignment SPRING 2020

Student’s Name__Muhammad Sameer___________________

Registration Number __1711146_______________

Program: BBA Class: BBA-6 (B)

Submission
Course Name: Islamic Banking and Finance Deadline: 26/4/2020
Instructor’s Name: Hussain Khawaja Total Marks: 15

Course Code: BA4701 Sharing Date: 17/4/2020

IMPORTANT instructions:
 Read all the questions carefully and then solve in this file.
 Marks of each question are mentioned at the end of each question.
 Solved Assignment must be mailed to the respective faculty by the due date and in Word Format
Document. (No scanned or Picture Format File will be acceptable).
 Non-submissions of the assignments will be considered as absent for the Midterm and will be
marked “0” on ZABDESK Recap Sheet.
 While checking of the Assignment, SZABIST Plagiarism policy is to be followed.
 Group assignments are not allowed.
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ASSIGNMENT QUESTION STARTS FROM HERE………….

Qno.1 Having read the details of the case, explain what you would expect the shariah perspective to be on this point of
Law? (5 Marks)
Qno.2 According to the Islamic jurisprudence, how Islamic Banking can be implemented globally? Base your
discussion on the basis on key features of Islamic banking and support your answer with example
(5 Marks)
Qno.3 If Islamic Banking System is implemented; discuss the change in the role of central bank with other banks and
banking system? (5 Marks)

Q1Ans: According to shariah law there should be 2 people at the time of deal. Both should accept
the offer and should be agreed on terms and conditions. And this company had 2 people at the
time of deal. When there is no one at the display of medicine but when the customer goes to make
payment so there is a person to guide the buyer and check the medicine. Shariah also says that
when there is a deal between two persons so both should be informed with all terms and
conditions. There are not doing anything wrong if anyone is buying something so they are buying
with their own well no one could do anything in that. In the light of shariah its right to do business
like this cause there is offer and acceptance and both parties are agreed at a point. This law protects
the right of both buyer and the seller. According to Islam if someone is doing contract so the both
parties should be agreed and they should have everything cleared at the time of contract. Boots
cash chemist did nothing wrong cause their contract or offer and acceptance was happening at the
time of payment on the counter.

Q2Ans: Islamic banking has two most important features 1 that there should not be any interest
And every partnership should be made with equal profit and loss percentage. When there will be
no interest so there will be more businesses. There will be more investment in the business sector.
When there will be more business so there will be more opportunities for employment. The gap
between rich in poor will decrease. Interest create more gap between rich and poor. There will be
poverty globally people will have more money to spend. People will not stuck free money in bank
they will invest it and will try to do more businesses
is on 2 thing 1 interest free and 2 it work on profit and loss.
Where there will be no interest so there will be no gap in poor and rich
Business will establish when there will be profit and loss sharing.
Q3Ans: If Islamic banking is implemented globally first thing which will be effected is monetary
policy. Cause there will be no interest in monetary policy. When there will be no interest rate so
the money will not be controlled with interest rate. Inter banking borrowing will be based on
Islamic law which will be profit sharing. After that the effect will spread to commercial banks. The
portfolio of commercial banks will be also changed. First they will not have interest so their every
investment will be based on profit sharing. Things like loaning of personal products like car house
etc they will be rent out. As after this there will be no KIBOR or LIBOR so stock market will also
work with profit and loss sharing. The offering of commercial banks will be changed there will be
no fixed accounts cause keeping your cash in account wont profit you. These will the first few
effect of implementing Islamic banking but some of the rolls of state bank will be same as they
will be the only authority to print money. They will be still the head to keep reserves and
accountancy of commercial banks. They will control money flow of market.