My Dear Students

Happy new Academic Year 2020

This is the first assignment in Islamic Finance course. Please read carefully the requirements and
submit your assignment on the due date.

Required:

You are kindly requested to select one Islamic Bank and one Conventional Bank at any country
and compare between both of them from services perspective.

Islamic banks (El-Barka bank) Conventional bank (CIB bank)

Islamic bank is based on principals of shariah law Conventional banks are based on fully man-made
principles
Profits are shared between the bank and the debtors Depositors are guaranteed a predetermined rate of
according to a pre-agreed ration and these profits return (Interest).
are not guaranteed.

It also aims at maximizing profit but subject to It aims at maximizing profit with only legislative
shariah and legislative restrictions. restrictions.
Participates in partnership and joint ventures with Lend money with a predetermined rate of return.
customers. E share in profit, and assume losses
incurred by customers.

The relationship of ana Islamic bank with its client The relationship of the bank with its client, is that
is that of partner, investors and entrepreneur buyer of creditors& debtors.
and seller.