NAME : MUHAMMAD KHOIRIL FALAHIS SHUFI

NIM : 2102016009

CLASS : HKI A – 1

SUBJECT : ENGLISH

ISLAMIC FINANCE

Islamic banking There are several banking systems in the world, but the best known are
conventional banking and Islamic banking. The main functions of conventional banking can be
summarized in one sentence lend banks to lend to them lend in the form of deposits and lend
that money to earn Interest on the contrary, the Islamic banking system is based on the principle
of partnership in Islamic banking, shareholders , savers and borrowers.

Will all participate on the basis of profit sharing, Islamic banking framework, Islamic
banking is a financial management system based on the rules of Islamic Sharia. The main
concept of Islamic banking is the prohibition against collecting interest and using it for business
purposes. core norms underlying the concept of Islamic banking are:

The concept of Islamic banking has a reason no different from traditional account
management other than the fact that it works according to the guidelines of Sharia, known as
fikku ul mu`amlat banking in Islam, as a practical account must be reliably polished with Sharia
law and pragmatic applications to greatly improve aspects of Islamic finance e. This standard by
which Islamic banking has been recognized around the world for a long time, compared to
decades, these standards are not new, but rather unique to the country, they have changed the
concept of Islamic banking over hundreds of years.

In the early ages of islam the history of banking in islam dates back to the beginning of
the islamic benchmark in the 7th century the first wife of the prophet muhammad saw that
khadija was a merchant and he went as a st specialist for his business using many similar
standards used as part of the Islamic banking concept Contemporary medieval trade and business
activities in the Muslim world depended on Islamic rules as the standard for accounts and this
thought spread throughout Spain, the Baltic States and the Mediterranean, and was part of the
starting point for Western standards from the 1960s to the 1970s. Islamic banking system How
Islamic banking works It is important that you understand the rules for how Islamic banking
works.

Islamic scholars, the credit price of a commodity may in fact be higher than the cash
price of the Islamic OIC Fick Academy and the sharia advice of all Islamic banks agree on the
legality of this difference, but there is no additional price after mutual agreement considering the
end goal of raising money without premium fees Islamic banks using the framework of this
value carrier means that if bank c pays money to the company, the company will repay the
deposit without premium, but the bank will make its profit proposal if the company does not
pay in advance or does not make a profit the bank also does not make a profit is fully Islamic
banking sharia yes but only if it is applied according to the rules and regulations established by
the islamic sharia if an organization that does not follow the islamic rules is not allowed to claim
be your islamic bank.