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Islamic Banking

There are so many banks that have been established under Sharia Islamic religion around the world. Islamic banking (or participant banking) (Arabic: المصرفية الإسلامية‎) is banking or banking activity that is consistent with the principles of sharia law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees (known as riba, or usury) for loans of money. Investing in businesses that provide goods or services considered contrary to Islamic principles is also haraam ("sinful and prohibited"). Although these principles have been applied in varying degrees by historical Islamic economies due to lack of Islamic practice, only in the late 20th century were a number of Islamic banks formed to apply these principles to private or semi-private commercial institutions within the Muslim community. (Wikipedia)

In principle, the Islamic banking aims to avoid the way of money transfer that are not transparent expected to harm either party one day. Besides, there are some Islamic scholars which forbid bank interest earned based on the percentage of interest which have been determined. In this case if the interest obtained through investments in deposits by customers solely to get only bank interest. This interest is not derived from profit sharing between the bank and the customer itself. However, some Islamic scholars justify (allow) the bank interest earned customer if the customers only intended to save their money for security and not for the interest.

Religion Islam has explained the ways of doing business and mu'amalah based rules that have been described by the Qur'an in general and through the hadith and opinion of qualified Islamic scholars   specifically.

Here are profiles of some Islamic banks that are already operating in several countries:

Islamic Bank Of Britain (IBB) 
K's first FSA (Financial Services Authority) approved Islamic bank established Sept 2004
First standalone Islamic retail bank in the Western world
As the first stand-alone, Sharia compliant, retail bank in the UK to be authorised by the Financial Services Authority we aim to provide a friendly, inclusive and personal service for all our customers.

Emirates Islamic Bank
Launched in 2004, Emirates Islamic Bank was formed to provide the highest standards of Islamic banking services in the UAE. Following the highest standards of Shari'a compliance, set by our Shari'a Board, we offer a broad range of products and services, designed for individuals and small businesses as well as large corporations.

Our commitment to the principles of Shari'a means that we do things differently from the conventional banks in the market. Utilizing Islamic financing methods like Murabaha, Ijarah and Salam, we focus on avoiding uncertainty in our transactions. Our customers are our partners, and we work together to ensure that we deliver the best results for them and for the bank.

Qatar International Islamic Bank (QIIB)
Qatar International Islamic Bank (International Islamic) has come a long way since its establishment as a full-service bank committed to Sharia principles, on January 1, 1991. With 15 branches and offices at convenient locations and some 70 ATMs across Qatar, International Islamic is well-placed to provide a full array of Retail Banking and Corporate Banking services to its growing customer base in addition to the 24 hours Call Center and the internet banking service QIIB Connect.

Alliance Islamic Bank Malaysia Berhad
Alliance Islamic Bank Berhad commenced its Islamic banking business on 1 April after assuming the entire Islamic banking business portfolio of Alliance Bank. Products and services were distributed through the existing ABMB branch network, in addition, 2 Islamic Banking Centres (IBC) were set up in the Capital Square and Ampang Point branches. To date, there are 8 Islamic Banking Centres within the ABMB branch network located in Capital Square, Ampang Point, G Tower, Kota Damansara, Melaka, Kota Kinabalu, Penang and Johor Bahru.

Dubai Islamic Bank Pakistan Ltd.
Dubai Islamic Bank has the unique distinction of being the world’s first Islamic bank, a pioneering institution that has combined the best of traditional Islamic values with the technology and innovation that characterise the best of modern banking.

The Lebanese Islamic Bank (LIB)
The Lebanese Islamic Bank (LIB) is a joint stock company established in early 2005 with a capital of LBP 30 billion. LIB was the first Islamic bank in Lebanon to be licensed by the Central Bank under the law no. 575 dated February 11th 2004. LIB is registered under number 126 on the Central Banks list of Lebanese Banks. LIB headquarters are located at the Liberty Tower Bldg., Roma Street, Hamra, Beirut. LIB principal activities consist of providing banking products and services that are in conformity with Islamic law or Sharia.

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