Saturday, December 29, 2012

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.

The Islamic Research Foundation (IRF)

The Islamic Research Foundation (IRF), which was established in February 1991 in Mumbai, India is a registered non-profit public charitable trust. IRF become the seat of the Islamic da'wah in order to remove the misconceptions about Islam and to enhance the understanding of Islam among Muslims who are less aware.

To carry out activities, IRF uses advanced technology viable so it can be accessed from anywhere and by anyone as through various presentations on international television, cable TV, internet, and print media. Activities that dikaukan The Islamic Research Foundation provides much needed understanding about the truth and excellence of Islamic teachings - based on the glorious Qur'an and authentic Hadith, and follow reason, logic and scientific facts. If we want to gain knowledge and to gain an understanding of Islam through the internet, we are able to access Islamic Research Foundation through

On the site everyone (Muslims and non-Muslims) can easily find important information about the religion of Islam through an article written by a qualified resource persons and through Dawah delivered via video. For some people in the world including Muslims may be somewhat difficult to understand the religion of Islam, and therefore at the Islamic Research Foundation, the reader can compare other religions with Islam based on logical reasoning, theories, and facts. They are Christianity, Judaism, Hinduism, Buddhism, Sikhism, Zoroastrianism and Atheism.

Through videos and articles written by people who are qualified and really have a grasp of Islam, including the understanding of the Qur'an and Hadith in which Dr. Zaakir Naik, Ahmed Deedat, A. Raheem Green, Fazaga Yasir, Yasir Qadhi, Fariq Up, Hussain Yee, Salem Al Aamry, Saeed Rageah, Assim Alhakeem, Ziaullah Khan, and Yusuf Estes. They all provide an explanation of Islam that is easily understood by logic and facts.

Activities of Islamic Research Foundation

Islamic Research Foundation Ladies' Wing Introduction
The IRF Ladies’ Wing strives exclusively for and amongst the ladies, Alhamdulillah, with activities and programmes for Islamic Da’wah and understanding, as well as practicing and promoting the message of Islam pragmatically. It is backed up by the technology and facilities and services, as feasible for ladies, as those available in the other Islamic Research Foundation departments.

The IRF Ladies' Wing regularly organises seminars, debates, symposia, workshops, group and panel discussions, elocution competitions, quiz competitions, training workshops, Islamic skits, etc.

Ladies' Wing Activities
The IRF Ladies' Wing provides information, literature, reading library facilities and clarifications on issues of Islam and Comparative Religion.

It also manages the Islamic Research Foundation Children's Wing which operates on Saturdays between 4.00 p.m. and 7.00 p.m. during which children are taught Islamic values, etiquettes, manners, Islamic songs, Islamic games, etc.

Children's Wings
The IRF Children’s Wing (handled by the Ladies’ Wing) caters to the specialised needs of inculcating true Islamic ideals and practices in Muslim children, at their level of grasping. Its children’s programmes and learning and playing facilities for children include Islamic based Multimedia CD-ROMs, video and audio DVDs games and books for children.

Islamic Telecast
The IRF's TV talks and interviews, lectures, symposia and other Islamic programmes are telecast on international satellite TV channels to millions of people worldwide daily, in more than 125 countries of the world, including countries in USA, Europe, Africa, Middle East and Asia. In the city of Mumbai alone, Islamic programmes of IRF are relayed through cable TV networks to more than a million homes daily for about two to three hours

Production Studio
The IRF Satellite and Cable TV Production Studio manages the production of Islamic video programmes on Digi-Beta and Betacam formats for distribution to international satellite TV channels, cable TV networks, the IRF DVDs library and the IRF sales outlet.

Its hi-tech equipment include a digital 3CCD multi-camera set-up for Digi-Beta and Betacam recording and two AVID Media Composer non-linear editing systems with multi-cam and on line editing facilities, besides the Digi-Beta and Betacam linear editing systems and other broadcast equipment

Islamic Audio CD's
The IRF has a large collection of Islamic Audio CDs including complete recitations of the Glorious Qur’an by world renowned Qaris. It also has the English translation of the Glorious Qur’an by Abdullah Yusuf Ali. The IRF Islamic Audio CD Library has an exclusive collection for the children.

Islamic Audio DVDs
The IRF stocks a large collection of audio cassettes on Islam and Comparative Religion. These include lectures, T.V. programmes, interviews, documentaries, debates and symposia of renowned Islamic orators like Dr Zakir Naik, Shaikh Ahmed Deedat, Abdur Raheem Green, Yassir Fazaga, Yasir Qadhi, Dr. Abu Ameenah Bilal Philips and several others.

Video Library
The IRF stocks the world’s largest collection of more than 5000 titles of video cassettes on Islam and Comparative Religion (4000 in English, 600 in Urdu, 400 in Arabic and 100 in other languages). These includes lectures, T.V. programmes, interviews, documentaries, debates and symposia of renowned Islamic orators like Sheikh Ahmed Deedat, Dr. Zakir Naik, Dr. Israr Ahmed, Dr. Jamal Badawi, Dr. Abu Ameenah Bilal Philips and several others. These video cassettes, as well as many of them in the video CDs and DVD, format, are available to the public on free hire.

Research Library
The IRF has free facilities for the public which include computers for doing ‘da’wah’ on the internet and CD-ROMs use, DVD Player TV and Audio systems for viewing DVD and listening to audio DVDs / CD’s. It has a reading area for the reading of books and magazines from the tens thousands of books in English on Islam and Comparative religion, including texts and scriptures of the world's major religions as well as from the thousands of books in Arabic available at the IRF. It is also used as a Multipurpose Room for discussions, viewing the programmes in the auditorium (when it is full) through CCTV, etc.

The IRF handles the free distribution of more than 50 IRF publications on Islam all over India, on request. It dispatches complimentary copies of the Glorious Qur'ân, with Arabic text and English translation, as well as IRF’s  free literature on Islam to schools, colleges, and other institutions, as well as to interested people of other faiths all over India. It also handles other publishing and printing related activities of the IRF.

Islamic programmes, including lectures, talks, elocutions, quizzes, Da’wah training and educational sessions, screening of video programmes, symposia and debates with scholars of other religions, are regularly held in these auditoriums. IRF programmes are organised here every Saturday, Sunday and Monday. Special programmes too are held from time to time on other weekdays.

The IRF also uses this auditorium for holding exhibitions on Islam & Comparative Religion.

This auditorium is equipped with the state-of-the-art audio-video equipment, sound system and regular workshop facilities such as white board, overhead projector and facilities for projecting slides and powerpoint presentations.

The Auditorium is linked by closed circuit T.V. connection with the Ladies' Wing so that sisters can view the programmes live and also ask questions to the speakers. This auditorium is similarly linked to the multi-purpose reading and reference library which accomodates the spill over audience from the auditorium.

Public Talks
Public talks and interactions of international Islamic scholars are organised by the IRF in large auditoriums in India.

Regular symposia and dialogues are held between IRF Da'ees and scholars of other faiths. These help to promote a better understanding of similarities and differences in viewpoints and their relevance in coming to common terms and maintaining a peaceful co-existence.