... Acknowledgements First and foremost, I would like to thank my family – mother, father and my siblings – for their undying love. I would never have come so far without them. I would also like to take this opportunity to thank my supervisor, Dr. Humayon Dar, for his insightful guidance and for always being welcoming and patient with my unannounced visits throughout the year. This dissertation would never have been produced otherwise. Last but not least, I would like to thank my friends at Loughborough University that have made my summer of 2004 all the more memorable. For everything that is right, credit goes to all of the above. For anything that is wrong, I am culpable. Ali Arsalan Tariq September 2004 2 TABLE OF CONTENTS I. Introduction II. Islamic Financial Assets: Overview of Theoretical Aspects 2.1 Prohibitions 2.1.1. Prohibition of Riba (Interest) ` 2.1.2. Prohibitions of Gharar (Excessive Uncertainty) 2.1.3. Avoidance of Unethical Investments and Services 2.2 Alternative Basis of Financial Instruments 2.2.1 Partnership Contracts 2.2.2. Exchange Contracts 2.2.3. Financial Assets III. Evolution and Profile of Sukuk Structures and Markets 3.1 Types of Sukuk 3.1.1 Pure Ijarah Sukuk 3.1.2. Hybrid/Pooled Sukuk 3.1.3. Variable Rate Redeemable Sukuk 3.1.4. Zero-coupon non-tradable Sukuk 3.1.5. Embedded Sukuk 3.1.6. Expanded List of Sukuk 3.2 Recent Developments in Sukuk Markets 3.3 Cases: Ijarah: Sovereign Sukuks 3.3.1 Qatar 3.3.2 Malaysia 3.3.3 Ijarah Corporate Sukuks: Gutherie 3.3.4...
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...whole scenario was the relative stability of Islamic Financial Institutions (IFIs). In the last decade, IFIs have witnessed an impressive growth and have begun to make an impact on the current financial setup. This paper aims to highlight the basic foundation of Islamic financial system and the development of different markets and institutions. It will then point out certain issues and challenges facing the Islamic Financial Institutions. HISTORY Early History: The history of Islamic Financial system goes back to 1,000 – 1,500 AD, during which the Middle Eastern tradesmen would engage in transactions based on Shariah. During that time, the Ottoman Empire Arabs had good trade relationships with the Spanish, and they established their financial systems without interest, based on profit and loss sharing basis. As time went by, Middle Eastern and Asian regions became important trading partners for European companies such as the Dutch East India Company, as a result of which European banks started to spread their branches in these countries, which typically were interest-based. Thus the conventional financial institutions became more dominant as Western countries started to play an important role in world economy. Although, credit unions and co-operative societies based on profit and loss sharing system continued to exist, their activities were focused on very small geographical areas. Islamic Banking Practice, Early Initiatives: Islamic Finance started to grow radically in the...
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...PRACTITIONER CONTRIBUTION Toward applied Islamic business ethics: responsible halal business Muatasim Ismaeel UniKL Business School, University of Kuala Lumpur (UniKL), Kuala Lumpur, Malaysia, and 1090 Katharina Blaim Faculty of Business and Economics, University of Eichstaett/Ingolstadt, Ingolstadt, Germany Abstract Purpose – The purpose of this paper is to explore the opportunities of using halal regulation and certification as a mechanism for applying Islamic business ethics in contemporary world. Design/methodology/approach – The current practices of halal regulation and certification and literature on Islamic ethics were reviewed, to identify a practical approach for Islamic business ethics. Findings – Islam allows and accepts different levels of ethical commitment. A multi-level Islamic ethics framework and a multi-level halal certification approach are proposed to facilitate the implementation of Islamic business ethics in a relative context. Two major developments can enrich halal business practices: harmonization of global standards and governance structure, and integrating responsibility and ethical issues in halal standards. Practical implications – The proposed framework and developments can enrich halal regulation and certification practice. Originality/value – The paper emphasizes the importance of flexibility and adaptability in Islamic business ethics implementation, and proposes a new framework and approach to apply Islamic business ethics. Keywords Islam,...
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...49 4.2 FOREIGN EXCHANGE: 49 4.3 Functions of Foreign Exchange Department: 50 Exports: 50 LIST OF ILUSTRATION Executive Summary Islamic banking is relatively a new concept in the world. Before the inception of Islamic banking phenomenon, banks were institutes to be avoided by the millions of Muslims. Keeping aloof themselves from banking, Muslims began to loss their market in the world economy. As the competition the business world became more and more severe, businesspersons had no alternative banking premises and many of them were getting involved in the traditional banking. However, the traditional banking is based on interest, which is fully prohibited in Islam. To overcome this problem, Muslim scholars, philosophers, economists etc. were thinking to establish a new interest-free banking structure right from the 1940’s. At last, they succeeded to formulate an appropriate Islamic banking structure. Many previous studies have been done in this regard. Islam is a complete code of life. It does not allow anything to be done in unislamic. So Islamic banks do not give more importance only on earning profit but also try to ensure...
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...49 4.2 FOREIGN EXCHANGE: 49 4.3 Functions of Foreign Exchange Department: 50 Exports: 50 LIST OF ILUSTRATION Executive Summary Islamic banking is relatively a new concept in the world. Before the inception of Islamic banking phenomenon, banks were institutes to be avoided by the millions of Muslims. Keeping aloof themselves from banking, Muslims began to loss their market in the world economy. As the competition the business world became more and more severe, businesspersons had no alternative banking premises and many of them were getting involved in the traditional banking. However, the traditional banking is based on interest, which is fully prohibited in Islam. To overcome this problem, Muslim scholars, philosophers, economists etc. were thinking to establish a new interest-free banking structure right from the 1940’s. At last, they succeeded to formulate an appropriate Islamic banking structure. Many previous studies have been done in this regard. Islam is a complete code of life. It does not allow anything to be done in unislamic. So Islamic banks do not give more importance only on earning profit but also try to ensure...
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...Welfare Services of Islamic Banks Introduction Welfare is a condition of having good health, comfortable living and pleasant working conditions (Hornby). Hence, it can be said that welfare services are those which ensure conditions of having good health, comfortable living and working conditions, which are generally one's basic needs. Islam views work as the primary means of earning and acquiring income and wealth. As such, a well-known example may be cited here, Recall a beggar who approached the Prophet Muhammad (Pbuh) for alms, he (the beggar) was asked to bring what he had in his house. Accordingly, the man brought a blanket. The Prophet (Pbuh) asked him to sell it out and buy an ax, which could then be used to cut wood from the jungle to sell at the market for income. Thus, instead of begging, he could be self-reliant which is more dignified life than begging. Therefore, in the Islamic way of life, productive and remunerative work (employment and self-employment) and consequently real income becomes the primary source for buying necessities such as food, clothing, shelter, household goods, transportation, fuel and medicines. But if real income is not sufficient to purchase necessities of life, then welfare services become essential in a society to maintain the minimum standard of living of the people. In fact, in every society, there are many people who lack the necessary income and, consequently, face inadequate lifestyles due to unemployment and under-employment. Their...
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...INTRODUCTION 1.1 Origin Of The Study Bachelor of Business Administration (BBA) is a specialized course on Business Administration. International Business Administration and Information System University (IBAISU) provide this specialized program to contribute efficient professionals in the business sector. IBAISU had designed this program with an excellent combination of practical and theoretical aspect. The whole program is divided in to twelve (12th) semesters. Out of the twelve semesters last semester (12th semester) is assigned for practical orientation. As a student of BBA with the requirement of my program I completed my internship program with the Islami Bank Bangladesh Ltd. (IBBL). I have tried my best to use this opportunity to enrich my knowledge on banking system. I have taken this opportunity to apply my knowledge, which I have learnt from my theoretical classes. I have tried my level best to present my experience of the practical orientation in this report. This report is also a requirement of my BBA program. 1.2 Objective of the Study Broad Objectives 1. The objective of the study is to gather practical knowledge regarding banking systems and operations, especially for loan and advances. 2. To gather the knowledge and idea about the business arena where there...
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...this research is to find out if Islamic Banking is a better alternative to the Western, Conventional Banking. The information provided will reveal various Islamic Banking principles that would have prevented previous major economic crises and if applied globally today could prevent a major economic collapse. Islamic Banking is banking system based on Shari'a (Islamic) Law on which it developed its unique characteristics that will be discussed in this paper. Shari'a Law does not allow the use of Interest (Riba), trading in financial risk, and investing in businesses that are considered unlawful according to the Quraan and Islamic scholars. Shari'a law in Islamic Banking is meant to promote economic and development through the means of disciplined investing, fair risk sharing, and profit or loss sharing (Warde, 2000). The literature that will be examined in this paper will show that Islamic Banking is a good alternative to the current global banking system, however, it will be near impossible to revamp the existing banking system and replace it with Islamic Banking because it goes against many of the core principles of conventional banking that the global economy is built on which has been around for decades. Brief History The main goal of Islamic banks was to promote social and economical welfare in society through guiding investors and offering financial assistance to businesses by engaging in profit sharing transactions (Warde, 2000). Islamic banks were thought of as more...
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...Abstract The objective of this study is to have practical knowledge on the Retail Banking services provided by the Private Conventional Banks and the Islamic banks in Bangladesh. Today, banks realize the importance of Retail Banking and its potential to help them acquire new customers, retain existing ones and maximize their lifetime value. this report provides an overall view of Retail Banking services in Bangladesh. the services provided by Private Conventional Banks and the Islamic banks are mentioned. Followed by are the products that are being used to provide these services. A trend of the retail banking services is done in the analysis part of this report. The Islamic banking concept is being adopted by some of the Private Commercial Banks to generate better understanding of the customer for product development, segmentation, appropriate targeting, campaign management and maintenance of long term profitable and mutually beneficial relationships with customers. The concept of Islamic Banking has been implemented on a vast scale. To meet the objective of the report a trend analysis of the retail deposit indicators,retail deposits and loans and advances is done in the fifth part of the report. there growth is also shown with line graphs. A comparison is also made between the PCB's retail banking services and that of IB's. In part six findings are listed and some recommendations are also made accordingly. Table of Contents Sl No | Topic | Page No. | 1.0 | Introduction1...
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...By S.M. Tanvir Ferdous Id: B033112 Department of Business Administration International Islamic University Chittagong, Dhaka Campus Spring 2008 -1- DOCUMENTARY CREDIT TRACKING SYSTEM OF IBBL An internship report submitted for the satisfaction of the requirements for the degree of BACHELOR OF BUSINESS ADMINISTRATION Submitted To Md. Shariful Haque Assistant Professor Prepared By S.M. Tanvir Ferdous Id: B033112 Date of Submission: January 5, 2008 Department of Business Administration International Islamic University Chittagong, Dhaka Campus -2- Letter of Transmittal January 5, 2008 Md. Shariful Haque Assistant Professor DBA, IIUC Dhaka Campus Subject: Submission of the Internship Report Dear Sir, I am glad to inform you that I have completed my internship report on “Documentary Credit Tracking System of IBBL”. I have gathered extensive knowledge while I was doing this report. Though there was some limitation and difficulties but I tried my level best to eliminate those limitations with your help and your guideline. Since this is my first full form of co-relational study, I tried my level best to finish this study as professional manure. I highly appreciate the opportunity to prepare this report. Yours sincerely, S.M. Tanvir Ferdous Matric NO- B033112 Batch- 17A Department of Business Administration International Islamic University Chittagong Dhaka Campus -3- Letter of Transmittal January 5, 2008 Head ...
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...BACHELOR OF BUSINESS ADMINISTRATION By S.M. Tanvir Ferdous Id: B033112 Department of Business Administration International Islamic University Chittagong, Dhaka Campus Spring 2008 -1- DOCUMENTARY CREDIT TRACKING SYSTEM OF IBBL An internship report submitted for the satisfaction of the requirements for the degree of BACHELOR OF BUSINESS ADMINISTRATION Submitted To Md. Shariful Haque Assistant Professor Prepared By S.M. Tanvir Ferdous Id: B033112 Date of Submission: January 5, 2008 Department of Business Administration International Islamic University Chittagong, Dhaka Campus -2- Letter of Transmittal January 5, 2008 Md. Shariful Haque Assistant Professor DBA, IIUC Dhaka Campus Subject: Submission of the Internship Report Dear Sir, I am glad to inform you that I have completed my internship report on “Documentary Credit Tracking System of IBBL”. I have gathered extensive knowledge while I was doing this report. Though there was some limitation and difficulties but I tried my level best to eliminate those limitations with your help and your guideline. Since this is my first full form of co-relational study, I tried my level best to finish this study as professional manure. I highly appreciate the opportunity to prepare this report. Yours sincerely, S.M. Tanvir Ferdous Matric NO- B033112 Batch- 17A Department of Business Administration International Islamic University Chittagong Dhaka Campus -3- Letter of Transmittal January 5, 2008 Head Department of Business Administration...
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...ADMINISTRATION By S.M. Tanvir Ferdous Id: B033112 Department of Business Administration International Islamic University Chittagong, Dhaka Campus Spring 2008 -1- DOCUMENTARY CREDIT TRACKING SYSTEM OF IBBL An internship report submitted for the satisfaction of the requirements for the degree of BACHELOR OF BUSINESS ADMINISTRATION Submitted To Md. Shariful Haque Assistant Professor Prepared By S.M. Tanvir Ferdous Id: B033112 Date of Submission: January 5, 2008 Department of Business Administration International Islamic University Chittagong, Dhaka Campus -2- Letter of Transmittal January 5, 2008 Md. Shariful Haque Assistant Professor DBA, IIUC Dhaka Campus Subject: Submission of the Internship Report Dear Sir, I am glad to inform you that I have completed my internship report on “Documentary Credit Tracking System of IBBL”. I have gathered extensive knowledge while I was doing this report. Though there was some limitation and difficulties but I tried my level best to eliminate those limitations with your help and your guideline. Since this is my first full form of co-relational study, I tried my level best to finish this study as professional manure. I highly appreciate the opportunity to prepare this report. Yours sincerely, S.M. Tanvir Ferdous Matric NO- B033112 Batch- 17A Department of Business Administration International Islamic University Chittagong Dhaka Campus -3- Letter of Transmittal January 5, 2008 Head Department of...
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...Issues And Problems of Islamic Banking An overview on the review of problems | | The Islamic banks face a number of challenges. First, they have not yet been successful in devising an interest-free mechanism to place their funds on a short-term basis. They face the same problem in financing consumer loans and government deficits. Second, the risk involved in profit-sharing seems to be so high that most of the banks have resorted to those techniques of financing which bring them a fixed assured return. As a result, there is a lot of genuine criticism that these banks have not abolished interest but have in fact only changed the nomenclature of their transactions Khan (1989). Third, the Islamic banks do not have the legal support of central banks of their respective countries (except in Pakistan and Iran), which exposes them to great risks. Fourth, the Islamic banks do not have the necessary expertise and trained manpower to appraise, monitor, evaluate and audit the projects they are required to finance. As a result, they cannot expand despite having financial liquidity.The future of Islamic banks hinges, by and large, on their ability to find a viable alternative to interest for financing all types of loans. They should recognize that their success in abolishing interest has been only partial and they have yet to go a long way in their search for a satisfactory alternative to interest. Simultaneously, Islamic banks need to improve their managerial capabilities by training...
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...ISLAMIC BANKING SYSTEM & PRODUCTS Name Course Instructor Institution Date Islamic banking Introduction Over the past decades, Islamic banking has expanded into a distinctive and fast growing competitive substitute to conventional banking in many countries. Despite the rapid expansion of the Islamic banking system in recent years, little is however understood of how it differs from conventional banking systems, especially in the non Muslim world. Although Islamic banking works in accordance with the Islamic laws (shariah), in other countries, they are allowed to operate incomparably with the conventional banks that are interest based. The desire of Muslim communities to reorganize their social economic activities, and revival of financial institutions such as Zakah on an interest free basis can be said to be the main drivers to the development of Islamic baking over the past (Wilson, 1994: 110). Nevertheless, Islamic banking is not a religious product as it may insinuate, but it can rather be understood as a series of growing financial products that are developed with the aim of meeting the requirements of Islamic culture and its people (Sole, J. A., 2007: 6). Thus theses systems have developed so as to enable Muslims to invest savings and equally raise finance without compromising their religious and ethical practices. In order to comprehend the fundamental principles of operation of the Islamic banking system, it is thus necessary to understand what it is. There is...
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...INTERNSHIP REPORT ON Marketing practices and policies of Al-Arafah Islami Bank Ltd. Rawnak Jamal Adnan. ID: 07882795 Department of Marketing, Jagannath University . To, Mr.Md.Mahathy Hassan Jewel Lecturer Department of Marketing Jagannath University, Dhaka Letter of Transmittal 15th October, 2012 Supervisor Mr.Md.Mahathy Hassan Jewel Lecturer Department of Marketing Jagannath University, Bangladesh. Subject: Submission of the internship working report. Dear Sir, With great pleasure I have prepared this Internship Report on Al-Arafah Islami Bank Ltd. Hopefully this report will provide you a good insight about the marketing practice in bank’s activities. It was a wonderful experience working on this report. I would, therefore, thank you for giving me the opportunity to undertake the preparation of this report. I am grateful for your kind co-operation and immense support. To prepare this report I have tried my best to accumulate relevant information from all available sources. Thanking you once again. Rawnak Jamal Adnan ID No: 07882795 Session: 2007-2008(2ND batch) BBA, Department of Marketing AL-ARAFAH ISLAMI BANK LIMITED Banani Branch, 16 Kamal Ataturk Avenue, Dhaka. Phone: 9822250...
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