...Account-I based on Al-Wadiah Yad Dhamanah Product specification : 1) Savings Account-i is based on the "Wadiah Yad Dhamanah" principle, which refers to a contract between the owner of funds (account holder) and the Bank for safe keeping purposes. 2) The account holder as a depositor places his deposits on a trust basis. Maybank Islamic, as a trustee, guarantees the repayment of the whole amount of deposits or any part thereof upon request. Shariah contract : Al-Wadiah , Dhaman and Hibah Source Document Detail Checklist Audit Objective Wadiah contract i) The contract enables a person to entrust his asset to another person for the purpose of safe keeping. ii) The Islamic bank act as the safe keeper or trustee for the fund deposited by customer. iii) The asset must be valuable, can be owned and deliverable iv) The asset can be possessed physically To determine Wadiah yad Dhamanah contractual conditions are met Depositors Account i) The Islamic bank (IB) obliged to guarantee the deposit. ii) The IB can utilise the money of depositor iii) The IB has right to any income derived from utilization of depositor account. iv) The depositor are not entitle to any share of profit but the depository may provide return to the depositor as a token of appreciation To ensure the right of depositor account and to know the activities involved on depositor account The bank Obligation i) The Islamic bank needs to replace the wadiah asset due to their...
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...1. Introduction History of Islamic Business Transaction Without a doubt, the history of Islamic Banking is quite interesting. Since the medieval era (1,000 – 1,500 AD), businesspeople in the Middle East engaged in financial transactions. At this time though, these transactions used the same financial principles as the Europeans. Early History of Islamic Banking Since the Arabs of the Ottoman Empire traded extensively with people in Spain, they also developed certain no-interest financial systems that worked on a profit and loss sharing method. These systems, in turn, financed trade and other business affairs. When the Middle Eastern and Asia began to be more important trading partners for various European companies, the Europeans opened banks in these countries – with many of these banks based on the interest-bearing financial system. As the trading relationship with the Europeans continued to play an important role, these types of financial institutions began to be more prominent outside of Europe. However, even when local trading business owners used these commercial banks, they often only transferred money between accounts. Both borrowing and depositing money was limited as the local population wanted to refrain from partaking in interest-bearing transactions. Further, certain co-operative institutions based on the original profit and loss sharing model still existed, but only in certain locations. As economic demands increased, avoiding banks was not an option...
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...Assignment on: Islamic Banking Submitted to: Md. Alamgir Hossen Assistant Professor IBA – JU Submitted by: Tanjim Mahmud 21st Batch ClassID – 1564 Institute of Business Administration Date of submission: 14/05/2014 Islamic banking is banking based on Islamic law (Shariah). It follows the Shariah, called fiqh muamalat (Islamic rules on transactions). The rules and practices of fiqh muamalat came from the Quran and the Sunnah, and other secondary sources of Islamic law such as opinions collectively agreed among Shariah scholars (ijma’), analogy (qiyas) and personal reasoning (ijtihad). Shariah concepts in Islamic banking: The common Shariah concepts are as follows: Wadiah (Safekeeping) : Wadiah means custody or safekeeping. In a Wadiah arrangement, customer will deposit cash or other assets in a bank for safekeeping. The bank guarantees the safety of the items kept by it. Here is how it works: 1) Customer places money in a bank and the bank guarantees to return the money to customer. 2) Customers are allowed to withdraw the money anytime. 3) Bank may charge customer a fee for looking after customers money and may pay hibah (gift) to customer if it deems fit. 4) This concept is normally used in deposit-taking activities, custodial services and safe deposit boxes. Mudharabah (Profit sharing) Mudharabah is a profit sharing arrangement between two parties, that is, an investor and the entrepreneur. The investor will supply the entrepreneur with funds for his business...
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...Islamic Money Market Definition Most of the firms, company and individuals are seeking for the pure markets, which eliminate interest and other prohibited products. In consequence to this, Malaysia especially Central Bank of Malaysia has made an effort of making the Islamic Money Market as one of the vital market as compared to conventional money market. The underlying philosophy of the Islamic Money Market is to further strengthen the institutional structure of Islamic banking operations. Achieve through channeling surplus liquid resources for investment, and to meet short term liquidity needs. Market for trading short term Islamic Instruments that are liquid but also offer a return on the investment. Market also provides a pricing mechanism or platform form trading these instruments by communicating information to all participants. All instruments are “asset based” and therefore shariah compliant. The Islamic Money Market refers to the market where the activities are carried out in ways that do not conflict with the conscience of Muslims and the religion of Islam. Instruments in the Islamic money market shall be adhered to principles established by the Shari'ah or the Islamic law as revealed in the Qur'an and Sunnah. In Islam, it is required that all products involve in the sale and buying (including the instruments in the financial markets) shall be from the ethical sectors or in other words, the profits gained shall not be in or from the prohibited activities. These...
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...can identify an Islamic bank or an IBS bank from the logo below: 1 bankinginfo info perbankan Observing Shariah principles All Islamic banks and IBS banks have set up Shariah Committees to guide them on Shariah matters and to make sure that they function in a manner that is in line with the Shariah. In addition, the advice of the Shariah Advisory Council which is the highest Shariah body set up at Bank Negara Malaysia, can be sought to ensure uniformity in views and practices. The members of the Shariah Committees and the Shariah Advisory Council are academicians and Shariah experts in Islamic banking and finance. Shariah concepts in Islamic banking The common Shariah concepts are as follows: Wadiah (Safekeeping) Wadiah means custody or safekeeping. In a Wadiah arrangement, you will...
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...focusing on profit sharing in a day-to-day basis, or at weekends for three days. The deficit Islamic bank institutions can also invest money and make investment from the help of surplus Islamic bank institutions. Deficit must be financed meanwhile surplus must be invested. Thus, it can ensure that the cash is following the minimum reserve requirement. The money lends overnight to 12 months and can be borrowed for a short period of time. Wadiah Acceptance used the concept of wadi’ah yad dhaman (Guaranteed Custody) which refers to the Islamic bank institutions put their surplus fund with Bank Negara Malaysia (BNM). This instruments shows the transactions occurs between BNM and the Islamic bank institutions. Wadi’ah yad dhaman always be the most favorable choice in contemporary Islamic banking because the safeties when keeping on it are guaranteed since the resources are under the bank’s investments. The acceptor of funds will be viewed as the custodian for the funds. The custodian will have no obligation to pay for any return on the account. Wadiah Acceptance absorbs excess liquidity in Islamic banking system and be classified as one of the monetary policy instruments of BNM. Government Investment Issue (GII) was introduced under the concept of Qard al-Hassan in July 1983. GII is another form of marketable debt securities issued by Government of Malaysia to raise funds from the domestic capital market to finance the Government’s development expenditure. GII is the Islamic securities...
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...“Islamic Accounting : Their Position in International Standard Harmonization” Rendy Anggita Putra “Islamic Accounting : Their Position in International Standard Harmonization” 1. Abstract According to (Susela, 1999) said the development of accounting theories is are affected by several factors including political and economic interests of certain people or group in community. Therefore, it can be also called if the accounting is a significant tool to illustrate the interests and perspectives of the various stakeholders. Islamic industry of finance has obtained tremendous growth in last few years, both in number of assets that manage by industry and in the diversity of financial products. A global system that can rule the industry will become significantly important for the Islamic finance sector in order to meet the needs of continued growth (Vinnicombe, 2012). Harmonization of Shari’a accounting standards has continue to be made by the AAOIFI as it is also done by the International Accounting Standards Board (IASB) for conventional accounting harmonization. In its development, financial reporting in Islamic accounting adds some different additional reports than conventional accounting to accommodate the unique transactions of Islamic economics. In that regard, this paper have objective to explore the main important values of Shari’a accounting and reporting standards of Islamic Accounting and try to find the answers of Islamic accounting positions among the process...
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...REVIEW OF LITERATURE 2.1 Banking A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank links together customers that have capital deficits and customers with capital surpluses. Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had its roots in the ancient world. In the history of banking, a number of banking dynasties—notably the Medicis, the Fuggers, the Welsers, the Berenbergs, and the Rothschilds—have played a central role over many centuries. The oldest existing retail bank is Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank. In general terms, the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit is called banking. Money is normally lent out for a charge called interest. However, with the passage of time, the activities covered by banking business have widened and now various other services are also offered by banks. The banking services these days include issuance of debit and credit cards, providing safe custody of valuable items, lockers, ATM services and online transfer of funds across the country / world. However, with the passage of time, the activities covered by banking...
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...ADVANTAGES CONVENTIONAL BANK Banking sector constitute a major financial service sector affecting economic development. The stability and growth of any economy to a great extend depend on the stability of its banking sector. It functions as intermediary linking surplus and deficit units; facilitate funds for productive purpose and thereby contributes to economic development. Conventional banking based on interest prevails across the world. Islamic banking follows Islamic Shariah as the basis of operation. In both conventional banking and Islamic banking operates and offer its various products and services. While conventional banks offer its services that are interest based, Islamic banking services are interest-free and is based on profit-loss and risk sharing, and involve participation and sharing based Mudarabah, Wakalah (agent) contract, etc. In other words, Islamic banking followed an equity approach than interest-based approach in deposit and lending. Conventional bank or business bank is a type of retail banks that provide service, such as accepting deposits, giving business loans and basic investment products. A financial institution that provide services, such as accepting deposits, giving business loans, mortgage lending and basic investment products like saving accounts and certificates of deposits. The traditional commercial bank is as brick and mortar institution with tellers, safe deposit boxes, vaults and ATMs. However, some commercial banks do not have any physical...
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...AN INTERNSHIP REPORT ON STRATEGIES & PROCEDURES OF FUND COLLECTION AND ITS PERFORMANCE ANALYSIS: A STUDY ON EXIM BANK BANGLADESH LIMITED, KHULNA BRANCH . The Report is Submitted as a Partial Fulfillment of the Requirement of Bachelor of Business Administration SABYASACHI BOSU ID NO: BBA-060160259 DEPARTMENT OF BUSINESS ADMINISTRATION NORTHERN UNIVERSITY BANGLADESH JANUARY 15, 2010 AN INTERNSHIP REPORT ON STRATEGIES & PROCEDURES OF FUND COLLECTION AND ITS PERFORMANCE ANALYSIS: A STUDY ON EXIM BANK BANGLADESH LIMITED, KHULNA BRANCH The Report is Submitted as a Partial Fulfillment of the Requirement of Bachelor of Business Administration | |SUBMITTED BY: |UNDER THE SUPERVISION OF: | | | | | | |Sabyasachi Bosu |Md. Faruk Hossain | | |ID NO-BBA060160259 |Lecturer in Finance | | |Department of Business Administration |Department of Business Administration | | |Northern University Bangladesh ...
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...Introduction Bank introductions EXIM Bank (Export Import Bank of Bangladesh Limited) was incorporated on June2, 1999 as a private sector banking company under the company’s act 1994 and started its operations on August3, 1999. The bank has authorized capital of BDT 3.5 billion and a paid up capital of BDT 2.68. The bank is listed in both DSE and CSE. Company Details Business Operations -Sariah based Islami banking service Chairpersons-Md. Nazrul Islam Majumdar Directors-Md. Faiz Ullah, Nasima Akhter, A.K.M Nurul Fazal, Zubayer Kabir, Md. Habibullah, Md. Abdul Mannan. Company Secretary-NA Registered Office -Plot No. SE (F): 9, Road No. 142, Gulshan Avenue, Dhaka-1212. Website-www.eximbankbd.com Auditor -Hoda Vasi Chowdhury & Co Highlights of Performance The bank has migrated all of its conventional banking operations into Sariah based Islami banking since July, 2004. The bank is providing services through 52 branches all over the country with a total manpower of over 1400. The bank has correspondent relationships with 26 foreign banks. Investment of the bank other than loans and advances were limited to government treasury bills, prize bonds and shares and debentures, and total investment during 2008 amounted to BDT 2.9 billion and made a profit after tax of BDT 1.1 billion. ROA and EPS of the bank stood 1.83% and BDT 40.95 respectively. The bank has a total asset of BDT 77.7 billion at June 30, 20096. Operating income stood at BDT 1.67 billion for the period...
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...Introduction 1.1 Background of the Study Banking system occupies an important place in a nation's economy because of its intermediary role; it ensures allocation and relocation of resources and keeps up the momentum of economic activities. In a developing country like Bangladesh, the banking system as a whole has a vital role to play in the progress of the economic development. The demand , motivations and priorities of the consumers are the first crucial steps towards the improvement of customer satisfaction .And customer will satisfied if they get proper products and services . Deposits are the most important department of any bank. It consists of current, saving and fixed deposit transaction etc, the core objectives of deposit is to increase the economic growth of the nation. This department is very important for the bank, which requires knowledge based banking activities. No country can survive without a perfect Deposit mechanism, that’s why I put emphasis on this department. Quality customer service by Deposit department is essential to building customer relationships .The high level of customer loyalty depend on the quality of the core services. If a service provided by this department is not up to the mark then a company can lose its loyal customer. And it also can’t be able to get new customers. The department should use new technology and should develop new strategies for satisfying the customers. And if the manager and the department...
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...1. Introduction Assalamualaikum warahmatullah hi Wabarakatuh, although I’m spent considerable time together writing and researching for this task, it never ceases to amaze me about the hadis that connect to my field as an accountancy student. In this hadis, it related to Ar-Rahnu and at the same time, this hadis also related to bad debts. It gives me some guide to make a loan with whom and how to make it easy according to Islamic Shariah. In Ar-Rahnu matter, its show to us clearly about the differentiation between the Islamic and Conventional according to its characteristic and how to settle it up if have some problem within the period. 2. Hadis That Related That Related To Accountancy عن عائشة رضي الله عنها قالت : توفي رسول الله صلى الله عليه و سلم ودرعه مرهو نة عند يهودي بثلاثين صاعا من شعير 3. Biography Of The First Narrator1 3.1 Who is she? Marriage Particulars: Name : Aisya Siddiq Binti Abu Bakr as-Siddiq. Tribe Name : Quraysh. Status Before The Marriage : Bachelor Girl (She was the only Bachelor girl among the wives of the Rasulullah). Year of her marriage with Rasulullah : 10 Nubuwwat (10th Year of Prophesy) (Contradiction in Year). Rasulullah Paid Her Mahar : 500 Dirhams. Years With The Rasulullah : 9 Years. Date of...
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...Executive Summary: Any academic course of the study has a great value when it has practical application in the real life. Only a lot of theoretical knowledge will be little important unless it is applicable in the practical life. So we need proper important unless it is applicable in the practical life. So we need proper application of our knowledge to get some benefit from our theoretical knowledge to make it more fruitful. When we engage ourselves in such field to make proper use of our knowledge in our practical life only, then we come to know about the benefit of the theoretical knowledge. This report is on a study of the General Banking” of Shahjalal Islami Bank Ltd. Uttara Branch. Sahajalal Islami Bank Limited is a private commercial bank, which is 6th Islamic Shariah based bank in Bangladesh. The Bank started its operation on 10th May 2001, during this period it could improve its image in the society as an Islamic Bank. Now it has 26 branches in Bangladesh. All branches are situated in the highly demanded areas. As a new bank, Shahjalal Islami Bank Limited has been competing with other private banks where all the banks are adopting different incentive programs to attract the customers. Accordingly, SJIBL is offering different type of deposit scheme bearing highest rate of return. Mudarabah Deposit Scheme, Monthly income scheme and Millionaire scheme, Double Benefit Scheme are the most popular offers that are completely new innovation in the banking sector and widely...
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...REPORT ON Overall Banking system of Al-Arafah Islami Bank Ltd-Focusing on General Banking Chapter 1: Introduction Bank is important financial intermediary in the economy. It plays crucial role of transferring the resources from surplus area to the surplus area to the supply constraint area. Bank performs its job through introducing various financial products and services to the market. Among them loan is the most crucial product .Loan is the product that generates major profit for the bank. Since, banks receive deposits from lenders at a certain interest rate and give the loan at the higher interests. The private banking industry is at its growth in Bangladesh. In August 1974, Bangladesh signed the charter of Islamic Development Bank and committed itself to reorganize its economic and financial system as per Islam Ice Shariah.Bangladesh government subscribed recommendation of Islamic Foreign Minister’s conference held in Senegal in 1978 regarding systematic efforts to establish Islamic banks in the member countries gradually. In January 1981, the then president of the People’s Republic of Bangladesh while addressing the 3rd Islamic Summit Conference held at Makkah and Taif suggested, “The Islamic countries should develop a separate banking system of their own in order to facilitate their trade and commerce.” Earlier in November 1980, Bangladesh Bank, the country’s Central Bank, sent a representative to study the working of several Islamic banks of different countries....
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