Finance Report

Research Assignment Topic:
Measuring Growth and variegation in Muslim pay


Findings-the purpose of this research subsidisation is to evaluate & investigate those factors that affect growth in islamic pay and diversificate people towards conventional banking.

Introduction
Muslim finance in the theory and practice
Defining islamic finance

Islamic financial institutions be those that are based, in their objectives and operations, on Koranic principles. They are thereof set apart from conventional institutions, which have no much(prenominal) preoccupations. This definition goes beyond simply equating Islamic finance with interest-free banking. It allows to take into account operations that whitethorn or may not be interest-free, but are nonetheless imbued with certain(p) Islamic principles: the avoidance of riba (in the broad sense of unjustified increase) and gharar (uncertainty, risk, speculation);1 the focus on halal (religiously permissible) activities; and more generally the pursuance for justice, and other ethical and religious goals. Two aspects of Islamic finance mustiness be singled out. First is the risk-sharing philosophy: the lender must share in the borrowers risk.



Since fixed, predetermined interest rate guarantee a return to the lender and fall disproportionately on the borrower, they are seen as exploitative, socially unproductive and economically wasteful. The preferred mode of financing is profit-and-loss sharing (PLS).
Second is the forward motion of economic and social development through specific cable practices and through zakat (almsgiving).
Most but not all Islamic institutions have a Shariah board a direction of religious advisers whose opinion is sought on the acceptability of newly instruments, and which conduct a religious audit of the banks activities as well as other features2 reflecting their religious status. In sum, the defining difference is that while conventional finance ordinarily seeks profit maximization within a given...If you want to piss a full essay, order it on our website: Orderessay



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