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What are the objectives of Islamic banking

The fundamental objectives of Islamic Banking is to bring about departure from conventional banking from a debt-based relationship to an equity-based .

What are the objectives of Islamic banking

Objectives of Islamic banking :The fundamental objectives of Islamic banking is to bring about departure from conventional banking from a debt-based relationship to an equity-based stake-taking economy.While there are scopes for some debt-based transactions on the principal of quard-e-hasana, the overall thrust of the Islamic banking would be towards equity based and risk sharing agreements.This is the distinct from the capitalist approach whee the whole economy is revolved round making money by manipulating, managing the evils of interest and compounding interest mechanism.This is the root cause of exploitation in society and leads to the inequitable distribution of income and wealth in the economy. Generally the objectives of the Islamic banking are:

  1. Providing banking services of the highest standards according to Islamic Shariah without dealing in Riba (Interest on money) and by using the sate of art technology  in computer, telecommunication and information system.
  2. Investing funds prudently to achieve optimum profits for the mutual benefit of customers and the bank.
  3. Coordination, cooperation and integration with other financial bodies that apply Islamic Shariah in their dealings, in order to support creating a base and regulations for an Islamic financial system.

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Objectives of Islamic banking

  1. Development of the Islamic society in all fields of the economy by investing in industries, agriculture, commerce, and real estate in order to provide job opportunities
  2. Promotion of social benevolence through its Islamic methods, particularly through Zakah.
  3. Contributing to the  welfare of society in line with the five main tenets  of Islam. namely protection of life, purity of property, honour and social justice.
  4. Promoting the saving habit and encouraging people to invest wisely within the parameters of Islamic Shariah through  investment and finance instruments to suit individual requirements.
  5. Making available the necessary capital for entrepreneurs for the establishment of economic projects and creation of alternative instruments   for finance according to Islamic Shariah.
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Banking Keywords

Banking Keywords   Analyzed credit card, loan application process, customer satisfaction, Analyzed financial accounts,senior management.Assessed profitability, financial statements,short‐term contract employees, Authorized business plan, Fixed Assets Analysis, fixed asset acquisition.efficient service.loans,high‐risk …

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Definition of a Customer

The term “Customer” of a bank has not been defined by any law. According to Sir John Paget, “to constitute a çustomer there must some recognisable course Definition of a Customer The …

 

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