In Islamic Banking, there are some banking practices are strictly prohibited by Islamic law.
some principles / laws adopted by the Islamic banking system are:
- Payment of loans with different values of the value of loans with predetermined values are not allowed.
of institutional efforts to borrow funds.
3. Islam does not allow the "make money from money".
Money is only a medium of exchange
and not a commodity because it has no intrinsic value.
4. Gharar element (uncertainty, speculation) is not allowed.
Both sides must know all too well
the results they would get from a transaction.
5. Investments should only be given to businesses that are not
forbidden in Islam. Businesses such as liquor should not be
funded by Islamic banking.
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