Islam is the only Road to Safety World and the Hereafter

Showing posts with label Laws on Islamic Banking. Show all posts
Showing posts with label Laws on Islamic Banking. Show all posts

In Islamic Banking, there are some banking practices are strictly prohibited by Islamic law.
some principles / laws adopted by the Islamic banking system are:

  1. Payment of loans with different values ​​of the value of loans with predetermined values ​​are not allowed. 
     2.  Funders should also share the profits and losses as a result  
          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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