Islamic Banks

Mohamad Sabri Bin Haron,Naima Ismail

doi:10.24297/ijmit.v10i1.647

Abstract

Islamic banks has development in many aspects in practical performance of banks function, this was a limited activity in service Banks and commercial processes. Later, it came to They possess financial power and ability to create Islamic loans. They possess financial power and ability to create Islamic loans. Economical union supported by banks is not restricted to a domestic sphere, but has expanded internationally as its operations enjoy fidelity and fulfillment between banking organizations in different countries. As banking systems Islamic banks had developed, they are no longer restricted to role of being financial and service organizations, but have become money market within public sector. Furthermore, they follow up monetary flows and banking securities, by playing positive role of providing the organized money market with enough information about commercial activities. In addition, as a financial mediator who has adequate statistics about other economical units, besides its main role in creating successful development plans and riskless investment.

Highlights

According to Amin (1962) In modern era first attempt to create Islamic bank began in Egypt in 1963 with experience of banks, domestic savings, which was founded by Dr, Ahmed al-Najjar in Town of Mit Gammrah, Dakahliya, where expansion of its activities spread to about 53 villages and remained constant almost more than three consecutive years, until it was merged with National Bank of Egypt in 1968, and was followed by idea of establishing Nasser Social Bank in 1971, which provided law from its inception not to treat benefit of all forms of introduction, or tender, was a printer social owned full of Egyptian state
Objectives of Islamic banks: Tayel (1998) pointed out that Islamic banks offer and provide banking investment services in light of Islamic rule and law (Sharia) and in accordance to following objectives: Financial objectives: Islamic bank applies principle of participation through financial intermediation, than waterless deposits and their development in accordance with rules of Sharia law, which states that, no hoarding of funds and investing them in a disable, but due to members of community benefit of verse as Allah said in Holy Qur'an(Allah, legitimate the sale, and forbidden Riba). (Abdullah, Y.,1987, Holy Qur'an translation to English, Surat Al-Bagara, Reverse, Chapter 275)
Islamic Banks Services: Mahmud, H (1992) further argue that, Services of Islamic banks, main interface for clients with World Bank, one of most important means to attract new customers and maintenance of present dealers, so we find a gateway to handle different activities of Islamic Bank, importance of these services back dated from all arising income which is resulted from their income which is low-risk

Summary

Objectives

Objectives of Islamic banksTayel (1998) pointed out that Islamic banks offer and provide banking investment services in light of Islamic rule and law (Sharia) and in accordance to following objectives: Financial objectives: Islamic bank applies principle of participation through financial intermediation, than waterless deposits and their development in accordance with rules of Sharia law, which states that, no hoarding of funds and investing them in a disable, but due to members of community benefit of verse as Allah said in Holy Qur'an(Allah, legitimate the sale, and forbidden Riba). (Abdullah, Y.,1987, Holy Qur'an translation to English, Surat Al-Bagara, Reverse, Chapter 275).1- Investing funds of depositors or shareholders, creating opportunities, modes of investment commensurate with individuals, institutions in order to achieve profits for all parties and in accordance with legality of investment funds for saying Almighty (O ye who believe, do not consume your property among yourselves unjustly except it be a trade amongst you do not kill yourselves, Allah is Merciful to you.).( Abdullah, Y.,1987, Holy Qur'an translation to English,, Surat Al-Bagara, Reverse, Chapter 219)2- A profit according to Islamic law and norms of bank can compete and continue in banking market.Customer Objectives: Development of values ideological, principles of behavioral, Islamic workers and dealers alike, to purify it from corruption, where he says 1- Investing funds of depositors or shareholders, creating opportunities, modes of investment commensurate with individuals, institutions in order to achieve profits for all parties and in accordance with legality of investment funds for saying Almighty (O ye who believe, do not consume your property among yourselves unjustly except it be a trade amongst you do not kill yourselves, Allah is Merciful to you.).( Abdullah, Y.,1987, Holy Qur'an translation to English,, Surat Al-Bagara, Reverse, Chapter 219). 2) Bank should provide liquidity to customers on request and in case of permanent workers to achieve confidence of customers and work on coordination and cooperation between economic units within community pursuant to saying of Almighty (And keep with the Rope of Allah and be not divided among yourselves).( Abdullah, Y.,1987,Holy Qur'an translation to English, Surat Al-Emran, Reverse, Chapter 103). Islamic banking services are divided into two parts: Services which include credit operations: its processes which are subject to credit studies, where Islamic banks are implemented as processes main objective of investment, including investment

Methods

Conclusion