Highlights
The following issues are to be addressed in this essay critically.
1. What is Islamic Banking?
2. What is permissible under Islamic banking - halal vs haram. Rule of permissibility.
3. Prohibitions under Islamic banking: Riba (Interest), Gharar (Excessive uncertainty or speculation), gambling.
4. Western banking system vs Islamic Banking. Co-existence of western banks and Islamic banks
5. Islamic banking products: for example, Mudarabah (profit sharing, Musharakah (joint venture for fixed assets), Murabah (hire purchase of goods), Ijarah (leasing).
6. Islamic Banking Contracts: Wadia (property transfer for safe keeping, saving accounts): Hiwala (Debt transfer from one to another); Kafalah
(guarantee or accepting another person's debts); Rahn (pledge a property for collateral).
7. Pricing Transactions in Islamic banking.
8. Regulation and legality of Islamic banks: Authenticity of Shariah Boards.
9. Current status and practice of Islamic banks: Pakistan, Malaysia, UAE, UK.
10. Future of Islamic banking: problems and issues. – Performance, risk and efficiency
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