ISLAMIC BANKING AND

FINANCE
13 January 2009
Lovely Professional University

Presented by:
Mohammad-Ehsanul-Haq
Student
Lovely school of Business
• Need of Islamic Banking:
•
• In response to the needs of Muslim community
•
• Acts as a catalyst to fill the gap to mobilise funds
for productive purposes, in particular for Muslim
communities
•
• Significant untapped business potential
•
• Proven to be a viable financial
intermediation channel in supporting
economic growth
•
• Fulfilled the demands of not only the
Muslims but non-Muslim population as
well
 Barrak Hussain
obama
•Islamic financial transactions based on Shariah principles:
•Contract (aqad)
•No elements of usury (riba)
•No elements of uncertainty (gharar) and gambling
(maisir)

Presently ….

•Rapid growth of Islamic banking in the global financial

world

•Various parts of the world are actively promoting Islamic

banking and finance in their respective jurisdictions

•Emergence of global conventional players venturing into

Islamic financial activities
•

•
 INVESTMENT ACCOUNTS

DEPOSITORS/ INVESTORS BANK

INVEST FUNDS

(MUDHARABAH)

Pre-agreed Profit- 30%

Sharing Ratio FINANCING AND
INVESTMENT ACTIVITIES

70%
PROFIT
PROFIT
100% LOSS
LOSS
THANK YOU