Concept
Islamic banking and finance
Related concepts (21)
Profit and loss sharing
Profit and Loss Sharing (also called PLS or participatory banking) refers to Sharia-compliant forms of equity financing such as mudarabah and musharakah. These mechanisms comply with the religious prohibition on interest on loans that most Muslims subscribe to. Mudarabah (مضاربة) refers to "trustee finance" or passive partnership contract, while Musharakah (مشاركة or مشركة) refers to equity participation contract. Other sources include sukuk (also called "Islamic bonds") and direct equity investment (such as purchase of common shares of stock) as types of PLS.
Mu'amalat
Muamalat (also muʿāmalāt, , literally "transactions" or "dealings") is a part of Islamic jurisprudence, or fiqh. Sources agree that muamalat includes Islamic "rulings governing commercial transactions" and Majallah al-Ahkam al-Adliyyah). However, other sources (Oxford Islamic Studies Online, Brian Kettell, and Wahbah al-Zuhayli’) give it a broader definition including civil acts and in general all aspects of fiqh that are not Ibadat (acts of ritual worship such as prayer or fasting).
Wahhabism
Wahhabism (ٱلْوَهَّابِيَةُ) is a reformist movement within Sunni Islam, based on the teachings of 18th century Hanbali cleric Muhammad ibn 'Abd al-Wahhab (1703–1792) The term "Wahhabism" is primarily an exonym; it was not used by Ibn 'Abd al-Wahhab himself or adherents to the movement, who typically prefer to be called "Salafi" (a term also used by followers of other Islamic reform movements). The movement's early followers referred to themselves as Muwahhidun (الموحدون) derived from the term Tawhid (the oneness of God).
Bahrain
'Bahrain (bɑːˈreɪn ; bæxˈreɪn; al-Baḥrayn, locally æl baħˈreːn), officially the Kingdom of Bahrain', is an island country in West Asia. It is situated on the Persian Gulf, and comprises a small archipelago made up of 50 natural islands and an additional 33 artificial islands, centered on Bahrain Island which makes up around 83 per cent of the country's landmass. Bahrain is situated between Qatar and the northeastern coast of Saudi Arabia, to which it is connected by the King Fahd Causeway.
Islamic studies
Islamic studies refers to the academic study of Islam, and generally to academic multidisciplinary "studies" programs—programs similar to others that focus on the history, texts and theologies of other religious traditions, such as Eastern Christian Studies or Jewish Studies but also fields such as (environmental studies, Middle East studies, race studies, urban studies, etc.)—where scholars from diverse disciplines (history, culture, literature, art) participate and exchange ideas pertaining to the particular field of study.
Islamic finance products, services and contracts
Banking or banking activity that complies with Sharia (Islamic law)—known as Islamic banking and finance, or Sharia-compliant finance—has its own products, services and contracts that differ from conventional banking. Some of these include Mudharabah (profit sharing), Wadiah (safekeeping), Musharakah (joint venture), Murabahah (cost plus finance), Ijar (leasing), Hawala (an international fund transfer system), Takaful (Islamic insurance), and Sukuk (Islamic bonds).
HSBC
HSBC Holdings plc (in full: Hong Kong and Shanghai Banking Corporation) is a British universal bank and financial services group headquartered in London, England, with unique historical and business links to East Asia and a highly multinational footprint. It is the largest Europe-based bank by total assets, ahead of BNP Paribas, with US10.8 trillion in assets under custody (AUC) and $4.9 trillion in assets under administration (AUA).
Mortgage loan
A mortgage loan or simply mortgage (ˈmɔɹɡɪdʒ), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination.
History of banking
The history of banking began with the first prototype banks, that is, the merchants of the world, who gave grain loans to farmers and traders who carried goods between cities. This was around 2000 BCE in Assyria, India and Sumeria. Later, in ancient Greece and during the Roman Empire, lenders based in temples gave loans, while accepting deposits and performing the change of money. Archaeology from this period in ancient China and India also shows evidence of money lending.
Hawala
Hawala or hewala (حِوالة ḥawāla, meaning transfer or sometimes trust), originating in India as havala (हवाला), also known as havaleh in Persian, and xawala or xawilaad in Somali, is a popular and informal value transfer system based on the performance and honour of a huge network of money brokers (known as hawaladars). They operate outside of, or parallel to, traditional banking, financial channels and remittance systems. The system requires a minimum of two hawaladars that take care of the "transaction" without the movement of cash or telegraphic transfer.