INTRODUCTION TO ISLAMIC BANKING AND FINANCE

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INTRODUCTION TO ISLAMIC BANKING AND FINANCE

• KELOMPOK 6
• Nina 0701103010008
• Rosa Reza Kusuma 0701103010010

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Islam Muamalah

• Islam is a religion that offers guidance on
  aqidah (faith and belief), shari'ah (practices
  and activities) and akhlak (moralities and
  ethics).
• Muamalah which is about man-to-man activities

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History and development of islamic banking

• 1973 intensive efforts to have economic and
  banking based on islamic laws and rules known as
  shariah.
• 1975 the first modern islamic banking in the
  world have been established.

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Development of islamic banking in malaysia

• 1980 LUTH (Lembaga Urusan Tabungan Haji),
  PERKIM and individuals have initiated actions
  toward the formation of islamic banking in the
  country.
• 1981 the government has established and
  appointed members of a committee.
• 1983 first islamic commercial bank Bank Islam
  Malaysia Berhad

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Islamic economic system

• Siasah (public) sector
• Tijarah (private) sector
• Ijtimak (social welfare) sector

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Riba or Interest

• Riba/usury is extra or excess in lending and
  borrowing or additional in term of weight or
  measurement in an exchange or a buy and sell
  transaction.
• Prohibited riba Al Quran in verse 278 and 279
  of Surah Al Baqarah.

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• The Sources of interest could be arising from
• A loan or debt (simple and compounding interest)
• A buy and sell transaction (weight and
  measurement is unknown or not predetermine)
• An exchange of currencies or any ribawi items.

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• Ribawi Items
• the currencies or medium of exchange and
  foodstuffs.
• Currencies are
• Gold
• Silver
• Currencies such as Ringgit Malaysia, US Dollar,
  British Pound, Singapore Dollar, Australian
  Dollar, Hongkong Dollar and Japanese Yen.

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• Foodstuff are
• Grain
• Meat
• Vegetable
• Fruit
• Condiment

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• There are four types of riba
• Riba Qard
• Riba Jahiliyah
• Riba Fadhl
• Riba Nasiah/Riba yad

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Muamalah Contracts

• Types of muamalah contracts
• Trading contracts.
• cash sale and
• credit sale transactions.
• Participation contracts.
• Capital or fund mobilisation contracts.
• Other supporting contracts.

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The End

• Thank you