Islamic Bank

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Islamic Bank

A bank that only offers products that conform to the sharia, or Islamic law. For example, deposits in Islamic banks do not accrue interest. They either lie dormant until withdrawal or are invested. Because this involves higher risk than conventional banking services, various highly technical products have been developed to mitigate risk and generally imitate "regular" banks as much as possible while still complying with Islamic law. Considerable debate exists as to whether these products are in fact sharia-compliant.
References in periodicals archive ?
MANAMA: Chief executives from leading Islamic banks operating in Bahrain organised a meeting to discuss the banking industry's growth, it was revealed yesterday.
It has been designed in collaboration with Shari'a scholars, Islamic finance specialists and Islamic banks.
The dual tranche facility comprised Murabaha and Wakala structures for which the participants were regional Islamic banks, Al Hilal Bank, Emirates Islamic Bank, Sharjah Islamic Bank and Qatar Islamic Bank.
He told the audience that last year SBP allowed 3 more conventional banks to initiate Islamic banking operations whereas 2 conventional banks had recently announced conversion into full-fledged Islamic banks over the next 2-3 years.
For creating awareness and better understanding among the media people, a two-day workshop on `Islamic Banking' for them has been organised by State Bank in collaboration with Islamic banks operating in Pakistan here at SBP Headquarters, which began on Monday.
Of the top 15 Islamic banks with a capitalisation of $1 billion or more, 13 of them are located in these rapid growth markets.
The Wakala agreement signed by the two banks is Shari'a compliant and follows the widely accepted OIFI (accounting and auditing organization for Islamic financial institutions) standards, making it easier for Omani banks to also engage with international Islamic banks for their interbank liquidity management.
The Wakala agreement signed by the two banks is Sharia-compliant and follows the widely accepted Accounting and Auditing Organisation for Islamic Financial Institutions (OIFI) standards making it easier for Omani banks to also engage with international Islamic banks for their interbank liquidity management.
There is a growing trend in Jordan whereas a large number of customers are shifting their business to Islamic banks.
In the absence of benchmark rates, Islamic banks continue to use the benchmark interest rates in offering profit rates -- which officials say, should change immediately.
The CBO in its regulatory and supervisory role will ensure full transparency in Islamic banking operations as the next phase of the Omani banking sector will be characterized by the positive contributions and growth of Islamic banks and window operations," he said Sheikh Khalid bin Mustahail al-Ma'shani, Chairman of Bank Muscat's Board said: "Bank Muscat strives to fulfill the needs of customers with Sharia' based innovative solutions and the launch of Meethaq is yet another proof of its commitment and dedication to meet customer expectations for Islamic banking.
Shaikh Nizam cleared the controversial talk regarding Islamic banks being only concerned with financing and neglecting investment.

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