Islamic Banking

(redirected from Wadiah)
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Islamic Banking

A system of banking that only offers products that conform to the sharia, or Islamic law. For example, in Islamic banking, checking and savings deposits 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 Islamic banking products are in fact sharia-compliant.
References in periodicals archive ?
The giro accounts in sharia banks are managed under deposit system known as Giro Wadiah, as basically, giro accounts are public funds held by banks, used as a means of payment and could be withdrawn any time.
Wadiah has started receiving packaging materials from Israel in recent weeks.
Both Jaiz and Stanbic IBTC currently offer two basic retail current and savings accounts to any clients interested in ethical faith-based financial products based on the Wadiah (savings) and Mudaraba (trust financing) concepts.
Related to the policy dummy, Central Bank of Indonesia replaced sharia-based monetary instruments of Bank Indonesia Wadiah Certificates (SWBI) to Bank Indonesia Certificates Sharia (SBIS) in April 2008 in order to create fair treatment between Islamic and conventional banks.
Beaconsfield looked to get back into the tie but Cross and his rearguard stood firm, the shot-stopper making a couple of vital stops while Wadiah cracked a fierce shot into the side-netting.
Giro account in sharia banks is managed with the system of trust called Giro Wadiah, as basically giro funds are public funds in banks that could be withdrawn any time.
So far, the Government has approved the use of Wadiah, Murabahah and Mudarabah as modes of financing for Islamic banks.
Products include Wadiah - where the bank acts as the safe-keeper of deposits but may provide returns to the depositors as a gift; Murabahah, or partnership and equity financing; Ijarah - leasing; Musharakah - partnership and Bay' Bithaman al-Ajil - sale by deferred payment.
Islamic bank generally mobilise current account deposits using qard Al Hasan, Amanah or Wadiah contracts.
Wadiah returned Thursday night from Cairo where he had attended the signing of the surprise reconciliation agreement between Hamas and Fatah.
IBB's initial product profile was wholly inadequate, concentrating on current accounts based on the Wadiah concept and the odd savings products, usually based on the Commodity Murabaha transactions.
On its plan to introduce guidelines for a uniform application of popular Islamic financing structures, Bank Negara said it would finalise rules for the Ijara, Mudaraba, Musharaka, Istisna and Wadiah contracts by end-2010.