Islamic Banking

(redirected from Islamic commercial banking)
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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 ?
At the same time earlier this year we capitalized KHCB at $265 million to position it to become a major force in Islamic commercial banking in the region in the near future."These strategic moves led to my request to the Board that in the best interest of both institutions, I relinquish my chairmanship of GFH Investment Bank, a role I have held since the banks' inception, and devote more time to the challenges of a growing bank in my continuing role as Chairman of KHCB, in addition to working with Esam Janahi who is Vice Chairman of KHCB."Janahi elected Chairman of GFH
In 2002, Al-Meezan Investment Bank stepped into the domain of Islamic commercial banking through the acquisition of Pakistan operations of Societe Generale and was issued the first Islamic commercial banking license and Al-Meezan was renamed Meezan Bank Limited.
That is hardly a surprise with some of the estimates circulating such as E&Y's recent prediction that global Islamic commercial banking assets would hit the $3.4 trillion mark by 2018.
The qualification aims to address the demand for skilled Islamic Finance professionals in a growing sector where according to the World Islamic Economic Forum (WIEF), the global Islamic commercial banking assets is expected to exceed by $2 trillion by 2014.
Titled 'In Search of New Opportunities', the report will examine the overall competitiveness of the sector, including its achievements and the challenges it faces; a new focus on the affluent high-net worth segment of Islamic banking; how to measure "real" performance; the present and future opportunities in the Takaful market; and strategies for Islamic commercial banking suites for SMEs (small to medium-sized businesses).
"This underlines our strategic objective to create a distinct identity that better reflects the bank's wider focus on the GCC region, and our commitment to provide a comprehensive range of innovative Islamic commercial banking services and high-end retail banking products.
This was the first ever license to be given for Islamic commercial banking in Pakistan.
'In this regard, we intend during the next phase to start opening branches in all major cities in Syria through which the bank will provide different Islamic commercial banking services.
The Bank started operations during 2002, after being issued the first-ever Islamic commercial banking license by State Bank of Pakistan (SBP).
At present, there are more than 600 Islamic banking branches throughout Pakistan and 19 Islamic banking institutions are offering Islamic commercial banking services.
Aside from Islamic commercial banking, the cooperative insurance industry has evolved considerably in the KSA during the past nine years.
He added that the bank's Islamic commercial banking operation has been growing in Singapore although the Muslim community makes up less than half of the population.

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