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 ?
Giro, which is a facility to put money in rupiah for future transactions managed under the principle of wadiah yad dhamanah; and syndication service.
Wadiah also said talks would begin next week on picking the prime minister of the interim government.
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.
al-qardhul hassan (loan without interest, but the borrower pays service charge) and wadiah yad dhammanah (keeping valuable goods by guarantee).
Figure 3-5: Wadiah Demand Deposits with Islamic Commercial Banks (Billion Rp), 2002-2008
The Islamic pawnbroker would accept the pledge on a wadiah concept where the pawnbroker promises to safe-keep the valuable pledge until the loan is settled.
Wadiah town in the Saudi-Yemen border is highlighted in this Google map.
The Saudi Ministry of Transport (MOT) plans to build a dual carriageway between Najran, Sharurah and Wadiah in Najran, Saudi Arabia.
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as Giro Wadiah, as basically, giro accounts are public funds held by banks, used as a means of payment and could be withdrawn any time.
Wadih El Wadiah, the snack food manufacturer, has also been forced to adapt.