Definition

Islami Banks

Islami banks do business of banking as commercial banks but it is on the basis of Islamic Shariah or Islamic principles and guided by Islamic economics.

Two basic principles behind Islamic banking are

 - the sharing of profit and loss and,

 - significantly, the prohibition of the collection and payment of interest.

 

 

Share it:  Cite

More from this Section

  • Credit Risk
    The risk that the promised CFs (Cash Flow) from the assets (loan of different types) & ...
  • Loss ratio method of rating
    Loss ratio method of rating is a rating system in property and casualty insurance by which ...
  • Pure premium method of rating
    Pure premium method of rating is a rating system used in property and casualty insurance. ...
  • Convexity
    Convexity is the rate of change in an asset’s price or value varies with the level of ...
  • M1
    ...