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.
More from this Section
- Official reserve transactions balance
Official reserve transactions balance is the current account balance plus items in the capital account.
- Twenty-foot equivalent units(TEU)
Twenty-foot equivalent units(TEU). A means of measuring the carrying capacity of container ships. A 2000 TEU capable ship is capable of
- Add-on plan
Add-on plan mean pays benefits to an automobile accident victim without regard to fault, but the injured person still has the right to sue the negligent
- Probationary period
Probationary period refers waiting period of one to six months
- Derivative deposits
Deposits created from different underlying transaction of bank is called derivative deposits. The prime underlying transaction includes ..
- Family purpose doctrine
Family purpose doctrine is a concept that imputes negligence committed by immediate family members while operating a family car
- Free trade zone
Free trade zone refers to an area within a country into which foreign goods may be brought duty free, often for purposes of additional manufacture, inventory ...