Islamic Banking

[Rehmat]

Islamic banking concept promotes development, sustainable growth, and distributive wealth justice. It strives for removal of non-tariff barriers, removal of price distortions, flexible regulations and legislation of labor, healthy and sound financial sector and capital markets, investment in skill development and technological assimilation and macroeconomic stability.

Islamic Shri’ah promotes Zakat, prohibition of Riba and the Islamic law of inheritance for achieving the socio-economic objectives.

Zakat redistributes wealth among the existing generation every year.

Prohibition of Riba is the cornerstone of Islamic financial transactions; the basis of cooperation between capital and enterprise in Islam is sharing of the risks and gains between the two.

Holy Qur’an has specifically prescribed a long list of inheritance accordance with the degrees of relationship and, as a result, the inherited wealth gets widely distributed among the inheritors including female members of the family – in fact the female members become better beneficiaries than men in the long run under Islamic family structure.

For more information on Islamic banking and finance, read Al Huda website below:

:: Al Huda :: Center of Islamic Banking & Islamic Economics