What does the concept of “Islamic banking” (banking) include? This concept means a certain way of doing banking, consistent and not running counter to the Muslim principles of conducting monetary transactions. The main rule of Islam in matters of financial transactions is the complete rejection of futures transactions and the prohibition of levying interest on loans by a banking institution.
Islamic Bank does not participate in transactions in which the following conditions are present:
Production and sale of alcoholic, narcotic and tobacco products;
Raising and selling pigs, as well as the production of non- halal products;
Financing of entertainment and gambling.
For Islamic banking, the main principle is that the remuneration of a depositor or a bank is not initially guaranteed – this remuneration will be derived from the profit that will be obtained as a result of the business. Economic turnover is not based on interest on loans, as is the case in the mainstream banking system.
An Islamic bank builds its work on the basic principle, which assumes that money cannot grow when it is issued in the form of a loan, since it is not a commodity. Therefore, the lender will receive profit and can count on it only when he invests his money in the economy, that is, real added value is created.
In Islam, those deposits and loans that are applied in an ordinary bank are outlawed – that is, those on which interest is charged. Interest-bearing securities or bonds are also prohibited.
Master › Finance in the Islamic world
The Master in Islamic Finance is a course at Widad University based on the relevance of the Islamic finance industry practice. Many areas of specialization have taken advantage of all graduate students taking a course to further their research. The program use to be designed for equipping all students with class training and skills in Islamic finance. Students taking a Master in Islamic Finance have the opportunity to become familiar with a broad aspect of Islamic conventional financial management.
The Master in Islamic Finance is a graduate course for supervising students who want to understand the complexities of Islamic finance as well as the management of moral, legal, and regulatory systems. Students learn the best approaches to solving many problems in the sector. Various skills acquired through coursework are conceptually the best skills for those who pursues in advancing careers in the industry. The program equips students with the most pressing issues affecting the Islamic financial sector. The course recognizes the need to develop general and specific skills in the industry. This continues to influence future career choices for students.
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