What is Islamic Banking System? (Shariah Banking - Halal Banking) and How Does it Work? AIMS UK

Islamic banking is a system of banking that is based on the principles of Islamic law (sharia). Sharia prohibits the charging of interest, which is known as riba. Instead, Islamic banks offer products that comply with sharia and seek to promote economic justice. Some of the key features of Islamic banking include profit-sharing, risk-sharing, and asset-backed financing. In recent years, there has been a growing interest in Islamic banking around the world, with many conventional banks now offering Islamic products. However, some critics argue that Islamic banking does not actually follow Sharia principles and that it is simply a way to attract Muslim customers. Nonetheless, there is no doubt that Islamic banking is a rapidly growing industry with immense potential.

#WhatIsIslamicBanking #IslamicBankingSystem #AIMS #AIMSEducation #Education #elearning #Training #OnlineCourses #WhatIs #OnlineCourses #IslamicBanking #IslamicFinance #ShariahCompliant #IslamicFinancing #IslamicBankingandFinance #Banking #Finance #IslamicStudies #IslamicEducation

Institute of Islamic Banking and Finance
Certified Islamic Banker (CIB)
Certified Islamic Finance Expert (CIFE)
Master Diploma in Islamic Finance (MDIF)
MBA in Islamic Banking and Finance
PhD Islamic Finance

[QuantumJG]

I think most people would prefer Islamic Banking. It seems much fairer.

[MultiSciGeek]

I'm not Muslims and I don't know about finance, but I kinda like the idea behind this. Why more people don't adopt this, when there are literal banks offering this is beyond me.

[MyCssJourney]

Thank you for covering this.
May Allah send infinite peace and blessings upon Prophet Muhammad(Peace Be Upon Him) and His family and His friends. Ameen sum ameen

[travellingservant]

If only we have this system, fiscal crisis will never happen.

[shadi]

Islam is the fastest growing religion in the world . A true monotheistic religion that teaches peace and tolerance

[jamilanor]

Allah knows what's best for his creation❤

[gold_real_money]

Prophet Muhammad (PBUH) himself was a great trader and relatively rich entrepreneur. He understood every part of how the successful business should run, how to treat customer fairly and honest, how circulation of money is important for the economy and how the money supply (in this case is banking system) itself should be managed fairly, honest and win-win cooperation for both parties (lenders and borrowers)

His goal is not getting rich, but rather using his richness to build the great economic system for all people and distributing wealth by trade and value added business (not by compulsory taxes or something like that)

[SbXan-mdbp]

This system' wont bring big money, but it Will bring good money. It Will be good for economy macro, cause interest is one of the reason for inflation

[taibmohammad]

One more thing banks can only give loans to equal or less than what their savings deposit are or equity money they raise via shareholding. Amount of loans will not exceed more than that it is a strict rule in islamic banking because printing money out of nowhere leads to inflation which is making poor people more poor.

[callous]

So many videos on this topic have comments disabled, disappointed, sometimes I like the discussion more than the video

[sweetpadre]

I get it. No market based "variable interest", no predatory lending/shark loans (in theory at least). The bank only profits if the interested parties prosper and additional transparency and simplicity when transaction takes place.
Now, what happens to fractional Reserve banking? Does it disappear altogether? And what happens to repossessions obtained by default loans?

[rossiaekaterinburg]

Ассалому алейкум менин мусулман бир туугандарым, сиздерден рамазан айында суранарым кимдин мумкунчулугу болсо АЛЛАХ жолуна кайрымдуулук кылсаныздар

[bissiimk]

I am being forced to take a student loan out by a family member and I cant say no, i dont know what to do i even explained to them it is haram and they dont I dont know what to do its been stressing me out and I havent ate for 2 days. Ya allah help me

[stevesmith]

This is silly. Islamic banking just sounds like interest-based banking with extra steps.

[Zyad_Ouhti]

we're in the late stage of capitalism anyways

[mariec]

This could be more precise, like, what percentage of the benefits do the banks or redistribute to lenders.
This would be very important, because, if they keep even a little too much, this will deprive the rest of the economy that needs to continue to function, since no new money is created like in the other banking system. Not that the same thing wouldn't happen overtime there but in a different way..

[ISLAMICFINANCEINSIGHTS-ntbi]

Islamic Finance is highly depending on the production than lending or borrowing money and get intrest rate from the money which make the rich people more rich and the poor people more poor..
The rich people will stay lend money and making wealth, while the poor people borrow and refune the main amound with interest rate...

[hamdah]

The industry has more than doubled in size since 2006
Sharī‘ah-complaint assets rose by 8.85% from US$ 822 billion in 2009 to US$ 895 billion in 2010
By end of 2011, total estimate of Sharī'ah-compliant assets was US$ 1.3 trillion (Islamic Banks: US$ 1.75 trillion by 2018 (IFSB).
Rapid growth experienced in the Gulf Cooperation Council (GCC) countries over the last decade
Growth and expansion of Islamic finance industry continued at the time of global financial crisis

[jayyzee]

So u just rename the interest to something else and call it islamic?

[auntiesemite]

Can ANYONE please let us know here WHERE there is a TRUE Islamic bank?