Economic performance in Malaysia rise of Islamic banking - Free Essay Example

Sample details Pages: 18 Words: 5529 Downloads: 2 Date added: 2017/06/26 Category Economics Essay Type Argumentative essay Did you like this example? Today in Malaysia, Islamic banking and finance has become a main flow in the financial and economic activities and has become accepted by the people. The increase participation from the conventional banks and creates a healthy competition among the Islamic banking and thus leads to the enhancement of the product and better services to the customer. In this paper we are discuss more about the history of Islamic banking in the past and present, the objectives, philosophy and principles and of Islamic banking, modern banking operations according to Shariah principles. The word bank is derived from the Italian word banco, the origin meaning is shelf or bench. (Mohammad Muslehuddin) Islamic banking is banking based on Islamic law (Shariah). It follows the Shariah, called  ¬Ãƒâ€šÃ‚ qh muamalat (Islamic rules on transactions).The rules and practices of  ¬Ãƒâ€šÃ‚ qh muamalat came from the Quran and the Sunnah, and other secondary sources of Islamic law such as opinions collectively agreed among Shariah scholars (ijma), analogy (qiyas) and personal reasoning (ijtihad). Don’t waste time! Our writers will create an original "Economic performance in Malaysia rise of Islamic banking" essay for you Create order Its also known as participant banking,  Islamic banking  refers to a system of banking  or banking activity that is follow with the principles of Islamic law  (Sharia) and its practical application through the development of Islamic economics. Sharia prohibits the payment or acceptance of interest fees for loans of money (riba), for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles (Haram, forbidden). While these principles  were used as the basis for an economy in earlier times, it is only in the late 20th century that a number of Islamic banks were formed to apply these principles to  private  or semi-private  commercial  institutions within the Muslim community. (Wikipedia) Islamic banking system in Malaysia comprises of the Islamic banking industry, the takaful industry, the Islamic money market, and the Islamic capital market. Firstly is Islamic banking industry. Islamic banking in Malaysia  began in September 1963 when Perbadanan Wang Simpanan Bakal-Bakal Haji (PWSBH) was established. PWSBH was set up as an institution for  muslims  to save for their  Hajj  expenses. In 1969, PWSBH merged with Pejabat Urusan Haji to form Lembaga Urusan dan Tabung Haji (now known as Lembaga Tabung Haji). In Malaysia, separate Islamic legislation and banking regulations exist side-by-side with those for the conventional banking system. The legal basis for the establishment of Islamic banks was the Islamic Banking Act (IBA) which came into effect on 7 April 1983. The IBA provides BNM with powers to supervise and regulate Islamic banks, similar to the case of other licensed banks. The Government Investment Act 1983 was also enacted at the same time to empower the Government of Malaysia to issue Government Investment Issue (GII), which are government securities issued based on Syariah principles. The long-term objective of BNM is to create an Islamic Banking system operating on a parallel basis with the conventional banking system. However, similar to any banking system, an Islamic banking system requires three vital elements to qualify as a viable system, for example number of players, a broad variety of instruments, and an Islamic money market. In addition, an Islamic banking system must also reflect the sosio-economic values in Islam and must be Islamic in both substance and form. BNM adopted step-by-step approach to achieve the objectives. The first step is to spread the good of Islamic Banking was to disseminate Islamic banking on a nation-wide basis. BNM decided to allow the existing banking institution to offer Islamic banking services using their existing infrastructure and branches. The option was seen as the most effective and efficient mode of increasing the number of institutions offering Islamic banking services at the lowest cost. On March 1993 BNM introduced a scheme known as Skim Pembankan Tanpa Faedah. The first Islamic bank established in the country was Bank Islam Malaysia Berhad (BIMB) which commenced operations on 1 July 1983. Same with its objectives, the banking activities of the bank are based on Syariah principles. BIMB has proved to be a viable banking institution with its activity expanding rapidly throughout the country with a network of 80 branches and 1,200 employees. The bank was listed on the Main Board of the Kuala Lumpur Stock Exchange on 17 January 1992. (Pledgeco.com) On 1 October 1999, a second Islamic bank namely Bank Muamalat Malaysia Berhad (BMMB) start its operations. The establishment BMMB was effect of the merger between Bank Bumiputra Malaysia Berhad (BBMB) and Bank of Commerce (Malaysia) Berhad (BOCB). In addition, BMMB was given 40 branches of BBMB and BBMBK in various locations throughout Malaysia and a staffs of 1,000 moves from BBMB, BOCB and BBMBK. In terms of products and services, there are more than 40 Islamic financial products and services that maybe offered by the banks using various Islamic concepts such as Qardhul Hassan, Mudharabah, Musyarakah, Murabahah,BaiBithaman Ajil, Ijarah, istisna, and Ijarah Thumma Al-Bai. Secondly is the takaful industry. Takaful  is an Islamic  insurance  concept which is in Islamic  muamalat  (Islamic banking), observing the rules and regulations of  Islamic law. This concept has been practised in various forms for over 1400 years.  Muslim jurists acknowledge that the basis of shared responsibility in the system of  aquila  as practised between Muslims of Mecca and Medina laid the foundation of mutual insurance. (Wikipedia) Takaful as a system of Islamic insurance is based on co-operation and mutual help for the good of the society. Furthermore, is the Islamic money market. The Islamic Interbank Money Market (IIMM) was introduced on 3 January 1194 by BNM. The activities of the IIMM included the purchase and sale of Islamic financial instruments among market participants (including the Bank), interbank investment activities through the Mudaraba Interbank Investment (MII) Scheme and a cheque clearing and settlement system through an Islamic Interbank Cheque Clearing System (IICCS).(Islamic world.net) Last but not least is the Islamic capital market. The Islamic Capital Market (ICM) refers to market transaction that carried out in ways that do not conflict with the conscience of Muslims and the religion of Islam. In other words, the ICM represents an assertion of religious law in the capital market transaction where the market should be free from the involvement of prohibited activities by Islam, as well as free from the elements such as usury (riba), gambling (maisir) and ambiguity (gharar). (Islamic world.net) Bank Practice: Past and Present The banking practice has already existed before the emergence of modern bank. This is because modern bank practice is based on ancient time that who first developed banking system which confines money exchange, interest, loans, depositing operations, credit transfer and etcetera. The ancient that are practice banking such as Babylon, Greece, Roman and the era of Prophet S.A.W. 2.1 Babylonian Civilization Babylon was ancient empire situated on the Euphrates River about 50 miles of modern Baghdad in southern Mesopotamia. Hammurabi was emerging as a ruler of Babylon then he expanded the empire and organized its own laws that called Code of Hammurabi around 2000 BC. The development economy of Babylon started at the end of 6000 BC by private banking system. This private banking business have owned by the families of Egibi. They were lending the loan to people by charging interest from 20% to 30 %. At the Babylon ancient, they are using silver coins as a medium exchange in any transaction for paying purpose. For the measuring, the silver will be arbitrated equal to value of the things. They were using silver coins because silver coins easy to keep and to be used. Besides using silver coins as the changes, they also used gold. The gold has been valued fifteen times more than silver coins valued. Upon the financing that increasingly exist, the power had legislated under Law of Hammurabi. It contained the rule of banking operation, interest loan and deposits. Babylon considered temple as the safe place to deposits their money. 2.2 Greek Civilization The banking practice in the ancient Greek is not differing much with ancient Babylonian. The ancient using temple as the safe place in deposited their money. The people in the ancient Greek, doing activities such as accepting deposits, exchanging money and making transfer between the difference cities and giving that is not differ than ancient Babylonian. However, during this ancient, the interest has been imposed on the lending of money within 6% to 12%. According to Henri Pirenne, an important transaction the interest rate was charged to 10% but at that time the interest arose to 50% or 100% or higher. 2.3 Roman Civilization Ancient Rome located along the Mediterranean Sea and centered on the city of Rome and become the largest empire in the ancient world as early 10th BC. As a vast area of land, the main economy for ancient Rome focused on farming and trade. At the time, the empire imposed for tax collection. Usually the empire collected production tax from conquered territory. The tax was imposed on grain-producing lands. For that, the empire had developed coinage system with using bronze, brass and precious metal coins. But the end of 3rd century, major problems of debasements of the imperial currency had undermined in the coinage and the empire demand for irregular tax payments. 2.4 Banking Practice in the time of Prophet Muhammad S.A.W. Prophet Muhammad S.A.W. was born on 12 Rabiul Awal AD 570 in Mecca is now Saudi Arabia. His father was died before he born following with his mother when he at six years old. The Prophet S.A.W. was brought up by his grandfather, Abd al-Muttalib and after that by his uncle Abu Talib. When the Prophet S.A.W. was young, his known as Al-Amin (the trustworthy) because his attitude that very nice and honest in every work and his life live. The Prophet S.A.W. then married to the wealthy widow Khadijah, a trader. At the age of 40, the Prophet S.A.W. received first revelations at Mount Hira. The Prophet S.A.W. has been appointed by Allah S.W.T. to spread Islam to all man to worship only one God and leave the futile things. However, the Prophet S.A.W. got against by the Quraisy and only several followers that believe on him. This situation makes the Prophet and his followers left Mecca and went to Yathrib (Medina) to spread Islam. The year the Prophet S.A.W. migrated to Yathrib, started the Islamic years which represented AH (after hijrah). Banking practice has already existed during the Prophet S.A.W. even bank institution does not exist yet. This was reported by Anas r.a the Prophet S.A.W selling a carpet and water vessel and was calling out for customers. A customers bid for one dirham, another customer bid for two dirham then the Prophet sold to him. During the Prophet S.A.W., he prohibits riba in any business transaction and followed the sharia compliants. There also developed a profit sharing in lending money. All the activities business based of partnership. There have different between before and after the coming of Islam. That time also, all Muslim have to pay the zakat in order to help the development of Muslim society. Finance system become more clearly and systematic when era Sayyidina Umar al-Khattab r.a. this is because in era Sayyidina Umar al-Khattab exist Bait al-Mal which is collected all property country from zakat, jizyah, kharaj and ghanimah. 3.0 Historical Development of Islamic Financial System in Malaysia Before the Islamic banking system had applied in Malaysia, Malaysia using conventional financial system to fulfill their financial needs. The roots of Islamic banking back to 1963 when the government established Pilgrims Management and Fund Board or Lembaga Urusan dan Tabung Haji (LUTH). This Tabung Haji established to invest the savings of local Muslim who intand to perform pilgrim (Hajj) with interest free. Tabung Haji applied Mudharabah a profit and loss sharing, Musyarakah, a joint venture and Ijrah, a leasing. These methods are under guidance of National Fatawah Committee of Malaysia. Establishment of Bank Islam Malaysia Berhad started operation on July 1st 1983. This bank is the first bank who applied Sharia Compliants which is free in interest rate, and using profit and loss sharing. The establishment of Bank Islam is to develop any transaction in loan of money, leasing, which are related to Islamic way. Another company that established applying Islamic principles is Takaful Malaysia. This company is insurance company that applying shariah concept. The major shareholder of Takaful Malaysia is BIMB Holdings Berhad with equity 65.5%. The company objective is to provide insurance services based Islamic way with efficiency and professionalism to all Muslims and non Muslims in Malaysia. Nowadays, almost conventional bank have develop Islamic banking practice in one of their services which is gaining more benefits to all people. Islamic banking, the world accept the concept. Even non Muslims more choose Islamic financial rather than conventional financial in term of guaranteed for a years. 4.0 Objectives of Islamic Banking The goal of Islamic financing institution should be in conformity with the objectives of the Shariah itself (maqasid al-shariah). Muslims jurists have unanimously agreed that the welfare of the people and relief of their hardships is the basic objectives of Shariah. According to Al-Ghazali (Muhammad al-Ghazali: 1937) and al-Shatibi (Abu Ishaq al-Shatibi:pp 46-47) the welfare of the people which become objective of Shariah consist in five aspect : The very objective of the Shariah is to promote the welfare of the people which lies in safeguarding their faith (din), their human self (nafs), their intellect (aql) their posterity (nasl) and their wealth (mal). Whatever ensures the safeguard of these five serves public interest and is desirable. The objective of the Islamic financial system is based on Islamic Law and Shariah. The first objectives are to be treated as an important vehicle to transfer funds from the surplus to the deficit units. This is done to ensure the equitable allocation of capital to sectors which would yield the best returns to the owners of capital, thereby contributing towards the overall growth and expansion of an economy. Second objective of the Islamic financial system is to ensure that the surplus fund be attracted for worthwhile investments in accordance with the owners preference in terms of the extent of risk involvement, rate of return, as well as the period of investment. Third objective of the Islamic financial system is to help the fund owners to find sufficient opportunities to invest for the short-term. Since it is contrary to Shariah principles to hoard wealth, it is necessary for the wealth owners to invest their funds in projects of either short-term or long-term nature. Fourth objective of the Islamic financial system is to promote, foster and develop the application of Islamic principles, law and tradition to the transaction of financial, banking and related business affairs and to promote investment companies, enterprise and concern which shall themselves be engaged in business activities as are acceptable and consistent with Islamic principle, law and traditions. (M.Fahim Khan:1983) A fifth objective of the Islamic financial is to provide Shariah compliant and prudent banking opportunities, hence providing an opportunity to Muslims to do their banking transactions in a halal way. In other words, this is just an effort to avoid Riba and other prohibited elements from commercial and banking transactions. 5.0 Philosophy of Islamic Banking The Islamic Banking and financial system is part and parcel of Islamic economics system. Therefore, Islamic banking and financial system is founded on the basis of Islamic economic philosophy. The foundations of the Islamic economy lie in the following basic principles derived from various injunctions of the Quran and the Sunnah. There are three philosophical foundation of Islamic Banking which is tauhid, khalifah and adalah. 5.1 Tauhid (Unity of God) Tauhid is the essence of Islamic teaching. It is about the recognition that there is no gods, except the God. The God is One. It implicates that human being only submits him/her self to the will of God that implicitly recognizing the Gods sovereignty. The Quran says: to Him belongs whatever is in the heavens and on earth, and all between them and beneath the soil Tauhid signifies mans commitment and total submission to Allah, in all aspects of his life. The other part of tauhid gives men the sense of being equals, free and independent of one another while they are equally dependent on Allah. It teaches men how to relate and deal with other fellowmen in the light of his relationship with Allah. Thus, it implies the principles of brotherhood, that each man is brother to other men and they are equal partner (Abdul-Hamid A. Abu Sulaiman: 1976). 5.2 Khalifah (vicegerency) Khalifah means obligation, obligation to Allah the Creator and The Owner of The universe. Man is the best of creations Human beings are the only species having been endowed with the qualities of conscience, intelligence, thinking and choice in order to fulfil his mission as Gods vicegerent. His main purpose of living in this world is to serve God and Him alone. On the individual level, it means that man has to worship the one God, behave in an ethical manner and realize his higher tendencies. The concept vicegerency of man implies and stresses that man is not sovereign; the only sovereign is Allah the exalted. Man is responsible for the implementation of Allahs sovereignty through the laws given by Him. 5.3 Adalah (ownership) Adalah is an ownership. This means the authority and power of possession. Based on this principle, man is neither the absolute owner nor the total possessor of the earth and its resources. Absolute power and complete possession belong only to Allah who has created man and all other creatures. Mans ownership then is limited to whatever Allah has wisely willed and to the capacity of his intellect, authority and freedom granted to him. Mans ownership in his analogy, is limited, borrowed, conditional and entrusted. (Seyyed Mahmood Taleqani:1983). 6.0 The Principles of Islamic Financial Institutions Islamic financial institutions have an important role to play in the light of Islamic teachings in order to please Allah (SWT). The fundamental principle of Islam states that the separation between temporal and religious matters is not permitted, which implies the compliance with Shariah as the basis for all aspects of life. This compliance covers not only religious worship but also business practices. Islamic financial institutions must operate within the framework of the religion, based on Quran and Sunnah. Hence their activity, transactions and behaviour must be in line with these principles. The basic principles that Islamic financial institutions must follow are: 6.1 Business Framework Islamic Banking System is based on Shariah Laws. Syariah laws ensure adherence to Islamic laws and provide guidance while the conventional financial systems is based only on man-made laws and no religious laws. 6.2 Interest (Riba) Interest (riba) in Islam is forbidden. Hence, all banking activities must avoid interest. Instead of interest, the bank earns profit (mark up) and fees on financing facilities it extends to customers. Also, depositors earn a share of the banks profit as opposed to interest. Within Islamic financial institutions, it is not allowed to charge for the mere use of money. Islamic financial institutions must trade in real assets or services whereas conventional financial institutions trade in money (buying money from depositors and selling money in the form of loans). Most the activities of the conventional financial institutions are interest based financing. 6.3 Prohibited activities Shariah prohibits using in certain activities. Islamic financial system must encourage and develop the applications of Islamic principles and law to transactions of finance, banking and business affairs. It controls the engagements of investment companies in activities that are tolerable and consistent with the Shariah law thus preventing the occurrence of activities forbidden by Islam. Only halal are allowed. Islamic financing will, therefore, be inappropriate in financing any enterprise involved in any type of activities that is unlawful in Islam or harmful mankind. For example, Islamic Bank does not finance liquor manufacturing, transportation, storage or distribution companies. 6.4 Contractual Relationship Contractual relationship in Islamic financial institution depends upon the nature of transaction. It could be a seller-buyer relationship (Murabahah), a lessor-lessee relationship (Ijara), a partnership (Musharakah) or a creditor-debtor relationship (Qard Hassan). In conventional financial institutions has only one relationship which is a creditor-debtor relationship (Qard Hassan) 6.5 Participation and risk sharing Another principle of Islamic finance is based on partnership and the sharing of risks. Islamic financial institutions offer investor/depositors participation in risk sharing type packages rather than fixed interest on deposit. Any risk-bearing instruments reflecting a real asset and earning a variable rate of return tied to the performance of the asset is considered to be consistent with Islamic law. In contrast to conventional banking principles what is condemned in Islamic banking is the notion of a risk free reward or return. The Islamic financial system employs the concept of participation in the enterprise, utilizing the funds at risk on a profit and loss sharing basis, thus encouraging better resource management. Management of the enterprise can be in one of several forms depending on whether the financing is through Mudarabah, Musharaka and so on. The relation of investors to the institution is that of partners whereas that of conventional banking is that of creditor investor. The Islamic financial system is based on equity whereas the conventional banking system is loan based. 7.0 Modern banking operations according to shariah principles. Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Shariah). The principles were used as the basis for a flourishing economy in earlier times, it is only in the late 20th century that a number of Islamic banks were formed to apply these principles to private or semi-private commercial institutions within the Muslim community. The first modern experiment with Islamic banking was undertaken in Egypt under cover without projecting an Islamic image. The first modern commercial Islamic bank, Dubai Islamic bank opened in 1975. In the early years, the products offered were basic and strongly founded on conventional banking products. However, in the last few years, the industry is starting to come up with strong development in new products and services. Islamic Banking is growing at a rate of 10-15% per year and with signs of consistent future growth. Islamic banks have more than 300 institutions spread over 51 countries, including the United States. It is estimated that over US$822 billion worldwide shariah-compliant assets are managed according to The Economist (Wikipedia) Islamic banking has the same purpose as conventional banking except its operates in accordance with the rules of Shariah, known as Fiqh al-Muamalat (Islamic rules on transactions). The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of riba (usury). Common terms used in Islamic banking include profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah), and leasing (Ijarah).(Wikipedia) Islamic banking is restricted to Islamic acceptable transactions, which exclude those involving alcohol, pork, gambling, etc. The aim of this is to engage in only ethical investing and moral purchasing. 7.1 Baial Inah (sale and buy-back agreement) Bai al inah is a financing facility with the underlying buy and sell transactions between the financier and the customer. The financier buys an asset from the customer on spot basis. The price paid by the financier constitutes the disbursement under the facility. Subsequently the asset is sold to the customer on a deferred-payment basis and the price is payable in installments. The second sale serves to create the obligation on the part of the customer under the facility. 7.2 BaiMuajjal (Credit Sale) Literally bai muajjal means a credit sale. Technically, it is a financing technique adopted by Islamic banks that takes the form of murabahah muajjal. It is a contract in which the bank earns a profit margin on the purchase price and allows the buyer to pay the price of the commodity at a future date in a lump sum or in installments. It has to expressly mention cost of the commodity and the margin of profit is mutually agreed. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. Bai muajjal is also called a deferred-payment sale. However, one of the essential descriptions of riba is an unjustified delay in payment or either increasing or decreasing the price if the payment is immediate or delayed. 7.3 Musharakah (joint venture) Musharakah is an agreement between two or more partners, whereby each partner provides funds to be used in a venture. Under Islamic jurisprudence, Musharakah means a join enterprise formed for conducting some business in which all partners share the profit according to a specific ratio while the is shared according to the ratio of the contribution. Profits made are shared between the partners according to the invested capital. In case of loss, each partner loses capital in the same ratio. If the Bank provides capital, the same conditions apply. It is this financial risk, according to the Shariah, that justifies the banks claim to part of the profit. A working partner gets a greater profit share compared to a sleeping (non-working) partner.(Muhammad Imran Ashraf Usmani,2002) 7.4 Mudarabah A special kind of partnership where one partner gives money to another for investing it in a commercial enterprise. The investment comes from the first partner who is called rabb-ul-mal, while the management and work is an exclusive responsibility of the other, who is called mudarib and the profits generated are shared in a predetermined ratio. The Mudarabah (Profit Sharing) is a contract, with one party providing the capital and the other party providing its specialist knowledge to invest the capital and manage the investment project. Profits generated are shared between the parties according to a pre-agreed ratio. 7.5 Murabahah This concept refers to the sale of goods at a price, which includes a profit margin agreed to by both parties. The purchase and selling price, other costs, and the profit margin must be clearly stated at the time of the sale agreement. The bank is compensated for the time value of its money in the form of the profit margin. This is a fixed-income loan for the purchase of a real asset such as real estate or a vehicle, with a fixed rate of profit determined by the profit margin. The bank is not compensated for the time value of money outside of the contracted term, meaning the bank cannot charge additional profit on late payments, however, the asset remains as a mortgage with the bank until the default is settled. 7.6 Musawamah Negotiation of selling price between two parties without reference by the seller to the costs or asking price of the goods or item. While the seller may or may not have full knowledge of the cost of the item being negotiated, they are under no obligation to reveal these costs as part of the negotiation process. This difference in obligation by the seller is the key distinction between Murabahah and Musawamah with all other rules as described in Murabahah remaining the same. Musawamah is the most common type of trading negotiation seen in Islamic commerce. 7.7 Bai salam Means a contract which is made advance payment for goods that to be delivered later. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of contract. It is necessary that the quality of the commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute. The purpose of use Salam is to meet the need of small farmers who need money to grow their crops and to feed their family up to the time of harvest. Otherwise, it is important for import and export. Under Salam, it is allowed for them to sell the goods in advance. After receiving their cash price, they can easily undertake the aforesaid business. Salam is beneficial to the seller because he receive the price in advance and it was beneficial to the buyer because the price in Salam is lower than the price in spot sales. 7.8 Ijarah Means lease, rent or wage. Generally, Ijarah concept means selling the benefit of use or service for a fixed price or wage. Under this concept, the Bank makes available to the customer the use of service of assets / equipments such as plant, motor vehicle. 7.9 Ijarah wal iqtina A contract under Islamic bank provides equipment, building, or other assets to the client against an agreed rental together with a unilateral undertaking by the bank or the client. At the end of the lease period, the ownership in the asset would be transferred to the lessee. The undertaking or the promise does not become an integral part of the lease contract to make it conditional. The rentals as well as the purchase price are fixed in such manner that the bank gets back its principal sum along with profit over the period of lease. 7.10 Qard Hassan (good loan/benevolent loan) This is a loan extended on a goodwill basis, and the debtor is only required to repay the amount borrowed. However, the debtor may pay an extra amount beyond the principal amount of the loan without promising it, as a token of appreciation to the creditor. In the case that the debtor does not pay an extra amount to the creditor, this transaction is a true interest-free loan. Some Muslims consider this to be the only type of loan that does not violate the prohibition on riba, since it is the one type of loan that truly does not compensate the creditor for the time value of money. 7.11 Wadiah(safekeeping) In Wadiah, a bank is deemed as a keeper and trustee of funds. A person deposits funds in the bank and the bank guarantees refund of the entire amount of the deposit, or any part of the outstanding amount, when the depositor demands it. The depositor, at the banks discretion, may be rewarded with Hibah as a form of appreciation for the use of funds by the bank. Conclusion Today, Islamic banking practice had already worldwide. Almost all conventional bank in the world applied Islamic banking practice which is suitable to apply even the whole world having the economic crisis. Shaykh Yusuf DeLorenzo, a Virgina-based Islamic scholar says in the book of Islamic Banking-Finance in South-East Asia a financial system without interest is more interested. Islamic banking that is based on Shariah compliants prohibits an interest which is powerful tool of exploitation of one sector of society by another (Angelo M. Venardos). Shariah compliants have adopted principles of Islamic banking and finance to guide the people in any transaction that people do. The principles are such as Baial Inah (sale and buy-back agreement), Baial Inah (sale and buy-back agreement), Musharakah (joint venture), Mudarabah, Murabahah, Musawamah, Bai salam, Ijarah, Ijarah wal iqtina, Qard Hassan (good loan/benevolent loan), and Wadiah(safekeeping). But even Islamic banking practice now is worldwide and almost all people accept Islamic banking some issues have raised up example, why people non-Muslims more prefer choose Islamic banking rather than Muslims selves? Even though Islamic banking practice is the first built at Islamic countries with the populations are among Muslims example of Malaysia. This issue that related to Muslims people are such an embarrassed to Islam self cause the Muslims does not supported Islamic banking practice that now already spread to the world. The Muslims thought that Islamic banking charged highest interest rather than conventional system. This narrow thought must be cleared from their mind as not, Islam will down fall as before. Reference Basic story https://www.islamic-finance.com/item36_f.htm banking business past and present (function() { var scribd = document.createElement("script"); scribd.type = "text/javascript"; scribd.async = true; scribd.src = "https://www.scribd.com/javascripts/embed_code/inject.js"; var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(scribd, s); })() Mohd. Ali Muhamad Don:Mengembalikan Kegemilangan Baitul Mal seperti era Khalifah Umar https://www.utusan.com.my/utusan/info.asp?y=2010HYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmdt=1105HYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmpub=Utusan_MalaysiaHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmsec=RencanaHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Ut usan_Malaysiasec=Rencanapg=re_03.hhtmpg=re_03.hhtm Islamic Banking in Malaysia https://www.islamic-world.net/islamic-state/malay_islambank.htm History of Banking https://en.wikipedia.org/wiki/History_of_banking

Exploring Human Development Essay - 927 Words

Exploring Human Development Development begins with conception and ends in death. It pertains to the changes an individual faces both physically and mentally throughout their lifetime, and can be shaped through a number of reasons. Development: The changes one undergoes during their lifetime. Cross-Sectional Design: Observing the differences between individuals by taking age into account. Nature: Deals with an individual s genetic makeup. Nurture: Deals with an individual’s experience with life. Resilience: One’s ability to adapt or outperform a situation. Physical Development Throughout life, humans constantly undergo physical change. These changes will increase from birth: reflexes, motor skills, vision, etc. and decline as one ages.†¦show more content†¦Logical thinking is met with abstract thought to allow individuals to form hypotheses and make predictions. Wisdom: A cognitive factor that tends to increase with age. 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Booker Page (Workbook Terkel) Essay Example For Students

Booker Page (Workbook Terkel) Essay November 9, 2000During the conversation with Booker Page he exhibits different qualities. Some of the qualities that he exhibits are work oriented, caring, and goal management. Booker shows that he is work oriented because of his long dedication to working on a ship. This is also evident when he talks about how the ship has a calling and once you work on the ship it is hard to quit. Bookers dedication is also shown because of how many years he worked on the ship. He also talks about how life has changed on the ship during his thirty-year career. Page shows that he is a caring individual in the way that he talks about his wife. An illustration of this is when he would wait for five hours to call his wife. He also shows that he is a caring man because he ended up leaving the sea for his wife. Page also exhibits a great deal of love and affection for his wife. An example of this is when he saw his wife for one night while being docked in Sa vana. Booker shows that he is very good at the task of goal management. One of the ways that we can assess that he was very mindful of his future is the way that he saved his money. He kept on working on the ship for as long as his body could handle it. After he finally gave up working on the ship he became a taxi driver. His life long goal was to save up enough money to move to the Pacific and have his own schooner. With all of the steps that I have outlined above it is not hard to tell that Booker Page was a hard workingman. If he didnt think out his career plan he would not have had the success that he might have had. English Essays

Of Mice And Men By John Steinbeck (1902 - 1968) Essays -

Of Mice and Men by John Steinbeck (1902 - 1968) Of Mice and Men by John Steinbeck (1902 - 1968) Type of Work: Rustic, sentimental novel Setting Salinas Valley, California; 20th-century depression years Principal Characters Lennie Small, a clumsy, simple-minded giant of a man George Milton, Lennie's friend and protector Candy, a ranch swamper Slim, a farm hand Crooks, a Negro stable worker Curley, the ranch owner's virulent son Curley's wife Story Overveiw George and his ponderous friend Lennie followed a dusty path leading to the banks of the Salinas River, toting their only possessions - bedrolls and a few articles of clothing. Slow-minded Lennie had cost them their previous jobs; his innocent fascination with a young girl's red dress and his awkward attempt to touch it had frightened the girl, forcing them to flee a lynch mob. Now they were heading for a nearby ranch to sign on as barley bucks. George reminded Lennie once again to let him do all the talking when they met with the ranch owner. Lennie promised that he would, and then begged George to tell him again about the farm they hoped to own one day: "Come on, George. Tell me. Please, George. Like you done before, " "You get a kick outta that, don't you?" George replied. "Awright, I'll tell you, and then we'll eat our supper ..." The dream farm will include all sorts of animals - and Lennie will be assigned to take care of the rabbits. The two men neared the ranch. Using Lennie's love of animals as a means of control, George once more warned his friend that if he didn't keep quiet, or if he caused any trouble at the ranch, they wouldn't get the job they so badly needed; then they couldn't earn the money for their dream-farm. As hiring negotiations began, the ranch boss questioned George about Lennie's quiet and slow manner. But George was ready with an excuse: "He's my ... cousin. I told his old lady I'd take care of him. He got kicked in the head by a horse when he was a kid. He's alright. just ain't bright." Once they were hired, both George and Lennie went right to work. Later, as they waited for lunch to be served, in sauntered Curley, the ranch owner's son. He was there to look over the new men. After Curley had gone, Candy, the bunkhouse swamper, warned them about the young man. A former prizefighter, Curley took pleasure in boosting his ego by picking on others. He was also an insecure husband - he became insanely jealous of anyone who even got near his wife. Seeming to sense that Curley would bring them trouble, Lennie now became agitated and nervous about the job; but with no money to fall back on, the pair was forced to continue working at the ranch. Before nightfall, another ranch hand, a jerkline skinner named Slim, presented the childlike Lennie with a puppy from his dog's litter. Slim appeared to be a kind and sensitive man, so George confided in him about the troubles he and Lennie had had. As they finished their conversation, Lennie shuffled in, smiling, with his puppy hidden inside his coat. George told him to take it back to the barn to be with its mother. That evening, in the deserted bunkhouse, George, Candy and Lennie still cradling his puppy - quietly talked. Lennie prevailed on George to tell him still again about their future farm. When George had finished the story, Candy piped up: it seemed that he had three hundred and fifty dollars saved up and he would be retiring soon; could he join George and Lennie in their plan? George happily agreed to Candy's proposal. With the swamper's money added to their wages, the three of them would soon have enough to buy a decent farm. Excited by this new development, Lennie was grinning with delight when Curley entered the bunkhouse in search of his wife. For days the ranch hands had been needling Curley about his wife's most recent wanderings. Now when the ill-humored husband spied Lennie's wide smile, and supposing that Lennie was taunting him, his temper boiled over. Curley stepped over to Lennie like a terrier. "What the hell you laughin' at?" Lennie looked blankly at him "Huh?" Then Curley's rage exploded. "Come on ya big bastard. Get up on your feet. No big son-of-a-bitch is gonna laugh at me. I'l show ya who's yella.." The giant, confused over the violent mmeling, refused at first to defend himf; George had warned him against making trouble: Lennie covered his ' face with his huge paws, and bleated in terror. He cried, "Make 'um stop, George."