Islamic banking in kenya

InIran's President Mahmoud Ahmadinejad ordered the replacement of the US dollar by the euro in the country's foreign exchange accounts because "it would help decouple Iran from the US banking system. Consequently, the value of the national reserves has risen by a few billion dollars" he said.

Islamic banking in kenya

A Fatwa is issued by a qualified person or body with authoritative knowledge. What is Riba or Interest? Riba literally means increase, addition, expansion or growth. It is however, not every increase or growth which has been prohibited by Islam.

Islamic banking in kenya

Is interest only prohibited in Islam only? Prohibition of interest is not limited to Islam. It is also prohibited in Judaism and Christianity - for reference see Exodus Secondly to give a brief answer to what this is, we would like to quote what one of the well-known Islamic scholars, Imam Al-Ghazali pointed out in the following words: This is because when a person having money is allowed to earn more money on the basis of interest, either in spot or in deferred transactions, it becomes easy for him to earn without bothering himself to take pains in real economic activities.

This leads to hampering the real interests of the humanity, because the interests of the humanity cannot be safeguarded without real trade skills, industry and construction.

Islamic finance is an interest free finance system. It is asset based as opposed to currency based. A deal is structured on exchange or ownership of assets and money is simply the payment mechanism to effect the transaction. The major difference between Islamic finance and conventional banking is that Islam teaches us that money itself has no intrinsic value and forbids people from profiting by lending the money without accepting any level of risk.

Interest cannot be charged. Wealth can only be generated through legitimate trade and investment. Any gain relating to this trading must be shared between the parties concerned.

Is there a difference between interest and usury?

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The Holy Quran has used the word Riba to explain any excess taken on any type of loan. Through several Hadith, it is also proved that any amount taken, over and above the principal in a loan, is Riba whether it is for commercial or productive purpose or for consumption purpose.

This is the conventional banking system that has classified two different terms as commercial interest for businesses and usury for consumption loan.

For example, if Mr. On the other hand, if he takes a loan to purchase a computer for his personal use then the amount paid over and above the principal would be usury. But according to Islamic principles, both types are Riba and are not permissible.

What is Islamic Banking? It is not banking which is based on pricing money and earning interest as conventional interest-based banks do but it is a system of trade where goods and services are sold and capital is invested by taking risk to earn halal profits.

Interest free banking is a subset of Islamic banking concept.

Other IFN Titles

What are the main principles of Islamic Finance? The Prohibition of Riba which is the taking or receiving of interest.National Amanah; National Amanah. National Amanah, the Islamic banking window of National Bank, offers shariah compliant banking to its customers.

The bank first introduced Al-mumin, in which was rebranded in April to National Amanah to offer a wider range of banking products and services that are Shariah compliant. There has been a steady growth in the Islamic finance industry in Kenya. The country currently has two fully fledged Islamic banks and several other conventional banks with Islamic windows offering Islamic banking products and services.

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The Central Bank Iran (CBI), also known as Bank Markazi, officially the Central Bank of the Islamic Republic of Iran (Persian: بانک مرکزی جمهوری اسلامی ايران ‎, translit.

Bank Markazi-ye Jomhuri-ye Eslāmi-ye Irān) is the central bank of regardbouddhiste.comished under the Iranian Banking and Monetary Act in , it serves as the banker to the Iranian government and has.

What you have always wanted and more. DIB Cards. Latest offers. Kenya, the IMF says, should seek to bring clarity to the grey areas in Islamic finance as it drafts amendments to the banking law as promised in the /18 budget.

List of Islamic Banks in Kenya