Marketing The Non-Interest Banking System Essay -- Finance

Marketing Non-Interest Banking (International Business Vitality) traditionalistic Western banking system, with its 5-9% APR on loans performs some benefits for borrowers, but non absolute, as the bankers desire to joke. Much more than favorable conditions for customers can Moslem banks. These financial institutions argon willing to lend specie without any(prenominal) interest at all. At first glance, this statement seems absurd afterwards all, why should the bank go bad money to borrowers in debt with no hold of attractting any benefit, if it is more successful to invest the same money in the deal and get a significant income? However, skepticism is but justified in this situation. The prescript of Islamic banking system is based on the fact that every Moslem, careless(predicate) of whether he uses - a loan or debt, cannot carry financial traffic under a steady outrank according to the religious canons. vigorish is forbidden by Quran. The income of the bank is tr ustworthy from the investment redistribution. A Muslim who brings the money to the bank has a plectrum to put them on the incumbent account or into the investment account. If he chooses the current account, he does not receive any money, except the lump rate, which is set by the state. If he chooses an investment account, the banker and the client agree on the clients income from the income of the bank in a given investment project . payable to the fact that Islamic banks contrive their own companies and production, which bring income from the sales of limited goods in the market, these programs bring net income to the investors as well. There different programs in which European banks (English and German) can be interested in. (Dalrymple, B)Accordingly, the same principle applies to borrowers. victorious the money in ... ...dely apply by the European countries in enunciate to prevent financial crisis and rail local businesses. (Brach, J., 2010).ReferencesAli A. Ibrahim , The rise of customary businesses in international financial markets An macrocosm to Islamic finance and the challenges of international integration. Georgetown University integrity Center. (n.d.). Accessed at http//works.bepress.com/ali_ibrahim/3Brach, J. (2010). The globose Financial Crisis and the Arab World Impact, Reactions and Consequences. Mediterranean Politics.Dalrymple, B. How sharia law is affecting world(prenominal) interest rate determination. Journal of finance and Accountancy .Jobst, A. A. (2007). The Economics of Islamic Finance and Securitization. IMF Working PapersRobbins, H. E. (2010). soul Searching and Profit quest Reconciling the Competing Goals of Islamic Finance. Texas Law go off Marketing The Non-Interest Banking System Essay -- FinanceMarketing Non-Interest Banking (International Business Vitality)Traditional Western banking system, with its 5-9% APR on loans performs some benefits for borrowers, but not absolute, as the bankers li ke to joke. Much more favorable conditions for customers offer Islamic banks. These financial institutions are willing to lend money without any interest at all. At first glance, this statement seems absurd after all, why should the bank give money to borrowers in debt with no hope of getting any benefit, if it is more successful to invest the same money in the deal and get a significant income? However, skepticism is hardly justified in this situation. The principle of Islamic banking system is based on the fact that every Muslim, regardless of whether he uses - a loan or debt, cannot carry financial transaction under a steady rate according to the religious canons. Usury is forbidden by Quran. The income of the bank is received from the investment redistribution. A Muslim who brings the money to the bank has a choice to put them on the current account or into the investment account. If he chooses the current account, he does not receive any money, except the inflation rate, which is set by the state. If he chooses an investment account, the banker and the client agree on the clients income from the income of the bank in a given investment project . Due to the fact that Islamic banks have their own companies and production, which bring income from the sales of specific goods in the market, these programs bring profits to the investors as well. There different programs in which European banks (English and German) can be interested in. (Dalrymple, B)Accordingly, the same principle applies to borrowers. Taking the money in ... ...dely implemented by the European countries in order to prevent financial crisis and develop local businesses. (Brach, J., 2010).ReferencesAli A. Ibrahim, The rise of customary businesses in international financial markets An introduction to Islamic finance and the challenges of international integration. Georgetown University Law Center. (n.d.). Accessed at http//works.bepress.com/ali_ibrahim/3Brach, J. (2010). The Global Financial Crisis and the Arab World Impact, Reactions and Consequences. Mediterranean Politics.Dalrymple, B. How Sharia law is affecting global interest rate determination. Journal of Finance and Accountancy .Jobst, A. A. (2007). The Economics of Islamic Finance and Securitization. IMF Working PapersRobbins, H. E. (2010). Soul Searching and Profit Seeking Reconciling the Competing Goals of Islamic Finance. Texas Law Review