Principles of Islamic finance

Prof. M. Muzahidul Islam

University of Dhaka
Dept of Banking

Principles of Islamic Money

Money is considered as servant Money is considered as only the medium of exchange Money should not be stored or used for speculative purpose Money is not considered as commodity and hence can not be traded Value of money should be kept stable at any cost Money is considered as blessing as it help avoiding Riba AL Fadl

Principles of Islamic Money

Supply of money is controlled and conditional Credit Money is discouraged It is the duty of the Islamic Govt. to do everything possible to keep the value of money intact, Islamic Govt. should not take any policy that may cause the value of money eroded. Hoarding of money is prohibited

Principles of Islamic Banking

Principle of not transacting on credit. Principle of Establishing a banker customer relationship on the basis participation in profit and loss. Principle of segregating capital funds from deposits firm. Principle of mobilizing resources to use for development not only for profit Principle of acting as a multipurpose bank.

Principles of Islamic Banking

Principle of Earning reasonable profit through Halal transaction. Principle of Investmenting on profit sharing or Profit and loss sharing Principle of Prohibition of Interest Principle of not creating credit. principle of establishing Baiya Principle of establishing good and eliminating evils. Principle of upholding socio-economic requirement of the country

Principles of Islamic Banking

Principle of establish good and eliminate evils. Principle of creating more employment opportunities by increasing economic activities. Principle of ensuring equitable distribution of resources Principle of not creating credit. principle of establishing Baiya (Trade, Com. & Industry) Principle of establish good and eliminate evils.

Principles of Islamic Insurance

Principle Principle Principle Principle Principle Principle Principle Principle Principle

of of of of of of of of of

observing Islamic Shariah making insurance Riba free making insurance Maisr free making insurance Gharar free selecting shariah permitted Nominee Mudharaba contract Tabarru Principle of Halaal Investment Transparancy Cooperation and brotherhood

Principles of Islamic Microfinance

>Target Group is marginal farmer, trader and self employed persons >Investment provided against profit sharing, P&loss >sharing or service charge >Sometimes Trading mode could be followed >Generally collateral free >Repayment at the convenient of the investment taker >Supervised in nature