Islamic Banking in Bangladesh Essay Example | Topics and Well Written Essays - 3000 words

Islamic Banking in Bangladesh - Essay Example Islamic / Shariah based Banking System. Operation of Islamic Banking.. The main focus of the report is the Islamic Banking system; which is indicated a way to the light. Methodology: Research type: It is an exploratory research. Source of data: In this report all-necessary information to prepare are collected from secondary data. Secondary data: I need much information for the report, which we get from secondary data. These are: Annual Report of different banks. Different types of brochures of EXIM Bank Ltd. Books and Journals (Details are available at Bibliography). Research approach: As the research is based on secondary data Traditional Research approach has used as (Query from Internet, Journals, Books etc). Analysis & reporting: I have used different types of statistical tools and computer software for analyzing and reporting my gathered information, such as - Microsoft Excel, Microsoft Word, SPSS. Limitations of the Study: The study had to be completed under certain constraints, which barred it to be more effective. Some of these constraints are listed: Every organization has their own secrecy that is not revealed to others. Another limitation of this study is Banks policy of not disclosing come data and information for various reasons, which could be very much useful. No contacted method used because research conducted based on secondary data. Despite the limitations, I have tried my best to prepare the report. If you find any mistakes please consider it cordially. Islamic Banking: Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow...All the data for this analysis has collected from secondary sources. The primary objective of this report is to comply with the requirement of my course. But the objective behind this study is something broader. Objectives of the study are summarized in the following manner: Islamic Banking: Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. 5. The Islamic banks have no provision to charge any extra money from the defaulters. Only small amount of compensation and these proceeds is given to charity. Rebates are give for early settlement at the Bank's discretion. Islamic Shariah prohibits 'interest' but it does not prohibit all gains on capital. It is only the increase stipulated or sought over the principal of a loan or debt that is prohibited. Islamic principles simply require that performance of capital should also be considered while rewarding the capital. "The prohibition of a risk free return and permission of trading, as enshrined in the Verse 2:275 of the Holy Quran, makes the financial activities in an Islamic set-up real asset-backed with ability to cause value addition"4. Islamic banking system is based on risk sharing, owning and ha