Easy and understandable elements and principles of Islamic Banking presented in a conscious sequence.

1. Islamic Banking
By : Salman Khan

2. Introduction
• Sharia Banking !
• "invented tradition“ or “Islamic capitalism”
• Capitalist concepts

3. Prohibition of Intrest
o Accordance with the Islamic laws
o Prohibits Riba (“excess" or "addition”)
o Allah says
 “O you who believe! Do not devour Riba multiplying it
over and keep your duty to Allah that you may prosper”
(3:130).
In Pakistan ?

4. Bank Client
money
money + money (interest)
Conventional Banking System

5. 5
Bank ClientGoods &
Services
money
Islamic Banking System

6. Principles of Islamic Banking
• Sanctity of contracts.
• Risk sharing.
• No Riba / Interest.
• Fairness.
• Consideration

7. Principles of Islamic Banking
Islam
Aqidah
(Faith and Belief)
Shariah
(Practices and Activities)
Akhlaq
(Moralities and Ethics)

8. Islamic Mode of Financing

9. Role of Islamic banking in Economic
Development of the Country
• Reduce Disparity
• Ensure Fairness
• Stable Economy
• Avoid Inflation

10. Is Islamic Banking Viable
• Does provide Halal means of finance
• In evolutionary process
• Continuous refining