The document discusses Islamic financing and banking. It begins with an overview of Islamic banking principles, which are based on prohibiting interest and promoting risk sharing. It then outlines the evolution of Islamic banking products in Malaysia from the 1980s to present day, including deposit accounts, financing for individuals and corporations. The document notes the average growth rate of Islamic financing in Malaysia is 12.3% annually. It also discusses factors that encourage non-Muslims to use Islamic financial services and the importance of ethical and welfare-oriented aspects of Islamic financing.
These slides aim to provide an overview on the Islamic Banking, with an extensive coverage on the products and services offered along with the profit computation method. We have tried to address the common questions are asked about Islamic Banking, What is Islamic Banking? How is it different from Conventional Banking? How Islamic Product works? Challenges Faced by Banks etc.
Rural Islamic Credit Card is conceptualized to extend financing to farmers in a convenient and cheap manner but in compliance with the Shariah. This is to help farmers in overcoming the financial difficulties to meet their working capital needs. The objective is to leverage on Islamic Banking Principles to provide financing in convenient and interest free manner to establish a just and balanced social order free from exploitation. A salient feature of this proposed product is to provide Shariah compliant financing to farmers to purchase high quality crop inputs with the amount being repaid through the sale of the crop on harvest. But it must be noted here that this proposed product has not obtained approval from the authorities. Readers are invited to give their views on this product.
Based on Islamic Finance principles, Conventional Credit Cards are considered as Unpermissible as it doesn’t comply with the Shariah requirement and Interest element is involved. Hence, Islamic Credit Cards were introduced and can be considered as one of the innovative financing products offered by Islamic Financial Institution to meet the demand for interest free credit cards. The slides will provide functions, features and contracts used in Islamic Credit Card.
These slides aim to provide an overview on the Islamic Banking, with an extensive coverage on the products and services offered along with the profit computation method. We have tried to address the common questions are asked about Islamic Banking, What is Islamic Banking? How is it different from Conventional Banking? How Islamic Product works? Challenges Faced by Banks etc.
Rural Islamic Credit Card is conceptualized to extend financing to farmers in a convenient and cheap manner but in compliance with the Shariah. This is to help farmers in overcoming the financial difficulties to meet their working capital needs. The objective is to leverage on Islamic Banking Principles to provide financing in convenient and interest free manner to establish a just and balanced social order free from exploitation. A salient feature of this proposed product is to provide Shariah compliant financing to farmers to purchase high quality crop inputs with the amount being repaid through the sale of the crop on harvest. But it must be noted here that this proposed product has not obtained approval from the authorities. Readers are invited to give their views on this product.
Based on Islamic Finance principles, Conventional Credit Cards are considered as Unpermissible as it doesn’t comply with the Shariah requirement and Interest element is involved. Hence, Islamic Credit Cards were introduced and can be considered as one of the innovative financing products offered by Islamic Financial Institution to meet the demand for interest free credit cards. The slides will provide functions, features and contracts used in Islamic Credit Card.
This project decribes about the islamic financing techniques that are used by Bank Islami Pakistan. general islamic financing techniques include morabaha, musharaka, ijara and various techniques provided by this bank. i hope you will like this presentation.
Loans and advances (with special reference to NPA)Rahul Prajapati
Loans and Advances- Meaning, utility , categories of loans, forms of advances, loan Vs advances, types of securities, procedures for granting loans and advances, Overview of NPAs, Classification of Assets, Causes of NPAs, Case Study of Vijaya Malya......
Regulating Islamic Banking : A Malaysian PerspectiveLokesh Gupta
This paper provides an insight of importance of regulations and supervisory structures for Islamic Banking System. This builds up public confidence and ensure well-being of the Economy. It also covers the various initiatives taken by the Central Bank of Malaysia for Islamic Banks to counter future risks and to maintain financial stability in the financial sector.
Credit card with Moral Consciousness whereby it
allows cardholders to redeem their rewards
points to donate to charity, thus making
it easier to turn unused points into cash
donation. The Card with Charity is based on simple modus operandi ‘Spending and Sharing’ will not only satisfy the payment needs but also the need of conscious customers to perform charity.
Online Retail Bank aims to be the one-stop shop for as various financial services as possible on behalf of retail customers. Online Retail Bank has extended a criteria-based marker system which is simple and effective in estimating a wide range of diverse financial industries on their financial impact. Only financially sensible/performing financial industries are evaluated, guarantee that its recommendations make both financial and retail sense.
This project decribes about the islamic financing techniques that are used by Bank Islami Pakistan. general islamic financing techniques include morabaha, musharaka, ijara and various techniques provided by this bank. i hope you will like this presentation.
Loans and advances (with special reference to NPA)Rahul Prajapati
Loans and Advances- Meaning, utility , categories of loans, forms of advances, loan Vs advances, types of securities, procedures for granting loans and advances, Overview of NPAs, Classification of Assets, Causes of NPAs, Case Study of Vijaya Malya......
Regulating Islamic Banking : A Malaysian PerspectiveLokesh Gupta
This paper provides an insight of importance of regulations and supervisory structures for Islamic Banking System. This builds up public confidence and ensure well-being of the Economy. It also covers the various initiatives taken by the Central Bank of Malaysia for Islamic Banks to counter future risks and to maintain financial stability in the financial sector.
Credit card with Moral Consciousness whereby it
allows cardholders to redeem their rewards
points to donate to charity, thus making
it easier to turn unused points into cash
donation. The Card with Charity is based on simple modus operandi ‘Spending and Sharing’ will not only satisfy the payment needs but also the need of conscious customers to perform charity.
Online Retail Bank aims to be the one-stop shop for as various financial services as possible on behalf of retail customers. Online Retail Bank has extended a criteria-based marker system which is simple and effective in estimating a wide range of diverse financial industries on their financial impact. Only financially sensible/performing financial industries are evaluated, guarantee that its recommendations make both financial and retail sense.
Presentation by Amirul HM & Penny Siew at the Asia-Europe Institute - University of Malaya for "Financial & Accounting Ratios for SMEs" subject, IMSME Programme. 2009.
Islamic Micro Finance is needed to empower Africans, There are different instruments for different level of poverty. There are four classes of the poor.
1. The active poor
2. The poor Destitute
3. The poor and
4. The poorest of the poor
Emergence of islamic Finance in Malaysia (2017) & Career in Islamic FinanceAmir Alfatakh
The Emergence of Islamic Finance, career opportunities in Islamic Finance, and what the industry is looking for (Career briefing to International Islamic University of Malaysia IIUM in April 2017)
Smart Contract is gaining popularity globally. The objective of this presentation is to provide an overview of smart contract, types, components, technologies and use cases.
OmniRemit (End to End Remittance & Currency Exchange Suite)Lokesh Gupta
OmniRemit® (Remittance Solution Suite) is flagship product of RM Applications Sdn.Bhd (RMA). It enables end to end automation of cross border Remittance and Payment Solution tailor made for Financial Institutions. The solution suite comprises of Online Remittance, Branch Remittance, Agent Remittance, Online Remittance, Mobile Remittance and Compliance Modules in compliance with Bank Negara Malaysia requirements and AMLA (Anti Money Laundering) guidelines. It is a comprehensive solution to meet the growing and dynamic need for digital remittance along with eKYC to facilitate Digital Onboarding.
Gharar Free ReBittance – Powered by BlockchainLokesh Gupta
ReBittance can be defined as remittance backed by Blockchain technology instead of a traditional model based on a centralized network. Blockchain technology facilitates the use of digital assets such as cryptocurrency to process payments using unique secured shared electronic ledger. This unique feature of blockchain technology eliminates gharar (uncertainty) and make transaction processing cost-effective (low fee - ujr) and facilitates financial inclusion for unbanked such as migrant worker remittance to their home country. Another advantage is impenetrability, making it difficult to compromise as everything is tracked on a ledger which stops people from spoofing it or creating fake data. Blockchain strengthens the payment ecosystem by providing limitless opportunities in the usage of digital assets, payments, remittance and implementation of smart contracts. Islamic Banks globally are embracing for digitizing the user experience for banking to achieve accuracy, security, speed in-process and cheaper processing cost for remittance i.e. P2P (Peer to Peer), B2B (Business to Business), B2I (Business to Individual) and eCommerce transactions. The objective is to achieve low-cost remittance and payment intermediation ecosystem using open and transparent blockchain technology.
There are ongoing debates on acceptance of cryptocurrency as a medium of exchange, however, Islamic Banks are getting themselves ready to embrace blockchain technology, which follows Shariah (Islamic law). There have been initiatives by Al Rajhi bank to adopt ‘Ripple’s ecosystem for remittance and payments. This shows the acceptance level is increasing amongst the Islamic Bank. Blockchain technology is reverberating across the entire global financial ecosystem and early adopters will have a better advantage. Islamic Banks must be prepared as disruption has already started by FinTech companies and the acceptance level at consumers is increasing. The need of the day is leverage on the open nature of rebittance to innovate the remittance models and provide a better user experience. There are limited first movers to use blockchain for remittance and payments especially in Islamic finance, hence it provides limitless opportunities for Islamic Bank to embrace it.
This presentation provides overview on the traditional remittance, rebittance platform, perform a comparison with traditional models and models practised for processing remittance transactions in compliance with Shariah (Islamic Law) principles. It also provides a viewpoint on available opportunities available for Islamic bank and Fintech companies to explore and embrace.
Collaboration SeGI University, MIMOS & RM Applications Sdn Bhd for Launch of ...Lokesh Gupta
SEGi University is now partnering with MIMOS and RM Applications Sdn Bhd to establish the Islamic Centre for Emerging Technologies (ICET). The ICET initiative is in line with PM Tun Dr Mahathir Mohamad’s drive for greater utilisation of Industrial Revolution 4.0 (IR 4.0). With Malaysia being a pioneer in the field of Islamic Finance and Halal transactions and the world’s third-largest holding of Islamic assets, it is in a prime position to lead the Islamic world into the age of IR4.0.
Keeping above in mind, SEGi University, MIMOS (the National Applied Research and Development body) and RM Applications Sdn Bhd are establishing ICET. RM Applications Sdn Bhd, a technology solutions provider to Islamic and Conventional Financial Institutions would also assist with content provision, implementation and commercialisation of ICET products.
ICET will be initiating research towards the development of the following products with modern technology:
• Chatbot in Islamic Finance
• Chatbot in Islamic Investment
• Artificial Shariah Intelligence for Product Screening
Lokesh Gupta is the Co-Founder of RM Applications Sdn. Bhd. (RMA), a MSC status boutique software company based in Kuala Lumpur, Malaysia. He is passionate about Remittance, Payments and Data Management. Being part of boutique software organization, Lokesh is honored to wear many hats based on the situation and his role, demands involvement in wide scale with greater responsibilities. He takes end to end ownership by getting involved in all aspects of the organization and sees the ideas transform from the conceptualization stage, to become a full-blown product and keep it evolving to match Industry needs and to be part of RMA’s expansion.
Lokesh Gupta is the Co-Founder of RM Applications Sdn. Bhd. (RMA), a MSC status boutique software company based in Kuala Lumpur, Malaysia. He is passionate about Remittance, Payments and Data Management. Being part of boutique software organization, Lokesh is honored to wear many hats based on the situation and his role, demands involvement in wide scale with greater responsibilities. He takes end to end ownership by getting involved in all aspects of the organization and sees the ideas transform from the conceptualization stage, to become a full-blown product and keep it evolving to match Industry needs and to be part of RMA’s expansion.
RM Applications: Simplifying Data ManagementLokesh Gupta
RM Applications has been Honoured again this year with Certificate of Honour by APAC CIOoutlook - Top 10 Business Intelligence Solution Providers (2018). We are thankful to our hardworking RMATEs (Our Team) and Continuous Support from our Clients and Partners.
Book Excerpt - Islamic Finance - A Practical PerspectiveLokesh Gupta
Islamic finance which is also recognized as ethical banking and responsible financing goes beyond Interest free banking and that is the drive behind authoring this book “Islamic Finance: A Practical Perspective”. Much has been said and published from the perspective of banking with foundation based on Islamic Principles and religion practices. However, Islamic Finance is not limited to serving Muslims and is meant for all irrespective of religion. Hence, the knowledge of Islamic Finance Product Structure and functions is important for both consumer and practitioners for Muslims and Non-Muslims is important to understand the benefits and comparison with the Conventional Banking Products, which most of us are most familiar with. This book tries to simplify the explanation from practitioner perspective with easy illustration for easy understanding.
RM Applications Sdn. Bhd. (RMA): A Premium Provider of Advanced Technology ba...Lokesh Gupta
RM Applications Sdn Bhd has been featured as Company of the Month by Insights Success Magazine. RMA provides bespoke technology solutions for conventional and Islamic financial institutions in the areas of Remittance & Payments, Asset Liability Management & Liquidity (Basel 3) Reporting Data
Mart, MFRS9, Vehicle Inspection Management System (VIMS), ETL Consulting, SSIS Consulting, Customized Data Mart, Localization and integration of Partners' Solutions.
Islamic Finance - A Practical PerspectiveLokesh Gupta
This is an important book not just for students of Islamic finance but also for banking practitioners and consumers of banking products as it sets out the fundamental differences between Islamic finance and conventional banking and its importance in promoting a conscionable financial practice and sustainable economic development.” This book is reader friendly and written from practitioner perspective for ease of understanding. and wide in its scope: It covers basic Islamic financial concepts (such as riba, or interest, and gharar, or speculative uncertainty), markets and institutions (banking, capital markets, insurance, and private wealth management), products (bank accounts, equity funds, and sukuk, or Islamic bonds), and current challenges to the industry, such as corporate governance and risk management.
The global Halal economy and the Islamic fi nance industry are natural economic partners as both contribute
toward the sound and prospering Halal ecosystem. The Halal industry is going global by virtue of its qualitative
strength, essential elements of religion, health and holistic wellness. Halal, which simply means permissible and
lawful, is associated with a religious and spiritual foundation under Islam. The scope of Halal is beyond religious
practices and is all about a sense of morality and guide to living a good and wholesome life.
Halal has turned into a brand and is
being accepted globally. The Halal
industry, which is valued at about
US$560 billion a year, serves to meet
the needs of Halal-conscious clients and
is growing at an estimated annual rate
of 20%. The global Halal products and
services sector is growing at 8% yearon-
year and currently valued at US$3.2
trillion (excluding Islamic fi nance)
which is expected to reach US$12.14
trillion by 2024, according to Hexa
Research.
Big is beautiful: The survival mantra for the Islamic banking industryLokesh Gupta
The mergers of Islamic banks in Malaysia and globally are much needed as the market is getting overcrowded where many small Islamic banks are fighting for their survival. Mergers among Islamic banks to create a mega Islamic bank will create synergy with an objective of achieving a more effective and competitive Islamic banking landscape. In this context, ‘Big is Better’ as size is important mainly because it will permit a mega Islamic bank to have greater access to funds as well as to expand its asset book and create value in the Islamic banking space where margins are restricted due to the tighter operational environment. This special report is to identify the potential benefits and challenges of merger amongst Islamic Banks in Malaysia.
A negative interest rate policy will influence the way lending
and borrowing rates are charged in conventional Financial markets. The objective behind such a policy is to deliberately
boost aggregate demand and output by encouraging business and trade activities, which is no different from principles of Islamic Finance. This article provide insight into how Islamic Finance can help in achieving the same objectives expect from negative interest rate.
Generating a custom Ruby SDK for your web service or Rails API using Smithyg2nightmarescribd
Have you ever wanted a Ruby client API to communicate with your web service? Smithy is a protocol-agnostic language for defining services and SDKs. Smithy Ruby is an implementation of Smithy that generates a Ruby SDK using a Smithy model. In this talk, we will explore Smithy and Smithy Ruby to learn how to generate custom feature-rich SDKs that can communicate with any web service, such as a Rails JSON API.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Ramesh Iyer
In today's fast-changing business world, Companies that adapt and embrace new ideas often need help to keep up with the competition. However, fostering a culture of innovation takes much work. It takes vision, leadership and willingness to take risks in the right proportion. Sachin Dev Duggal, co-founder of Builder.ai, has perfected the art of this balance, creating a company culture where creativity and growth are nurtured at each stage.
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 3. In this session, we will cover desktop automation along with UI automation.
Topics covered:
UI automation Introduction,
UI automation Sample
Desktop automation flow
Pradeep Chinnala, Senior Consultant Automation Developer @WonderBotz and UiPath MVP
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Connector Corner: Automate dynamic content and events by pushing a buttonDianaGray10
Here is something new! In our next Connector Corner webinar, we will demonstrate how you can use a single workflow to:
Create a campaign using Mailchimp with merge tags/fields
Send an interactive Slack channel message (using buttons)
Have the message received by managers and peers along with a test email for review
But there’s more:
In a second workflow supporting the same use case, you’ll see:
Your campaign sent to target colleagues for approval
If the “Approve” button is clicked, a Jira/Zendesk ticket is created for the marketing design team
But—if the “Reject” button is pushed, colleagues will be alerted via Slack message
Join us to learn more about this new, human-in-the-loop capability, brought to you by Integration Service connectors.
And...
Speakers:
Akshay Agnihotri, Product Manager
Charlie Greenberg, Host
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
Software Delivery At the Speed of AI: Inflectra Invests In AI-Powered QualityInflectra
In this insightful webinar, Inflectra explores how artificial intelligence (AI) is transforming software development and testing. Discover how AI-powered tools are revolutionizing every stage of the software development lifecycle (SDLC), from design and prototyping to testing, deployment, and monitoring.
Learn about:
• The Future of Testing: How AI is shifting testing towards verification, analysis, and higher-level skills, while reducing repetitive tasks.
• Test Automation: How AI-powered test case generation, optimization, and self-healing tests are making testing more efficient and effective.
• Visual Testing: Explore the emerging capabilities of AI in visual testing and how it's set to revolutionize UI verification.
• Inflectra's AI Solutions: See demonstrations of Inflectra's cutting-edge AI tools like the ChatGPT plugin and Azure Open AI platform, designed to streamline your testing process.
Whether you're a developer, tester, or QA professional, this webinar will give you valuable insights into how AI is shaping the future of software delivery.
State of ICS and IoT Cyber Threat Landscape Report 2024 previewPrayukth K V
The IoT and OT threat landscape report has been prepared by the Threat Research Team at Sectrio using data from Sectrio, cyber threat intelligence farming facilities spread across over 85 cities around the world. In addition, Sectrio also runs AI-based advanced threat and payload engagement facilities that serve as sinks to attract and engage sophisticated threat actors, and newer malware including new variants and latent threats that are at an earlier stage of development.
The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
Cyberattack types and targets
Vulnerability exploit attempts on CVEs
Attacks on counties – USA
Expansion of bot farms – how, where, and why
In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
Axis of attacks – Europe
Systemic attacks in the Middle East
Download the full report from here:
https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
Elevating Tactical DDD Patterns Through Object CalisthenicsDorra BARTAGUIZ
After immersing yourself in the blue book and its red counterpart, attending DDD-focused conferences, and applying tactical patterns, you're left with a crucial question: How do I ensure my design is effective? Tactical patterns within Domain-Driven Design (DDD) serve as guiding principles for creating clear and manageable domain models. However, achieving success with these patterns requires additional guidance. Interestingly, we've observed that a set of constraints initially designed for training purposes remarkably aligns with effective pattern implementation, offering a more ‘mechanical’ approach. Let's explore together how Object Calisthenics can elevate the design of your tactical DDD patterns, offering concrete help for those venturing into DDD for the first time!
When stars align: studies in data quality, knowledge graphs, and machine lear...
Tapping into islamic finance for non muslims
1. Tapping into Islamic Financing
Banking on Faith Based Products
By Lokesh Gupta
Head, Business & Technology Consulting
By
RM Applications Sdn. Bhd.
No.69-1 Medan Setia 1
Bukit Damansara
50490 Kuala Lumpur
Tel: +603-20932677
Fax: +603-20932607
Website : www.rma.com.my
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2. Points to Share
1-. Islamic Banking Overview
2-. Benefits & Advantages
3-. Islamic Banking Evolution
4-. Islamic Banking for Non Muslims
5-. Critical Factors for Islamic Banking Acceptance
6-. Islamic Financing & Welfare
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3. What is Islamic Banking ?
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4. What is Islamic Banking?
Isamic Banking is based on the principles of
‘Trade and Commerce’
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5. Islamic Banking Principles
Riba Free
Isamic
Banking
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6. Benefits & Advantages
Ethical and Equitable Based on Shariah Based Principles rather Manmade
Banking Principles
It promotes risk sharing between provider of capital
Risk Ownership
(investor) and the user of funds (entrepreneur).
In the modern Islamic banking system, it has become one
Zakat (Religious Tax) of the service-oriented functions of the Islamic banks to
be a Zakat Collection Centre
The Islamic banks can only charge 1% on the outstanding
Penalty
installment in the event of default
It gives due importance to the public interest. Its ultimate
Social Welfare
aim is to ensure growth with equity.
The Islamic banks give greater emphasis on the
Economic Development economic development project rather profitability as sole
evaluation criteria
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7. Benefits & Advantages
There is no room for compounding of profit in Islamic
Fixed Repayment
Banking
The contracts are structured in a manner that the liability
Transparency
is fixed and is known to customer
Islamic Banking is not limited to Muslims and it is for Non
Banking for All
Muslims as well
Each Islamic Bank has Shariah Supervisory Board to
Strict Governance ensure that all business activities are in line with Shariah
requirement and BNM Statutory Requirement
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8. Evolution of Islamic Banking
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9. Evolution of Islamic Finance in Malaysia
− Wadiah Saving − Mudharabah Investment
− Wadiah Current − BBA Financing
Phase I - 1983
− Islamic Interbank Money Mkt − Trade Financing
− Murabahah Working Capital − Asset Securitization
(Mudharabah)
Phase 2 - 1993
− Istisna Financing
− Ijarah / AITAB
− Bai Innah Financing
− Islamic Bonds / PDS
− Rahnu
Phase 3 - 1998 − Bai al Dayn
− Qardh Hassan
− Musharakah − Mudharabah Financing
− Diminishing Musharakah − Commodity Murabaha
Current Stage − Bai Salam − Istijrar
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10. Evolution of Islamic Deposit Products in Malaysia
Islamic Deposit Products – Retail & Corporate
Saving Account - i Current Account - i Investment Account -i
Wadiah Yad Dhamanah Wadiah Yad Dhamanah Mudharabah Mutlaqah
(Trustee With Guarantee) (Trustee With Guarantee) (Unrestricted Investment)
Mudharabah
Mudharabah (Profit Mudharabah (Profit
Muqayyadah (Restricted
Sharing) Sharing)
Investment)
Qardh (Benevolent Loan) Qardh (Benevolent Loan)
Source : www.bankislam.com.my / www.muamalat.com.my / www.kfh.com.my / www.ambg.com.my / www.rhbislamicbank.com.my / www.bnm.gov.my
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11. Evolution of Islamic Financing Products in Malaysia
Islamic Financing Products - Retail
House Auto Personal Islamic Pawn
Financing - i Financing - i Financing - i Card - i Broking-i
Bai Bithaman Bai Innah (Sale Bai Innah +
AITAB (Lease to
Ajil (Deferred with immediate Qardh Ar-Rahnu
Purchase )
Payment Sale) repurchase) Hassan
Diminishing Bai Bithaman Bai Bithaman
Musharakah + Ajil (Deferred Ajil (Deferred Qard
Ijarah Payment Sale) Payment Sale)
Istisna (Purchase Bai Bithaman
Order) Ajil (Deferred
Murabahah Payment Sale)
(Cost Plus Sale)
Source : www.bankislam.com.my / www.muamalat.com.my / www.kfh.com.my / www.ambg.com.my / www.rhbislamicbank.com.my / www.bnm.gov.my
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12. Evolution of Islamic Financing Products in Malaysia
Islamic Financing Products – Corporate
Project Working Capital Asset
Financing - i
Trade Finance - i
Financing - i Financing - i
Al Istisna
Musharakah Murabahah (Cost
(Purchase Ijarah (Leasing)
(Partnership) Plus Sale)
Order)
Diminishing Bai Bithaman
Mudharabah
Musharakah Ajil (Deferred Wakalah (Agency)
(Profit Sharing)
Payment Sale)
Mudharabah Murabahah
(Profit Sharing) AITAB (Lease to Bai Dayn (Debt
(Cost Plus Sale)
Purchase ) Trading)
Murabahah
(Cost Plus Sale) Al Istisna
Kafalah
(Purchase
(Guarantee)
Order)
Source : www.bankislam.com.my / www.muamalat.com.my / www.kfh.com.my / www.ambg.com.my / www.rhbislamicbank.com.my / www.bnm.gov.my
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13. Key Statistics
Average Growth Rate in Islamic
Financing is +12.3%,
Source : www.bnm.gov.my / BNM Annual Report 2006
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14. Interest of Non Muslims in Islamic Financing
Interest is not only prohibited in Islam but is also
Prohibition of Interest
mentioned in Jewish Torah and Christian Bible
Repayment price is fixed and there is no element of
Fixed Repayment
compounding profit is involved
In the event of default, Penalty is limited to 1% of the
Penalty outstanding installment NOT on the total outstanding
amount
Non Muslims equate Islamic Finance with Ethical Living
Ethical Living and doesn’t want to get involved in anything they
perceive as unethical
Islamic Banks product range is No less then their
Product & Service
conventional counterpart and it offers a choice to the
Portfolio
customers
Islam recognizes money as a mean of exchange and not
Transparency
as a commodity, where there should be a price for its use
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15. Interest of Non Muslims in Islamic Financing
Non-Muslims fed up with punitive interest payments are
Debt Burden
more attracted to a system that imposes ethical practices
For a Business / Individual loan, the bank is not just the
financier but a co-owner of the business and has an
Profit Sharing
interest in its success as if they have equity.
Bank also shares the Loss based on equity proportion
Certainty Islamic financing is a preferred hedging device due to its
certainty
“In Malaysia up to “London has “The Central Bank of
25% of Islamic become a major Malaysia sees non-Muslim
accounts are opened trading centre for investment as the key to
by non-Muslims” Islamic funds” further market growth”
Source : www.bnm.gov.my / www.ethicalcorp.com / http://news.bbc.co.uk
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16. Success Factor to Encourage Acceptance of Islamic
Financing
Stress on Ethical Marketing
Create Awareness via branding and promotion
Offer convenience and easy access to information and banking online via e-
channels for SME & Corporate via Cash Management, EIPP etc.
Introduce Sophisticated Islamic products & services such as Wealth
Management, Halal Supply Chain Financing etc
Returns from Islamic instruments vs. conventional products
Standardization of Terms / Contracts
Transformation of traditional client service model for Islamic banks
Key drivers will be Innovation NOT Migration, infrastructure and regulatory
improvement.
Islamic Financing product with stress on economic development e.g.
Microfinance
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17. Success Factor to Encourage Acceptance of Islamic
Financing
To Fuel the Growth Islamic Banks will have to offer:
Variety and diversified options to Customers
Quality services to match the desired expectation of the
investors/customers.
Professionalism in dealing with investors.
Investors with adequate, timely and accurate information to support in their
decision making.
Competitive structures, pricing and choice of funds.
Adequate distribution channels.
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18. Islamic Financing & Welfare
Interest Free Economy – Socio Economic Justice
Interest retards social and infrastructural development of a nation. The more
the debt is paid, the more it increases.
Interest is sure gain without any possibility of loss, a reward without work; it
contributes to inflation and unemployment.
Ethical & Moral Dimension
Strong ethical and moral dimensions of doing the business and selecting the
activities/commodities to be financed by Islamic Banks are playing an
important role in promoting socially desirable investment and better
individual/corporate behaviour
Justice & Fairness
Islamic model is that it is based on profit sharing principle, whereby the risk is
share by the bank and the customer. This just system of financial
intermediation will contribute to a more equitable distribution of income and
wealth.
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19. Islamic Financing & Welfare
Spirit of Cooperation & Brotherhood
Islam encourages that every man should give the needy a specified proportion
of his wealth. This contribution is called as Zakat, a levey on certain
categories if wealth.
The principle of zakat is to take from those who have wealth and give it away
to those who do not. This rotation of wealth is a way to balance social
inequality.
Islamic Financing is Banking for All !!!
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20. Thank You
lokesh@rma.com.my
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