INTRODUCTION
This report identifies the roles of three types of banking found in the financial sector. These are: Islamic banking, Conventional banking and Investment banking.
1.1 Objectives
1) Demonstrate an understanding of the role(s) played by different organisations within the Financial Services Sector
2) Demonstrate, in report format, an understanding of the ethical conflicts which face firms in the Financial Services Sector
3) Demonstrate and evaluate problems caused by differing objectives which face both the customer and the Financial Services provider
ISLAMIC BANKING
2.1 What is Islamic Banking
Muslims follow a “set of duties and practices including worship, prayer, manners and morals, marriage, inheritance, crime and commercial …show more content…
Muslims use this form of banking making it easier to follow their religious beliefs. The Shari’ah is the Islamic law which operates on Islamic Principles, derived from the Qu’ran and Sunnah, practiced mainly by Muslims. The Sunnah consists of the rituals of the Prophet Muhammad (pbuh).
2.2 How does it differ from conventional banking?
Islamic banking can be compared to conventional banking, which is prohibited by Islam. These two types of banks, but are both known worldwide and are extremely different in many ways. This is in respect of:
• …show more content…
This means there is a difference in relationship between the bank and the customer. In conventional banking the relationship between the two is simply the debitor and the creditor. Having this relationship means that the banks can concentrate more on maximizing profits over social responsibility. On the other hand Islami Banks have a relationship of “trust, openness and respect” with their customers. These customers know that the Islamic Bank will run on the provisions of the shari 'ah and the four main principles:
• Prohibiting
This report identifies the roles of three types of banking found in the financial sector. These are: Islamic banking, Conventional banking and Investment banking.
1.1 Objectives
1) Demonstrate an understanding of the role(s) played by different organisations within the Financial Services Sector
2) Demonstrate, in report format, an understanding of the ethical conflicts which face firms in the Financial Services Sector
3) Demonstrate and evaluate problems caused by differing objectives which face both the customer and the Financial Services provider
ISLAMIC BANKING
2.1 What is Islamic Banking
Muslims follow a “set of duties and practices including worship, prayer, manners and morals, marriage, inheritance, crime and commercial …show more content…
Muslims use this form of banking making it easier to follow their religious beliefs. The Shari’ah is the Islamic law which operates on Islamic Principles, derived from the Qu’ran and Sunnah, practiced mainly by Muslims. The Sunnah consists of the rituals of the Prophet Muhammad (pbuh).
2.2 How does it differ from conventional banking?
Islamic banking can be compared to conventional banking, which is prohibited by Islam. These two types of banks, but are both known worldwide and are extremely different in many ways. This is in respect of:
• …show more content…
This means there is a difference in relationship between the bank and the customer. In conventional banking the relationship between the two is simply the debitor and the creditor. Having this relationship means that the banks can concentrate more on maximizing profits over social responsibility. On the other hand Islami Banks have a relationship of “trust, openness and respect” with their customers. These customers know that the Islamic Bank will run on the provisions of the shari 'ah and the four main principles:
• Prohibiting