Islamic banking product

Principles[ edit ] To be consistent with the principles of Islamic law Shariah and guided by Islamic economics, the contemporary movement of Islamic banking and finance prohibits a variety of activities: Paying or charging interest. Investing in businesses involved in activities that are forbidden haraam.

Reverse engineering, disassembly or de-compilation of the Programs, except to the extent required to obtain interoperability with other independently created software or as specified by law, is prohibited.

QIB sprearheads innovation in Islamic banking products | World Finance

The information contained in this document is subject to change without notice. If you find any problems in the documentation, please report them to us in writing. Temenos does not warrant that this document is error-free. Except as may be expressly permitted in your license agreement for these Programs, no part of these Programs may be reproduced or transmitted in any form or by any Islamic banking product, electronic or mechanical, for any purpose, without the express written permission of Temenos Holdings NV.

Other names may be trademarks of their respective owners. Assumptions It is assumed that the reader of this guide has knowledge of the following. Document Support Any queries in any part of this document can be addressed to gpack temenos. Scope of this guide User Reference information of this particular development is the only scope of this guide.

Islamic banking on the rise, according to the 2018 Islamic banking Index by Emirates Islamic

The purchase may involve commodities, real estate, vehicle etc The bank makes a profit on the transaction, which is the difference between the price, which it pays to the supplier of the goods, and the price at which it sells the commodity to the customer.

This mark-up will be agreed between the Bank and the customer in advance. The financed amount and profit are due and payable on terms agreed between the two parties. Document Purpose This document provides information to the user to understand the different parameter files and their setup.

Bank will approve the customer's request and give an acceptance to initiate the transactions to customer. Customer will sign the PTPS promise for purchase and sale.

At this stage, bank may take a certain amount as Aarbun Down payment. Bank will purchase the asset from market. All necessary external costs incurred by the bank to bring the asset to its intended use will be added to the total cost of the asset or can be waived by the bank 5.

Once the asset as per agreed specifications is in possession of bank, the customer will sign the Murabaha agreement with the bank at an agreed fixed price including profit amount.

At this stage, Aarbun amount if taken earlier will be adjusted in the sale price. The repayment of the Murabaha Amount will be fixed for the asset and profit by a defined frequency and calculated automatically by system. Once the user gets the final results, they can print the final estimate and get it signed from the customer before proceeding to the murabaha sale contract Finance contract.

As soon the user enters the down payment, the same amount will get debited from the Total Purchase Cost Amount and the field will show the reduced amount. The frequency of the schedules. It can be in terms of number of days or months. Use the Asset Request from the menu. The options available in "Asset Request" are: The party to whom the goods are going to be leased under the Murabaha contract.

Enter the customer id in this field Supplier ID: The party from whom the goods are being purchased. The name of the Supplier.

Islamic Banking Products and Challenges in Nigeria | Sahara Reporters

We have the option to input either supplier id or supplier name Supplier's Acc: The account of the purchase counter party with the bank. If no account exists, an internal account can be input.

The price per unit of the goods being purchased Total Goods Cost: The currency in which the contract is undertaken. This will have to be the same as the currency to be used for purchase.

This is a no input field Note: A single customer can have more than one asset defined in ISB. Following screen will show the Asset details screen available under Vehicle Asset type.

Choose the option Asset Purchase from the menu. The actions carried out in Asset Purchase are: To do the pre-approval, click on the 'Murabaha Purchase Pre-Approval ' item on the menu.

The product that is being purchased for this particular Murabaha contract. This is a no-input field, which will be defaulted by the system and has to be a valid record in the IS.By Mohammed Waseem Musharakah is a partnership-based contract or an investment product with a partnership structure for sharing profits and losses, which is based on the Islamic Sharee’ah.

Islamic Banking Products and Challenges in Nigeria In January , the Central Bank of Nigeria granted Jaiz Bank an approval in principle to operate as a regional interest-free bank in northern. For Islamic banks this product is an ideal for Agriculture financing but can also be used to finance the working capital needs to the business customer.

It is one of the most popular Islamic Modes of finance used by banks in Islamic countries to promote riba . Islamic banking, also known as non-interest banking, is a banking system that is based on the principles of Islamic, or Shari'ah, law and guided by Islamic economics.

Islamic banking refers to a system of banking or banking activity that is consistent with the principles of the Shari'ah (Islamic rulings) and its practical application through the development of Islamic economics. Islamic finance products, services and contracts. Jump to navigation Jump to search Islamic banking and finance has been described as having the "same purpose" Ijarah, (literally "to give something on rent") is a term of Islamic jurisprudence, and a product in .