The Rise and Development of Interest - Free Banking

The Rise and Development of Interest - Free Banking

Product ID: 25709

Regular price
Sale price
Regular price
Sold out
Unit price
Shipping calculated at checkout.

Shipping Note: This item usually arrives at your doorstep in 10-15 days

Author: Khiyar Abdalla Khiyar
Publisher: Institute of Objective Studies
Year: 2005
Language: English
Pages: 502
ISBN/UPC (if available): 818536205X


One of the most significant developments in the Muslim world during the second half of the 20th century was he emergence of Islamic banking, which has grown into an important movement in the world of financial arena. Although some attempts to reorganize banking activities along Islamic lines go back to the early sixties, the concept of Islamic banking is even older deeply entrenched in the 100 years old Islamic mode of financing and business ethics.

According to Standard & Poor's, the growth rate of Islamic banking services outpaced that of conventional banking during the past decade, making it one of the most dynamic areas in international finance generating job opportunities for more than 300,000 people around the world. Today, this industry enjoys different research centers, training institutions, magazines and periodicals in addition to the support extended to it by different western financial and academic institutions.

Actually, Islamic banking is a paradigm shift in mainstream banking and finance as it is a mixture of Islamic values and ethics with mainstream finance. Today, Islamic banks would not only offer savers a variable pecuniary yield on investment deposits but also a non-pecuniary return in the form of religious satisfaction. As a result, Islamic banking could make a strong case for itself on religious and economic grounds by arguing that an Islamic banking system can attract resources from devout savers which can be used to finance development projects, and can make profits without violating the teachings of Islam.

The author of this book has concentrated on the Malaysian experience of Islamic banking for two reasons: Firstly Malaysia is one of the few countries which have shown tremendous success in Islamic banking and successful co-existence of both banking systems. Secondly, Malaysia is a multi-religious and multi-ethnic country like most of the COMESA member countries.

This book is based upon the thesis submitted to the Department of Management Science at the Dr. B.S. Ambedkar Marathwada University, Aurangabad for the award of PhD in Management Science. This thesis was considered for publication by the Islamic Research and Training Institute of Islamic Development Bank.

The work introduces its readers to what has been going on and why in the field of banking in Islamic framework. It pays special attention to the Malaysian experiment in Islamic banking.



Chapter – I

Purpose of the Study
Scope and Significance of the Study
Period of the Study
Research Methodology
Chapter Scheme

Chapter – II

Ancient Banking
Banking in Early Islam
What is Interest/Usury?
A Brief History of Interest/ Usury in Europe
Usury/ Interest in Islam
Interest from Loan Vs Profit from Trade
The Impact of Western Colonization
Emergence of Islamic Banking
Islamic Banking and Petro-dollar
Mit-Ghamr: The Pioneering Experiment
The Unique Financial Institution: Tabung Haji
The Rise of Islamic Banks
Islamic Banking in Malaysia

Chapter – III

What is Islam?
Shari’ ah (Islamic Law)
Islamic Economics
Islamic Financial System
The Concept of Islamic Banking
Goals and Strategies of Islamic Banks
Business Practices of Islamic Banks
Types of Contracts in Shari’ah
Stability of Islamic Banking System
Efficiency and Justice in Islamic Banking
Feasibility of Islamic Banking
The Role of Shari’ah Advisory Boards in Islamic Banks

Chapter – IV

Malaysia and its Economy
Establishment of Tabung Haji and its Performance
Establishment of Bank Islam Malaysia Berhad and its Performance
Government Investment Certificates (Non-Riba)
Laubuan International Offshore Financial Centre (IOFC)
A Broad Variety of Instruments
The Interest-Free Banking Scheme (SPTF)
An Islamic Inter-bank Market
Islamic Banking Key Data
The National Shari’ah Advisory Council on Islamic Banking And Takaful (NSAC-IBAT)

Chapter – V

The Concept of Development
Economic Development
Historical Background of Economic Development
Economic Development in an Islamic Perspective
Economic Development with Justice
The Role of Banking in Economic Development
The Contribution of Islamic Financial techniques to Economic Development
Islamic Bank Bangladesh Limited (IBBL) and its Role in the Economic Development of Bangladesh

Chapter – Vi

Middle Eastern Countries (excluding G.C.C. countries)
South Asian Countries
Southeast Asian Countries
Europe and America

Chapter – VII



Legal Framework of BIMB
Deposit Mobilization and Financing in BIMB
Accounting Procedures of BIMB
Addresses of Islamic Banks and Financial Institutions
Phone, Fax and Telex Nos. of Islamic Banks & Financial Institutions