Talking about Islamic Banking and Islamic Finance, the leader of The Republic of Turkey President Recep Tayyip Erdogan stated, “Istanbul’s newly built financial center will also make it a leader in the sector, given its geostrategic advantage” in the twelfth International Conference on Islamic sharia-compliant finance through videoconference.
Turkey’s job in Islamic Banking and Islamic Finance
“Islamic finance is our exit out of this framework,” Erdogan stated, focusing on the significance of interest free, participatory and accordingly an optional money lending framework.
What is Islamic banking or Islamic finance ( مصرفية إسلامية) or sharia-compliant finance
It is banking or financing activity that complies with sharia (Islamic law) and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include Mudarabah (profit-sharing and loss-bearing), Wadiah (safekeeping), Musharaka (joint venture), Murabahah (cost-plus), and Ijara (leasing).
The Qur’an prohibits riba, which literally means “increase”. Technically riba is the increase when liquid or fungible assets (cash, debt, grains, etc.) are exchanged other than at par value. The most prevalent example in today’s economy is lending money at interest, for example an exchange of $100 cash now for $110 payable in a year’s time, an increase of $10. (Some Muslims dispute whether there is a consensus that interest is equivalent to riba).[2][3] Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also haraam (“restricted, or excluded”).
These prohibitions have been applied historically in varying degrees in Muslim countries/communities to prevent un-Islamic practices. In the late 20th century, as part of the revival of Islamic identity,[4][Note 1] a number of Islamic banks formed to apply these principles to private or semi-private commercial institutions within the Muslim community.[6][7]
How many banks are complying with Islamic banking and Islamic Finance?
Their number and size has grown, so that by 2009, there were over 300 banks and 250 mutual funds around the world complying with Islamic principles,[8] and around $2 trillion was sharia-compliant by 2014.[9] Sharia-compliant financial institutions represented approximately 1% of total world assets,[10] concentrated in the Gulf Cooperation Council (GCC) countries, Iran, and Malaysia.[11] Although Islamic banking still makes up only a fraction of the banking assets of Muslims,[12] since its inception it has been growing faster than banking assets as a whole, and is projected to continue to do so.[9]
The industry has been lauded for returning to the path of “divine guidance” in rejecting the “political and economic dominance” of the West,[4] and noted as the “most visible mark” of Islamic revivalism,[13] its most enthusiastic advocates promise “no inflation, no unemployment, no exploitation and no poverty” once it is fully implemented.[14][15] However, it has also been criticized for failing to develop profit and loss sharing or more ethical modes of investment promised by early promoters,[16] and instead selling banking products[17] that “comply with the formal requirements of Islamic law”,[18] but use “ruses and subterfuges to conceal interest”,[19] and entail “higher costs, bigger risks”[20] than conventional (ribawi) banks.
Related Islamic banking and Islamic Finance Articles:
- Is small the new big? Islamic banking for SMEs in Turkey
- Does Islamic Banking Contribute to Economic Growth and Industrial Development in Turkey?
- Islamic banking assets in Turkey to double in 10 years, Moody’s says
- Islamic Finance System in Turkey
Recent Videos about Islamic banking and Islamic Finance in Turkey
Newly Added Products to YeniExpo
Metal Scrap
Hydraulic Metal Baler Machine Scra
Dining Room Furniture
Milano Classical Dining Table Set
Dining Room Furniture
Saltanat Classical Dining Table Se
Bedroom Furniture
Milano Classical Bedroom Furniture
Bedroom Furniture
Deko Classical Bedroom Furniture R
Bedroom Furniture
Ruya Classical Bedroom Furniture R
Bedroom Furniture
Saltanat Classical Bedroom Furnitu
Honey Products
Kraliçe Bee Pollen Healthy ORGANI
Turkish Manufacturers Exporters Business Growing Proven Directory 2021
Turkish Exporters B2B Marketplace and Extraordinary Digital Fair 2021
2020 الزجاج التركي ينافس عالميا.. كيف استطاعت تركيا فعلها مجدداً ؟
تركيا.. صادرات ملاطية من المشمش المجفف تبلغ 236 مليون دولار
حصاد تركيا الاقتصادي في 2020 مع المحلل السياسي التركي يوسف كاتب أوغلو
Yurt Dışı Lojistik Merkezleri E-ihracatı Canlandıracak – Süper Yüzde 70 Gider Desteği
TIM Kadın İhracat Görüşmeleri’ Başladı – 4 Trilyon Dolarlık Potansiyel Tüketici Pazarına Ulaşmak
Endonezya’ya İhracat: 2023’e Kadar 10 Milyar Dolarlık Yeni Hedef
Kolay İhracat Platformu ’na Iki Ayda Büyük Ilgi – YENI 2021
YeniExpo Marketplace B2B Company and its Effective NEW Services 2021
Foreign Visitors are WELCOME to Turkey – Hoş Geldiniz Amazing 2021
Turkey Visas Fast e-Visa Information Page NEW 2021
US Turkey Exporter Guide 2021
Turkey a BRIGHT Star in the Sky of Economy and World Politics 2021
The Bright Future of Turkey’s Economy 2023