Islamic and Conventional Banking Practice

In: Business and Management

Submitted By motiur
Words 1751
Pages 8
ISLAMIC AND CONVENTIONAL BANKING PRACTICE

Abstract:

A major negative feature of Capitalism is it helps rich and neglects poor. The movement of Capitalism is helped by interest based banking. Interest based banking is strives to secure their provided fund and get the profit without taking any risk. Such activities are helpful for those who have asset to prove that they are secure for any fund to be provided. To change this type of philosophy profit based bank is a very strong competitive at the market, which bear the risk to make the profit. There have many problems on the way of operation of profit based bank. In which area verity of religion is present among the people the problem is stronger. Many people take it easily because it is the part of their religion and many people refuse it because it has no importance in their religion. In Sylhet Islamic Banking faces many problem in operation.

Introduction:

Sylhet is the city in northeastern part of Bangladesh having variety of people from different religions. Sylhet is a holy place for both Muslim and Hindus. Followers of Different religions in this city are: Muslim 81.16%, Hindu 17.80%, Christian 0.06%, Buddhist 0.02% and others 0.96%[6]. Remittance is the key element of the economic growth of Sylhet the money is sent by the people living abroad from the city. The commercial banks have deposits of 4,000 crore taka in Sylhet [7] .They distribute this deposits among the people seeking loans. In Sylhet city there have many Islamic banks and conventional banks running their activities.

Literature Review:

Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (sharia’h) principles and guided by Islamic economics. In Islam usury is prohibited, collection and payment of interest known as riba is also prohibited. It also prohibits trading…...

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