Islamic Financial 2

Islamic financial and actuel crisis Misbih maryam

plan  Introduction  definition  Principles  Islamic

banking  Crisis Impact on islamic banking

introduction 

Islamic finance, a booming market

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It is a new financial model based on Sharia law of the famous Koran, the funds are for 30 years.Il y a a verse of the Koran that says God allows the sale and prohibits usury{ ‫حّرَم الّربا‬ َ ‫ل اْلَبْيَع َو‬ ُّ ‫حّل ا‬ َ ‫} وََأ‬: ‫قوله تعالى‬ 275:‫ ))البقرة‬. it is based on this principle

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an engine for the economy, an alternative ethics

définition 

A set of strict rules that forbid making or receiving interest payments. To get around this prohibition, trade financing is obtained by buying inventory that will be resold at a predetermined price on a future date, which is called Murabaha. Financing for capital projects is called Musharaka, which is funding by two or more parties who may be active managers in a partnership. Losses are shared on the basis of the capital contribution. Profits may be shared in any way the partners decide. See also Istisna, Qardhul Hasan, and Riba.

What are the foundations and main objectives of Islamic finance It’s 4 principles:  Principle 1:the prohibition of riba (usury).  Principle2:the prohibition of gharar und maysir (incertitude ,speculation)  Principle3: investing in businesses that provide goods or services considered contrary to its principles (Haraam 

Principle3 :Obligation to share profits and

losses in all financial trasanction

Islamic banking 

Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. Sharia prohibits the payment of fees for the renting of money (Interest|Usury|Riba) for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles (Haraam). While these principles were used as the basis for a flourishing economy in earlier times, it is only in the late 20th century that a number of Islamic banks were formed to apply these principles to private or semi-private commercial institutions within the Muslim community

Example of islamic banking  Al-Rajhi

Bank (Saudi Arabaie): $ 40 billion of assets at the end of June 2008  Kuwait Finance House (Kuwait): 38.7 billion  Dubai Islamic Bank (UAE): 24.9 billion  Abu Dhabi Islamic Bank (UAE): 13.1 billion  Albaraka Banking Group (Bahrain): 11.1 billion

Crisis Impact on islamic banking This crises is due to the subprimes .whitch are loans that the america banks used to give without garantie. The islamic bank doesen’t influence by the actuel crisis because: It is 2dimensions that are prohibit by islam: 

Securities issued by the subprime market are corporate debt based on interest and the interest is forbidden by Islam. The islamic bank does not invest in subprime

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the prohibition of spéculation

conclusion 

Islamic finance is now between 500 and 800 billion of assets managed by the principles of Sharia and recorded a growth of over 20% over the last ten years. Especially since it is a young industry she has 30 years of existence.

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Given the current financial crisis, the Islamic financial industry should set up investment banks to implement the mission of the Islamic economic system and present the world a new vision and different methods of asset management and new products Investment for the true economic value, "said Ahmed Mohammed Ali, President of the Islamic développementannées Bank. especially since it is a young industry that it has 30 years of existence..

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finance islamique fait de plus en plus ses preuve et offre une alternative pour sauver le monde d'une catastrophe certaine

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D’ailleurs, la dernière étude de Moody’s, une agence de notation et d’analyse financière, évalue ce marché entre 500 et 700 milliards de dollars. Certains produits affichent une croissance impressionnante, c’est le cas par exemple du marché des obligations islamiques, les sukuks. "C’est un marché qui augmente de plus de 30 % par an", souligne notre invité, Anouar Hassoune, analyste crédit chez Moody’s. La finance islamique moderne existe depuis trente ans mais connaît un réel essor depuis quelques années seulement. Son développement est notamment considérable au Moyen-Orient et en Malaisie. La finance islamique s’exporte également, de plus en plus, dans des pays non musulmans mais accueillant une population musulmane très active… C’est le cas par exemple de certains pays africains et européens.