Preview
Preview

Essay on The Evolutions of Isamic Finance in Malaysia

No Works Cited
Length: 2550 words (7.3 double-spaced pages)
Rating: Purple      
Open Document
Need writing help? Check your paper »



- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


ISLAMIC FINANCE

THE EVOLUTIONS OF ISLAMIC FINANCE IN MALAYSIA



INTRODUCTION
Islamic finance is the provision of financial services on a basis that is compliant with the principles and rules of Islamic commercial jurisprudence and a branch of Islamic Shari’ah jurisprudence. This means, all the operations in the bank must base on Shari’ah jurisprudence including of remittance business, letter of guarantee, letter of credit and foreign exchange. The main factor that differentiating between Islamic bank and conventional bank is all his business are conducted without any elements of interest. Interest also known as riba in Islam. This is because Islam prevent Muslim to give and take riba in all matters. Other than that, the main objective establishment of Islamic banks to meet the needs of Muslims in the banking business. Basic business operations is also based on the resolution of Al-Quran and Hadith, which is based on the concept of fair and in the interest of society. The concepts of Islamic finance also means of prohibition pf fixed return, profit and loss sharing and hence risk sharing, prohibition of gharar ( uncertainty ), speculation and gambling.
HISTORY OF ISLAMIC FINANCE IN MALAYSIA
In 1980
At the Kongres Ekonomi Bumiputera in 1980, the Lembaga Urusan dan Tabung Haji be allowed to establish Islamic banks that aim to collect and invest the money belonging to Muslims.
In 1981
Government urged to take immediate action to establish laws for the establishment of banks and financial institutions that operate based on the principles of Islam.
30 July 1981
The government has established Jawatankuasa Pemandu Kebangsaan Bank ...


... middle of paper ...


...titutions that deal in a financial system also has advantages in terms of competitiveness. Therefore, the banking institutions in Malaysia will increase the competitiveness and quality of service and quality of their products to attract customers.
ESTABLISHMENT OF LEMBAGA TABUNG HAJI
Lembaga Tabung Haji board established in 1969 to save money savings Muslim community who want to perform hajj. Hajj affairs fund administered by the laws of shariah. Lembaga Tabung Haji are increasing, particularly in diversified towards investments that will generate revenue and profits.
ZAKAT
Zakat is the amount of certain property required gods to persons entitled to receive in addition to producing a certain amount itself. Zakat laws of each state in Malaysia enacted by the Majlis Perundangan Negeri, respectively. Zakat can prevent a Muslim from jealousy and greed to others.




Click the button above to view the complete essay, speech, term paper, or research paper

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »







This essay is 100% guaranteed.


Title Length Color Rating  
Islamic Banking and Finance Essay - 1.0 INTRODUCTION 1.1 Background Study The Islamic banking and finance sector is a fast growing industry, where it expanding and getting stronger each and every year. According to Tahmoures (2013), there are over 300 Islamic banks and financial organizations successfully running their business from Dubai, Los Angeles, London, Karachi, Jakarta, Cairo, Riyadh and many other cities in the world. The Financial Times estimates the value of the industry in overall are exceeding $1 trillion (Christophe, Rima, Laurent, Financial Times Special Report, 2010)....   [tags: Islamic Banking Essays]
:: 14 Works Cited
1937 words
(5.5 pages)
Strong Essays [preview]
Essay on An evaluation of property tax system in Malaysia - 1.0 Introduction Rapid population growth and increasing urbanization have triggers increases in demand for real property. These developments ultimate translate to the responsibility of local authority in providing facilities for the public. Therefore, local government need some sources to provide these facilities. Basically local government income comes from taxes, fees and fines. Property taxes are the largest fund and backbone of municipal finance which is used to provide amenities and services....   [tags: Government, Malaysia's Real Property] 1696 words
(4.8 pages)
Better Essays [preview]
The Advantages of Islamic Finance and Banking Essays - As the world has recently passed through the global financial crisis that begun in 2008 in the USA with the banks’ collapsing, analysts are giving different opinions and making new economic hypothesizes about the origin of, as well as the process of different countries escaped from the crisis. Among all these new “theories”, the case of Islamic banks is interesting in terms of its nature and consequences. In my essay, I will try to highlight the basic principles of the Islamic finance, the reasons of the restriction of interest, the most important tools used by Islamic banks in economic activities and brief explanation of them, and finally my view point of the probable future improvement of...   [tags: Islamic Banking]
:: 3 Works Cited
1173 words
(3.4 pages)
Strong Essays [preview]
Essay about The History and Development of Islamic Finance - INTRODUCTION Defination of Islamic Finance Islamic finance means is the provision of financial instrument and services that follow the principle and rules of Islamic commercial jurisprudence, a branch of Islamic shariah jurisprudence. It also can be defined as a complete system that prescribes specific patterns of social and economic behaviour for all individual.The main principle of Islamic finance is its adherence to interest or riba. Below this explain the term that prohibits in Islam: a) Riba Riba or usuary is the predetermined interest collected by a lender , which lender receives over and above principal amount it has lent out b) Gharar Gharar...   [tags: economic, interest, investment] 1783 words
(5.1 pages)
Better Essays [preview]
The Young World of Islamic Finance Essay - ... There are several ways in order to increase public awareness toward the Islamic products and services. The ways includes, public education campaign, inclusion of the Islamic banking concept in school curriculum, making Islamic financing course a part of business administration programs and offering full fledge degree programs in Islamic financing. DEVELOPMENT OF ISLAMIC FINANCE IN MALAYSIA Development of Islamic Finance in Malaysia started when Pilgrimage Fund (Tabung Haji) was established in year 1963 as the first Islamic saving institution....   [tags: economy, investment, muslim] 3177 words
(9.1 pages)
Powerful Essays [preview]
Islamic Banks in Malaysia Essay - Several financial and economic crisis including the Asian Financial Crisis in 1997 and recent crisis; subprime mortgage crisis has triggered financial instability all over the world. The conditions in the global financial system has deteriorated sharply as the idiosyncratic funding and asset liquidity tighten and unexpected-larger losses associated with sub-prime related portfolios have weaken the balance sheet of global financial institutions. Furthermore, these disruptions in the financial markets also causing constraint to the flow of credit to household including families and to the business entity....   [tags: World Economics] 1320 words
(3.8 pages)
Strong Essays [preview]
Essay on What is Islamic Finance? - INTRODUCTION What is Islamic Finance. Islamic finance is a financial system that operates according to Islamic law (which is called sharia) and is, therefore, sharia-compliant. Just like conventional financial systems, Islamic finance features banks, capital markets, fund managers, investment firms, and insurance companies. However, these entities are governed both by Islamic law and the finance industry rules and regulations that apply to their conventional counterparts. Therefore, islamic finance is to be assets based as oppose to the currency based whereby investment structured on exchange or ownership of assets, and money is simply mechanism for transaction process....   [tags: sharia, liquidity, risk] 3003 words
(8.6 pages)
Strong Essays [preview]
Concepts of Islamic Finance Essay - ... The principle in Islamic finance include the prohibition of any predetermined payment over and above the principal amount (riba), prohibition of the transaction involving uncertainty about subject-matter and term of contract (gharar) which is refer to the selling of goods that does not exist or does not owned, prohibition on maisir which is refer to the transaction based on speculating or gambling and prohibition on the investment by dealing with unlawful or haram business such as drugs, alcohol and gambling....   [tags: shariah, interest, banking] 878 words
(2.5 pages)
Strong Essays [preview]
Islamic Finance Industry Essay - Islamic finance industry in Malaysia has been in existences more than 30 years. The enactment of the Islamic Banking Act 1983 enabled the country’s first Islamic Bank to be established. Malaysia’s long track record of building a successful domestic Islamic financial industry of over 30 years gives the country a solid financial that adds to the richness, diversity and maturity of the financial system. (RosniaMasruki, 2010). Before the advent of Islamic banks, financial market had been monopoly by conventional banks....   [tags: banking, crisis,economy] 933 words
(2.7 pages)
Better Essays [preview]
Essay on Finance - Finance Wikipedia's accurate definition of finance is "The activity of finance is the application of a set of techniques that individuals and organizations (entities) use to manage their financial affairs, particularly the differences between income and expenditure and the risks of their investments" http://en.wikipedia.org/wiki/Finance. I discuss the importance of keeping track and updating financial reports as well as simple bank statements. These are just some of the essentials that I believe we all as a people should acknowledge....   [tags: Business Finance] 1805 words
(5.2 pages)
Powerful Essays [preview]