Throughout our lives, we continue to learn. And Islamic Banking demands us to continuously learn and seek to learn.
While I have this grand design to educate people on Islamic Banking via this website, the truth is, there is so much more for me to learn. Over time, I do not just learn from teachers, but the person I teach as well always teaches me back on something. Either through feedback or comments or their own observation. I learn something each day.
This website was created to house all of what I have gathered and learnt. But learning this is just the tip of the iceberg. So much to learn, so little time.
Hi, I’m a bit confused on a topic. Is the Islamic banking system and islamic financial system the same thing? I’m supposed to do a comparison between Islamic financing and conventional financing so if i were to state that the differences between them, would they be the same to the general differences between the two banking systems? Since finance is under the banking system, so it would automatically follow as to what the banking system follows right? please reply asap, tysm!
Maybe the terms have been used interchangeably. I usually use “Banking” because my rationale is that conventional banking itself constitutes 2 elements ie deposits and loan. For Islamic, Banking constitutes Deposit/Investment & Financing. In my opinion, if I use Islamic Banking, then it should cover Deposit/Investment/Finance/Accounting/Financing/Trading/Services/Treasury.
Therefore if I use Islamic Financing,it only refer to areas where financing is involved ie debt. It may just be a subset for the bigger Islamic Banking.
Also, previously, there is a differentiation where and Islamic Banking company is different from Islamic Finance company. Islamic Finance Company is associated to a financing arrangement to purchase moveable assets or hire purchase. The scope for Islamic Banking is bigger, in my opinion.
Hope that answers your question?