Mudarabah in Islamic Banking - Admission/Application Essay Example

Only on StudentShare

Extract of sample
Mudarabah in Islamic Banking

It is the means by which bonding is done between two participants such that one of them is the financer and the other is the manager or the mudharib. While the investor or the RabbulMal is responsible for any losses made in the transaction the Mudharib suffers only the loss of the efforts put by him. The bank often acts as the Rabbul Mal or the capital provider who provides capital to the entrepreneur. The funds provided by the bank can be used by the entrepreneur upon his discretion. The profit attained by using rabbul mal’s funds would be divided amongst the investor and the user with respect to a pre-decided profit sharing agreement. While the bank provides the investment, the entrepreneur is responsible for all the skill and the expertise incorporated within the project. The part of profit that is attained by the bank becomes his right only by virtue of the fact that he is the sole entity responsible for any losses that incur within the business. This relationship of profit sharing by the bank and the entrepreneur continues until the loan is not paid back in full by the entrepreneur. The role of Bank in the type of Mudharabah discussed above may be demonstrated in figure 1. ...Show more

Summary

[Name of the Writer] [Name of the Professor] [Name of the Course] [Date] Mudarabah in Islamic Banking The financial System in Islam is governed by the principles governing financial matters that are quoted in the religion of Islam. ISLAMIC BANKING The mode of banking in the religion of Islam is Shariah compliant…
Author : ondrickapat
Save Your Time for More Important Things
Let us write or edit the admission/application essay on your topic
"Mudarabah in Islamic Banking"
with a personal 20% discount.
Grab the best paper

Related Essays

Differences between Islamic Financing Methods and Conventional Financing Methods
The research presents a thorough analysis of the basic difference between Islamic and conventional financing methods through literature analysis and effective research methods. The primary research collected from respondents helped in understanding their views and opinions on Islamic and conventional financing methods.
29 pages (7250 words) Research Paper
Islamic Financial System as an Effective Planning & Control Framework in Kuwait
The process of planning is considered to be quite integral for organizations as it aids the organizations in establishing its intentions and objectives along with ascertaining the ways of attaining them. The functions of planning along with control assists in building extensive principles or instructions for the reason of ensuring the appropriate distribution of the accessible resources with regard to the organization.
15 pages (3750 words) Admission/Application Essay
Islamic banking in the GCC in the Next ten Years
This bank was brought into existence by Ahmed El Najjar’s pioneering efforts. The fundamental principal according to which this bank worked was profit sharing on the basis of Shariah’s non-interest based philosophy. It took only 13 years till 1976 for nine more banks like this to open in Egypt.
20 pages (5000 words) Essay
Islamic Banking Operations and Instruments
This means that banking operations, as all business activities, can be related to the local culture, even if such perspective cannot be fully understood in the context of modern markets. The above view is verified through the following fact: Banks and financial institutions based on Islamic law have been already well established globally even this phenomenon would not be expected in the past.
30 pages (7500 words) Research Paper
Lower Division Capstone: L.A Lounge
Before starting any business, the owner who inject the capital i.e. the ones who the business, tend to evaluate all different options before taking initiating on with a business. Investors evaluate and predict the outcomes and the results of any given business before they invest in any project and hence when they find any project worthwhile, they invest in it.
6 pages (1500 words) Research Proposal
Investment Analysis: Sports Direct vs. JJB Sports
The company has been able to earn a healthy EPS of 15.73 in the FY 2010. However, the performance of EPS declined in the year 2011. It came down to 14.8. The result of this decline in performance is because the company the company’s efficiency has decreased in terms of cost of making goods.
4 pages (1000 words) Essay
Islamic Banking
In order to provide the mentioned topics above, different studies and empirical evidence have been provided in the report. Islamic Banking a) Before proceeding with the origins of Islamic Banking, it is necessary to be familiar with the definition of Islamic Banking.
6 pages (1500 words) Essay
Differences between Islamic and Conventional Banking
This may depend on the geographical and demographical position of the system, the social structure that surrounds it, among many other factors (Quresh, Hussain & Rehman 2012). The Islamic community dictates that things must be done differently, so that the culture and traditions of people can be maintained.
3 pages (750 words) Essay
The effect of financial crisis on Islamic banking Compared with non-Islamic banking in Gulf council countries (GCC)
The largest Islamic banks (IBs) belong to the countries of the Gulf Cooperation Council (GCC). The 2008-2010 global financial crises brought a fresh perspective on the relationship between financial stability and Islamic banking, especial in relation to the flexibility of such an industry during financial crises.
6 pages (1500 words) Essay
In excel:
To do this, a spreadsheet named “Profit Analyzer” was created that projects the expected profits depending on how these two chosen parameters are expected to vary quarterly i.e. their percentage rate of increase or decrease (Ken Kaufaman, 2010). When a
2 pages (500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT