Islamic Banking Unveiled: Navigating Financial Services for MOESLEMs
Islamic Banking: What It Is and How It Works
Islamic banking is a system of banking or financial services that is based on Islamic law (Shariah). It is a distinct alternative to conventional banking, which is based on interest (riba). Islamic banks offer a variety of financial products and services that are compliant with Shariah, such as:
- Deposit accounts: Islamic banks offer savings and current accounts that pay a profit-sharing return instead of interest.
- Loans: Islamic banks offer financing options that are based on profit-sharing or lease-to-own arrangements.
- Investment products: Islamic banks offer a variety of investment products, such as mutual funds and stocks, that are screened for Shariah compliance.
Islamic banking is growing in popularity around the world, as more and more people are looking for an alternative to conventional banking. In 2019, the global Islamic banking industry was worth $2.2 trillion and is expected to grow to $3.2 trillion by 2024.
The Benefits of Islamic Banking for Muslims
There are a number of benefits of Islamic banking for Muslims, including:
- Avoidance of riba: One of the main benefits of Islamic banking is that it avoids riba, which is considered to be a major sin in Islam. Riba is defined as any interest or increase in a loan that is not due to the actual increase in the value of the underlying asset.
- Socially responsible investing: Islamic banks are required to invest in projects that are beneficial to society, such as healthcare, education, and infrastructure. This helps to create a more sustainable and equitable economy.
- Increased financial security: Islamic banks offer a variety of financial products and services that can help Muslims to achieve their financial goals, such as saving for retirement, buying a home, or starting a business.
How to Find an Islamic Bank in Your Area
If you are interested in Islamic banking, there are a few ways to find an Islamic bank in your area. You can:
My transfer was cancelled then I was asked for more information After 3 tries and multiple phone calls to get it right I sent PDF files of my bank account and Utility for address verificationOur experts answer readers banking questions and write unbiased product reviews heres how we assess banking products In some cases we receive a commission from our partners however our Online banks and banking service providers offer desktop and mobile banking services without physical branches Because online institutions dont have to pay for the cost of maintaining branches Most of us wouldnt feel very safe keeping all of our hardearned cash under our pillows at night so we open bank accounts and park our cash there instead But picking the right bank or credit Kiah Treece is a licensed attorney and
small business owner with experience in real estate and financing Her focus is on demystifying debt to help individuals and business owners take control of Clint Proctor is a Lead Editor with the Credit Cards and Travel Rewards team at Forbes Advisor He has five years of experience in personal finance journalism and has contributed to a variety of Our experts answer readers investing questions and write unbiased product reviews heres how we assess investing products Paid nonclient promotion In some cases we receive a commission from Showcase your company news with guaranteed exposure both in print and online Join the Denver Business Journal as we celebrate our 75th anniversary This isnt just Denver Business Journals Like millions of Americans at one time or another you probably have asked
yourself Do I need a financial advisor The motivations for hiring a financial advisor vary but major reasons Though originally founded in 2000 as an international moving and logistics company International Van Lines IVL now offers fullservice residential moves in all 50 states Depending on your CBS Essentials is created independently of the CBS News editorial staff We may receive commissions from some links to products on this page Promotions are subject to availability and retailer We sell different types of products and services to both investment professionals and individual investors These products and services are usually sold through license agreements or subscriptions
- Search online: There are a number of websites that list Islamic banks around the world. Some popular websites include:
- Contact your local Muslim community: Your local Muslim community may be able to provide you with information about Islamic banks in your area.
- Call or visit a local bank: You can also call or visit a local bank to inquire about their Islamic banking products and services.
Islamic banking is a growing and popular alternative to conventional banking. It offers a number of benefits for Muslims, such as the avoidance of riba, socially responsible investing, and increased financial security. If you are interested in Islamic banking, there are a number of ways to find an Islamic bank in your area.