In 1963, a new set of banking was started when Ahmad Elnaggar opened the first Islamic Bank ever in the world. Being in an Egyptian town of Mit Ghamr, the bank was operated based on profit sharing system. Later, in 1975, the first modern commercial Islamic bank, Dubai Islamic Bank, opened its doors to the public. In the same year, Islamic Development Bank was established which signs the internationalization process of Islamic banking and finance. Today, Islamic banking and finance is no more a new thing to the world. From Egypt to Malaysia to United States, Islamic banking and finance is recognized and practiced throughout the world. Given all the developments, the history of banking system still develops everyday and every second. The main operation of Islamic banking is sales while the main operation of conventional banking is interest based loans. By analyzing banking system, we will find major differences between both transactions, especially in practical side.
Posted on: Fri, 28 Jun 2013 15:57:14 +0000
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