Difference Between Commercial Bank and Islamic Bank
Product Differentiation between Islamic Banking and Conventional Banking
Submitted to:
Quazi Sagota Samina
Senior Lecturer,
Department of Business Administration.
East West University, Dhaka.
Submitted by:
Name ID
Arafat Rauf 2009-2-10-345
FIN 380
Section: 2
Group: 10
Fall: 2011
Date of Submission: 23rd October 2011
Table of Content
Executive Summary 3
Objective of the Study 3
Limitation of the Study 3
Analysis 4
Bibliography 12
Executive Summary
Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia’h) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called riba. Generally, Islamic law also prohibits trading in financial risk (which is seen as a form of gambling). In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haraam.
Islamic finance has been gaining momentum on a global scale for the last 30 years.
Conventional banking is based on collateral. In conventional banks charging interest does not stop unless specific exception is made to a particular defaulted loan. Interest charged on a loan can be multiple of the principal, depending on the length of the loan period. More than half the population of the world is deprived of the financial services of the conventional banks. Objective of the Study
Our objective of the study was to know the product differentiation of Islamic Bank and Conventional bank. In which way they differ from each other. In our case, we have use Shajalal Islamic Bank as an Islamic bank and Uttara Bank as a Conventional bank. We mainly focus on to know the difference of Islamic bank and conventional bank.
Limitation of the Study
Although we have tried our best to make this term paper perfect but there were some limitations that obstructed us from doing so. We have faced some problems while preparing this report. Some of the limitations
Submitted to:
Quazi Sagota Samina
Senior Lecturer,
Department of Business Administration.
East West University, Dhaka.
Submitted by:
Name ID
Arafat Rauf 2009-2-10-345
FIN 380
Section: 2
Group: 10
Fall: 2011
Date of Submission: 23rd October 2011
Table of Content
Executive Summary 3
Objective of the Study 3
Limitation of the Study 3
Analysis 4
Bibliography 12
Executive Summary
Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia’h) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called riba. Generally, Islamic law also prohibits trading in financial risk (which is seen as a form of gambling). In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haraam.
Islamic finance has been gaining momentum on a global scale for the last 30 years.
Conventional banking is based on collateral. In conventional banks charging interest does not stop unless specific exception is made to a particular defaulted loan. Interest charged on a loan can be multiple of the principal, depending on the length of the loan period. More than half the population of the world is deprived of the financial services of the conventional banks. Objective of the Study
Our objective of the study was to know the product differentiation of Islamic Bank and Conventional bank. In which way they differ from each other. In our case, we have use Shajalal Islamic Bank as an Islamic bank and Uttara Bank as a Conventional bank. We mainly focus on to know the difference of Islamic bank and conventional bank.
Limitation of the Study
Although we have tried our best to make this term paper perfect but there were some limitations that obstructed us from doing so. We have faced some problems while preparing this report. Some of the limitations
Bibliography: (all are accessed in 21st October 2011)