The key concepts of Islamic Finance
Islamic finance is an alternative to traditional finance. It allows interest-free financing of projects. Here are its key concepts.
Category: Islamic finance
Islamic finance (IF) is based on Islamic law. An essentially religious right. It aims to safeguard reason and the integrity of the religious message, the continuity of procreation, the protection of property. In this perspective, the IF must respect a certain number of principles in order to be in conformity with the will of God.
The 14 most used Islamic financial instruments
What are the most used Islamic financial instruments? This question is the reason for this article. In fact, Islamic finance as an alternative to conventional finance offers a number of financial instruments. However, these instruments must be Sharia compliant. These instruments are more generally classified into three categories. We have financing instruments, participation instruments and non-banking financial instruments. For this article, I present to you the most used financial instruments.
Why analyze and understand an Islamic bank?
With the dematerialization of the markets, financial information is now disseminated on a global scale and in real time. This increases the level of speculation which in turn leads to very high volatility in the markets and exposes the banks. Thereby, Finance de Demain, proposes to present to you the reasons why it is necessary to analyze and understand these Islamic banks in order to better invest.
The particularities of Islamic banks
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Islamic banks are institutions with a religious reference, that is to say based on respect for the rules of Islam. Three main elements make the particularities of Islamic banks compared to their conventional equivalents.
Principles of Islamic Finance
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The functioning of the Islamic financial system is governed by Islamic law. However, it is important to point out that one cannot understand the operating principles of Islamic law on the basis of laws and methods of analysis used in conventional finance. Indeed, it is a financial system which has its own origins and which is based directly on religious precepts. Thus, if one wishes to adequately apprehend the different functioning mechanisms of Islamic finance, one must above all realize that it is the result of the influence of religion on morality, then of morality on law. , and finally economic law leading to finance.