Prayer Time

  |      |      |   The Message of Islam:

The word "Bank" originated from Italian word "Bancs" refers to where they used to keep their things, like currencies, on tables made of glass faces. If any of them seized to pay his obligations before others, he would be penalized by ordering the gathering to publicly destroy his table beyond repair to humiliate him. The process of destroying the Italian glass-table is called "Bancaratta" and it is from this word originated the word "Bankruptcy" which is being used in all European countries.


According to Mu'jamu-l- waseet, a bank is a financial institution, which engages in loan operation through borrowing and lending. Islamic banking has different definitions but all are tending towards the same meaning. Among which are:


1 – According to the treaty of establishing international union for Islamic Banking; these are banks or institutions, whose bye-laws clearly stipulate their adherence to Islamic principles without dealing with interest in any form.


2 – Islamic Bank is a financial institution which gathers financial resources from the public and effectively invests the resources. It is also responsible for its development according to the established Islamic principles, through which it serves the people and works toward economic development of the country


3 – According to Dr. Ahmad An-Najjar: it is a financial institution، which accepts and invests financial resources according to Islamic frame work، through which it contributes to building an wholesome Islamic society، and ensuring an evenly distribution and placing wealth in Islamic channel.


4 – Islamic Bank is a banking Institution which all its banking operations investment and administrative activities abide by the Islamic principles and external goals.


5 – Every institution that deals in banking operations and adheres to the principle of transacting without interest in all form.


All these definitions indicate that Islamic banking is a business institution that operates within the limit of Islamic principle in all its banking operations.


In addition, describing bank with the word "Islamic" is a definite identity of compliance to which the bank adheres in its dealings with the public, be it depositor, financier or investor. It is a method of adhering to the basic principles, which aims at purifying banking operations from any un- Islamic acts, with the provision of adequate Islamic alternatives.


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