Islamic communication and banking operations

Banking Law & Islamic Banking

In every aspect of the world, there is a set of rules that govern areas in order to maintain order and prevent any problems or have control over it. In the domain of banking, there is a law that ensures that every transaction is correct and fair. The banking law is a body of rules to ensure the integrity of banking transactions. Banks play a vital role in driving the economy by providing various services such as safeguarding, lending money, advising businesses and so on. As a result, there is a requirement for a legislation that can organize and observe these transactions.

Islamic Finance in UAE Islamic finance is based on the rules of Islamic law called ‘Sharia’. Islamic finance is not a religious finance. It is an alternative method to the traditional finance. It is where finance is managed with social responsibility as opposed to traditional one, which is focusing only on profit. Of course, while making a profit, it endeavors in the upliftment of society as a whole. It is based on the principle of identifying the need of the customer and developing right solutions by appropriate funding technique which is mutually beneficial to the bank and customer. A number of Islamic finance institutions exist in most of Europeans countries. In particular, the British government is carrying out several legal reforms in order to attract Islamic investments with its aim to become a global Islamic finance hub. After the global financial crisis, it’s highly felt that there is a need for the Islamic financial and banking system to cure the defects in the global financial system.