Nowadays, Islamic finance is just the same like conventional

Nowadays, Islamic Finance is important in banking. In Malaysia, why
Islamic finance is important in banking because Malaysia such as Islamic
country and the majority of the people are Muslims. The definition of Islamic
Finance is a financial system that operates according to Islamic law which is
called ‘sharia’. Islamic finance is just the same like conventional financial
system, but Islamic finance from the features banks, capital markets, fund
managers, investment firm and insurance companies are governed by Islamic law
and regulations based on sharia. The important of Islamic finance in banking is
sharia prohibits certain element that are common in conventional financial with
interest such as Riba, other than that, it is important because the majority in
this country are Muslims. Islamic finance is important in economic transactions
and related in a fair market economy and also involved in banking.  

                From the topic, why Islamic
finance is important in banking is sharia prohibits certain elements that are
common in conventional for example interest which is Riba. Nowadays, majority
of the banks in every country have a higher interest rate on their customers to
take profit such as Riba. The interest such as Riba should not supposedly exist
because it is multiple into more than what would be due. Shariah prohibits the
fixed or floating payment or acceptance of specific interest or fees for loans
of money. Investing in the businesses of the company or organization that
provide goods and services considered contrary to Islamic principles is also
Haram (forbidden). When we put the concept Islamic finance in banking, we can
avoid the interest such as Riba from injustices to the public for having the
benefits and wealth without doing anything.

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                Other than that, the importance
of Islamic finance in banking is because in Malaysia, the majority in this
country are Muslims. As a Muslims, we must know anything that lawful or illegal
in our religion. Furthermore, it is a for every Muslim who wants to make any
financial that based on the laws and regulations according with sharia to avoid
everything that not from our religion. A Muslim also needs to know what is
lawful and what is illegal in our own religion. Before do any financial need to
make sure all of that. In contrast with conventional banks, Islamic banks not only
consider the credit. So, worthiness and interest rate as standards, instead
they must apply Islamic moral or ethical criteria in their provision of
financing.

                Then, why Islamic finance is
important because economics transactions should take place in a fair market
economy and totally also involved in banking. Islam enables the creation of an
independent economic market where supply and demand are on the market but the
market mechanism imposes certain laws and ethics based on Islam. Then, economic
development through process and competition involving banking, where market
mechanisms are based on Islamic finance. Besides that, central to Islamic and
finance is the fact that money itself has no instrinsic value. The principal
basis of Islamic finance is based on the concept of trading involving the
sharing of profit and risk (loss).

                As the conclusion, it is widely
acknowledge that the ability of sharia. Besides that, compatible banks has
increased banking habit in the Muslim community. So, Islamic finance is
important in banking because it should provide a unique advantage to bring them
closer to the actual Islamic sharia rules and law of our religion which is
Islamic.

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