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The banking sector has a significant impact on a nation’s financial stability and economic development. As one of the fundamental components of the financial sector, banks offer services that are essential for the expansion of the markets. The stability of the financial system is significantly impacted by the efficiency of the banking sector. COVID...
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Context 1
... assets (having their own intrinsic value) are involved and used as products Money is used as a product and is the base of earning There is no concept of the time value of money and profit is earned through trading of goods and services. It is asset-backed financing where there always an asset involved and no concept of money (Awan 2009) This works on the principle of the time value of money and interest is earned on money/capital Loss is shared among banks and the organization/individual when they incur any loss Loss is not shared and the organization/individual has to pay the interest even if it incurs any loss ( Arslan et al. 2020) A balanced budget is maintained as no more money is created (issuing bonds or printing new notes for deficit) ...Similar publications
This paper examines the importance of Shariah Compliance for Islamic Financial Institutions (IFI) in Pakistan along with the process followed to ensure it. Islamic Banking was initiated in Pakistan in early 2000s and by now a proper network exists with a market share of 13.6 % of Assets and 14.7% of deposits with a network of 21 Islamic Banking ins...
Citations
... Due to their uniqueness and ethical consideration, Islamic banking and finance have expanded significantly both in Muslim nations and non-muslim nation (Shah et al., 2023) and now is regarded as a serious competitor to "traditional finance". In particular, Islamic banking has developed and created an alternative model of financial intermediation, integrity, and credibility, as evidenced by the establishment of a significant number of Islamic financial institutions around the world (Karim et al. 2010). ...
This study intended to examine the effect of Islamic financing modes on profitability of banking institutions in
Mogadishu Somalia. In detail, the study examined the effects of Murabaha (cost-plus) and of Mudarabah (profit
sharing) on profitability of banking institutions in Mogadishu Somalia. The study used a correlational research
design, and data were collected through self-administered questionnaire from 56 respondents. The results
indicated that Murabaha and Mudarabah have a statistically significant positive effect on profitability of banking
institutions. The findings reveal that a significant increase and adherence to these Islamic modes of financing is
expected to significantly improve and increase the profitability of banking institutions. The study concludes that
both Murabaha and Mudarabah are vital for Islamic bank performance and profitability. It is recommended to the
management of Islamic banks to start putting into consideration clients’ credit rating while determining the
mark-up value and at the same time carry out regular and systematic visits to their partners to gain an insight into
the operations of the joint venture businesses and also remind them to clear their obligations
... The debit cards initiate an electronic funds transfer procedure that speeds up customers' purchasing payments instead of managing cash and checks, saving the customers' time by removing the need to visit the bank halls (Murugun, 2023). Extant literature posits that even outside of regular business hours, debit cards may be used, which boosts bank efficiency (Shah et al., 2023). As they are handy, simple, and easy to carry, credit cards have been found to be user-friendly (Singh, 2023). ...
... Besides, smart cards promote users' efficiency and flexibility without requiring them to visit the bank premises (Lee, & Pan, 2023). Credit cards have been embraced by banks to enhance income, profit, and decrease credit and liquidity concerns (Shah et al., 2023). Debit cards and credit cards are inexpensive for both banks and clients (Singh, 2023). ...
