Islam is not only a religion in the usual sense of the word, but also an all-encompassing system of life values. While other religions give teachings only in the relationship between a person and his Creator, Islam is a guide for a person in his relationship with God and gives him the norms that govern his temporary existence, since Islam is associated with spiritual, political, socio-economic, moral and all other material aspects of human life.
Islamic Banking is a banking activity that is consistent with the principles of Islamic law (Sharia), and its practical application is carried out through the development of the Islamic economy. Sharia law prohibits fixed or floating interest payments or fees (known as Riba, or usury) on borrowing money. Investing in a business related to the provision of goods or services is considered contrary to the principles of Islamic Haraam (prohibited). Although these principles were used as the basis for a thriving economy in earlier times, a number of formal Islamic banks were established in the late 20th century that applied these principles to private or semi-private commercial institutions in Muslim and non-Muslim communities. You will be able to know the course details of Islamic Banking from Widad college with Islamic Banking course.
The main reasons for this growth are:
- Muslims around the world are starting to use Sharia-compliant [financial] products that were previously unavailable to them;
- Due to the increasing oil wealth of Muslim countries in the Middle East and their decision to use Sharia-compliant products, Western governments and conventional financial institutions are considering using Islamic finance;
- Due to increased competition and emphasis on ethics, Islamic products attract not only Muslims but also non-Muslims;
• Islamic finance will continue to evolve as Islam is the fastest growing religion in the world and Islamic religious groups are second in the UK, USA and France.
The Need for Islamic Banking and Financial Education and Training
Islamic banking faces an increasing Human Resources challenge when opening Islamic banks. It is carefully estimated that 50,000 Islamic finance professionals are required in the Islamic finance industry. The need for human resources is indeed increasing, but their growth does not correspond to the needs of the opening Islamic banks. It is a fact that a person cannot become an Islamic banker simply by studying a few books or taking one week of training, he must have many other traits. To become an Islamic banker, you need to spend at least part of your life in Islamic countries and gain experience. There is not enough qualified specialists in the field of Islamic banking and finance and regular employees in Islamic banks must be also replaced in this way, that the Islamic Bank is governed according to Islamic principles. The right people is needed and it will take time to solve this problem, and human capital can be prepared according to demand. Education will truly raise the standard in Islamic finance.