Islamic Financing Vs Conventional
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Title: Islamic Financing Vs Conventional

Essay Details:

Subject: Miscellaneous
Author: Garnet B
Date: July 18, 2015
Level: University
Grade: A
Length: 6 / 1617

Essay text:

These considerations are vital to ensure the sustainability of the system not only as a form of financial intermediation in the domestic economy but also as an integral component of the international financial system. 1 However the features of Islamic banks and their intermediation models that they follow eg the Profit and Loss Sharing (PLS) method and the Non Profit and Loss Sharing(NPLS) method involves special risks that have to be recognized to assist in making risk management in Islamic banking more effective. The Profit and Loss Sharing method: This method of financing is very much different from the conventional as it uses the concept of profit and sharing for example when a corporate wants us to finance their project the bank uses the concept of Mudaraba where the bank act as investor and the corporate as the entrepreneur ...

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