Explains the various islamic banking contracts

Assignment Help Accounting Basics

Reference no: EM131989097 , Length: word count:1500

ASSIGNMENT - ISLAMIC BANKING AND ACCOUTING

Scenario or Tasks - Islamic Banking is a relatively new phenomenon in the financial services industry in Oman. Islamic Banking Regulatory Framework (IBRF) was issued by the Central Bank of Oman (CBO) at the end of financial year 2012 which is enforced by the a Royal Decree. IBRF permits three types of Islamic Banking Entities collectively called IBEs.

Full Fledged Islamic Banks
Islamic Banking Windows by Domestic Conventional Banks
Islamic Banking Branches by Foreign Banks

At present, two full-fledged Islamic Banks and six Islamic Banking Windows (IBWs) are licensed to operate by the CBO.

Full-fledged Islamic Banks

1) Bank Nizwa

2) Alizz Islamic Bank

Islamic Banking Windows of domestic conventional Banks

Name of Conventional Bank	Islamic Banking Window
1) Bank Muscat	Meethaq
2) Bank Sohar	Sohar Islamic
3) Ahli Bank	Al Hilal
4) Bank Dhofar	Maisarah
5) Oman Arab Bank	Al Yusr
6) National Bank of Oman	Muzn

Due to the religious inclination of the people, Islamic Banking products and services are gaining market share at a pace faster than anticipated. As per the recent figures, the shares of Islamic Banking in total banking assets has reached to approximately 12% which is considered huge achievement by the industry experts in only five years' time span.

IBEs are offering competitive products and services to attract and enhance their customer base. Oman has adopted a more stringent and conservation Islamic Banking approach and does not allow "Commodity Murabaha" as a financing tool. Currently, during the initial phase, IBEs are offering vanilla products including but not limited to the following:

Financing Products

Auto Finance (based on Murabaha and Ijarah contracts)
Home Finance (based on Diminishing Musharaka and Ijarah contracts)
Personal Finance (based on Murabaha and Services Ijarah)
Term Finance i.e. for corporate customers (based on Murabaha, Ijarah, Diminishing Musharaka and Wakala contracts)

Deposits Products

Current Accounts (based on Qarz)
Saving Accounts (based on Mudaraba contracts)
Time Deposits (based on Mudaraba and Wakala contracts)

Requirements - Select two Islamic Banks and two Islamic Banking Windows of the Conventional Banks and analyze three products from each entity (two financing and one Deposit product).

Prepare a report of 1500-1700 words which:

1. Explains the various Islamic banking contracts.

2. Analyses the products selected from the Banks Windows based on the contracts. Compare the similarities and differences.

3. Provide your observations how these products are different from conventional banking products.

The report should be structured with appropriate references and begin with an introduction and end with a conclusion.

Reference no: EM131989097

Questions Cloud

Demonstration of competence and skills : While reading about the various leadership era's and theories, I kept asking myself what kind of leadership era or theory do I fall under?

How leaders need to be thinking and acting in new ways : Conduct a search for exercises or methods that will encourage you to start thinking differently, as suggested in the Gladwin video and in your readings.

Compare and contrast these explanations of fdi : Compare and contrast these explanations of FDI: internalization theory and Knickerbocker's theory of FDI.

Summarize the actions you took on your learning project : Summarize the actions you took on your learning project and the progress you made on achieving your development goal.

Explains the various islamic banking contracts : Prepare a report of 1500-1700 words which: Explains the various Islamic banking contracts. Analyses the products selected from the Banks Windows

By how much would companys gross margin increase or decrease : This product is normally sold for $48 per unit. By how much would the company's gross margin increase or decrease under absorption costing?

What are the nine basic components of a mission statement : Why is it important to include as many of these components as possible in a company's mission statement ?

One-page description of selected topic : ITNE 2002 - one-page description of which topic choose one from following list provided below you want to report and present

The single most important force driving globalization : How important would you characterize globalization for developing business professionals? Take a position and provide evidence.

User Account

All Pages