Browsing by Subject Amanah: Trust, with associated meanings of responsibility, truthfulness and sincerity. As an important secondary meaning, the term also identifies a contract where one party keeps another‟s funds. This is in fact the most widely understood and used application of the term, and has a long history of use in Islamic commercial law. Now a days HSBC has maintained Amanah bank accounts. FFIB: Full fledged Islamic banks Ijara: Ijara is a kind of lease; it allows the bank to earn profits by charging rentals on the assets leased to the customer. Ijara wa Iqtinah extends the concept to a hire purchase agreement. Murabaha: Purchase and resale. Instead of lending out money, the capital provider purchases the desire commodity from a third party and resells it at a prearranged higher price to the capital user. By paying this higher price over installments, the capital user has successfully obtained credit without paying interest. Musharaka: profit and loss sharing. It is a partnership where profits are shared as per as agreed ratio whereas the losses are shared in proportion to the investment of each partner. Quran: The Holy book of Muslims revealed on prophet Muhammad. Riba: Interest, Usury. The legal concept extends beyond just interest but in simple terms Riba covers any return of money on money-whether the interest is fixed or floating, simple or compounded, and at whatever the rate. Riba is strictly prohibited in Islam. xi Sha’riah: Islamic law as revealed in the Quran and through the example of Prophet Muhammad. A Shariah compliant product meets the requirements of Islamic law. A Shariah board is the committee of Islamic scholars available to an Islamic financial institution for guidance and supervision in the development of shariah compliant products. Shariah advisor: An independent professional, usually a classically trained Islamic legalscholar that advises an Islamic bank on the compliance of its products and services with the sha‟riah, or Islamic law. While some Islamic banks consult individual Sha‟riah advisor, most establish a committee of Shariah advisors. Sha’riah Compliant: An act or activity that complies with the requirements of sha‟riah or Islamic law. Takaful: Islamic insurance. Planned as charitable collective pool of funds based on the idea of mutual assistance, takaful schemes are designed to avoid the elements of traditional insurance (i.e., interest and gambling) that are challenging for Muslims.
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