HDalhaaawi

Different Sources of Fund of Islamic Banks. Similar to conventional banks, Islamic banks also need funds to operate its banking activities. Basically there are two (2) main sources of funds, namely ·          Shareholders’ working capital and ·          Deposits collected from Customers. For a dual window banking operation, all funds belonging to the Islamic banking scheme are segregated from those related to conventional banking. In addition, to avoid co-mingling of the funds, separate accounting books are maintained by the Islamic The original source of the Islamic funds has to be ascertained to ensure it come from a “halal’ sources. Under a dual window banking operation, the initial paid-up capital is normally given on al-Qard basis (benevolent loan which is free of interest) from the conventional counterpart thus there should not be any issue in regards to the source of the funds. ...

Functions of Foreign Exchange Market Meaning: Foreign exchange market is the market in which foreign currencies are bought and sold. The buyers and sellers include individuals, firms, foreign exchange brokers, commercial banks and the central bank. Like any other market, foreign exchange market is a system, not a place. The transactions in this market are not confined to only one or few foreign currencies. In fact, there are a large number of foreign currencies which are traded, converted and exchanged in the foreign exchange market. Functions of Foreign Exchange Market: Foreign exchange market performs the following three functions: 1. Transfer Function: The basic function of the foreign exchange market is to facilitate the conversion of one currency into another, i.e., to accomplish transfers of purchasing power between two countries. This transfer of purchasing power is effected through a variety of credit instruments, such as telegraphic transfers, bank draft and fore...

SOMALILAND: ISLAMIC BANKING CAN SUSTAIN SOMALILAND’S DEVELOPMENT Somaliland's President has signed the Central Banking Act into law. Back in 2012 the financial sector agreed to have a Dual Banking system where both Conventional and Islamic banking systems operate in the country. However, the Commercial Banking Act is more than four years overdue. Economically, Somaliland's long-term competitiveness can only be ensured by introducing the Dual Banking System in the country. The country lacks financial regulatory and over sight, which is necessary for Sustainable Development projects. The Central Bank is very weak in terms of spearheading the fiscal and monetary policies. Case in point is the recent much debated inflation rates. Unfortunately, due to the legal and sovereignty of the country, there are no conventional banks, but Dahabshil International Bank is at the forefront of introducing Islamic Banking and Finance. Salama Bank is another competitor in the financial...