What is the difference between Shariáh compliant banking and conventional banking?
The main difference between Shariáh compliant banking and conventional banking is that Islamic teachings says that money in itself has no intrinsic (fundamental) value and forbids people from profiting by lending it, without accepting a level of risk – in other words, interest (known as "Riba") cannot be charged on money.
To generate money out of money is prohibited- wealth can only be generated through legitimate trade and investment. Any gain/profit related to this trade/investment is shared between the person providing the capital and the person providing the expertise (Mudaraba). At Maldives Islamic Bank, we generate all our profits through Shariah compliant trading and investment activities. We then share the profits with our customers at a pre-agreed ratio. In order to share profits you must hold one of our savings or investment accounts.
What is Islamic Banking?
Islamic banking is a system of conducting trade and banking activities in line with the principles of Islamic Shariáh while avoiding all the prohibited activities such as interest or Riba, Gharar (uncertainty), financing of haram trade and ...
What are the sources of Islamic Shariáh?
Islamic Shariáh or the divine law of Islam is derived mainly from the following two primary sources: The Holy Quran The Sunnah of the Holy Prophet (Peace Be Upon Him) And in the absence of absolute proofs from the above primary sources, Shariáh ...
Does MIB open in holidays if so what services are provided ?
MIB is only open on Banking Days. Sometimes during a long holiday period all the local banks will open on a particular day as coordinated by the central bank. Such days would be priorly advertised. Services provided on such days would normally ...