Malaysian Banks Term Paper Example | Topics and Well Written Essays - 500 words

Malaysian Banks - Term Paper ExampleOne of the most premier cases where it is not sharia compliant that it most incur qualifying and gains in the house or concern regardless of circumstances. A notable case was noted when an individual went to the Bank and said he cannot pay, solely the buzzword refused to cheat his house. This is completely against shariah in which the bank must split the loss. Hence, the concept of shariah finance is extremely hard because each country wants some revenue when it comes to financial securities. For the sake of assurance, most banks sugarcoat this with hidden fees and even charge a higher interest rate that are commonly hidden in original clause terms. The concept of service fee is highly demised because it is a subdued term that all Malaysian banks utilized.Before sagacity this issue, it is cognizant to understand the elements that surround Islamic Banking. Without a doubt, the Islamic law dictates that the asset must not be a ribawi materi al or in the medium exchange of gold, not silver. Additionally, a contract between two or more parties to forgather in partnership. HSBC Malaysian bank also is one of these banks that is not shariah approved because of this issue.Another bank that is not confirm with the shariah standards is the fact Citibank Malaysia. Citibank Malaysia also offers these instruments along with the JP Morgan Malaysia Ltd. These banks financial statements dictate that these credit statements must be approved the counsel that is Shariah Compliant. Schroders Malaysiais also under the same scrutiny as they sell bonds and other financial instruments that charge an interest rate and are not compatible with equal loss or gain since all payments for purchases are made in money. It is clear that not all banks withdraw the understanding to conduct shariah and even do have an approval, tend to look for their own understanding of financial security. Additionally, the banks make it very clear in clause and term s that