Introduction to Islamic Banking

The most distinguishing feature of the Islamic economic system is the prohibition of interest. Islamic economic principles have prominently been applied in financial industry especially in banking. Islamic Finance is growing in multiple dimensions and is now spreading in other financial sectors like insurance, structured finance, project finance, mutual funds, syndicated finance, investment banking etc. On the geographical level too, Islamic banking has grown from Middle East to Europe and now is well positioned in South Asian markets as well.

Shariah compliance also ensures Corporate Social Responsibility (CSR) and ethical compliance. Islamic banks do not conduct business with companies producing tobacco, alcohol or engaged in business of gambling, casino, nightclubs, prostitution etc. This mechanism has given Islamic banking the name of 'ethical banking' in Europe.

The balance sheet of Islamic banks is capable of taking financial shocks. Islamic banks are not obliged to give fixed return to their depositors and general creditors. The creditors, shareholders and depositors share and participate in the bank's business. Therefore, if incase, there is a shock on asset side (NPL increasing), Islamic banks will be able to share this loss with their depositors and shareholders.

Long Term Investment Ideas

Stocks, bonds, futures, ETFs, currencies are some of the options that are highlights of Investment News. Analysts on web go beyond these headline hunting investment opportunities to present the investors with the dispassionate analysis of hidden terms and conditions that may affect the investor in the long term. Investment news provides the briefs of changes in the company managements, fresh loans taken by a company, and the economic policies that affect the listed companies.

Latest Finance News appearing on the web, television, radio and the late night editions of newspapers give the investors a 24 hour perspective of happenings in the different sectors of the world economy. In the interconnected world, the information spread affects the companies in various ways.

For example: A wage strike at G.M's factory in China may appear as an inconsequential development to an American reader. However, when the active blogs on social media began to focus on discriminatory business practices of G.M in China, the news was picked up by Latest Finance News and the stock was hammered on the global bourses.