Suppose you have experienced two types of banks one being Islamic and the other one as...

Suppose you have experienced two types of banks one being Islamic and the other one as conventional. Based on this;
(a) What key differences and major issues of both types would share with your friend?
(b) What main reasons would you emphasize in order to help your friend to either choose Islamic or conventional bank?

Expert Solution

(a)

Difference	Islamic Bank	Conventional Bank
Objective	The objective of islamic bank is to work as a trading concern	The objective of conventional bank is to generate income as financial intermediary
Risk sharing	Risk is shared among borrower,lender and bank	Risk is fully shared to others
Relationship	The relationship between islamic bank and customer is one of participation in risks and rewards	The relationship between the bank and customer is that of debtors and creditors.
Business framework	Based on shariah laws and ensure islamic laws are adhered with proper guidance of sharia scholars	Secular banking laws and not based on religous laws or guidelines
Profit	Maximizing profit but subject to shariah laws.	Maximizing profit with out any restriction
Sharing of loss	Loss is shared when the organisation suffers loss	There is no concept of sharing loss

(b)In my personal opinion i would suggest you to choose Islamic bank over conventional bank because they are showing better performance and also follow the principle of financial justice and encourages stability in investments and accelerating the development and also losses are shared.

Rahul Sunny answered 9 months ago

1. Select two banks(one conventional bank and one Islamic bank in UAE) and do the following:...

1. Select two banks(one conventional bank and one Islamic bank in UAE) and do the following: A: Find out as much as possible from the bank • History of each bank • Types of the accounts opened by the bank • Types of customers of the bank • Analysis of the financial statements of the bank • Performance analysis of the bank(rations and trends) B: Customer survey about the awareness and perception of Islamic banks.

Suppose that one of the largest commercial banks in your country has recently experienced a significant...

Suppose that one of the largest commercial banks in your country has recently experienced a significant distress which led to the bank being put under special management by the central bank. As the newly appointed caretaker CEO of the distressed commercial bank, you are required to present a turnaround management strategy for the bank to the senior management of the central bank. Carefully articulate your turnaround management strategies that would return the bank to a sustainable profitable path. The proposed...

Emerald Bank Limited (EBL) is one of the established Islamic banks in Malaysia. In early this...

Emerald Bank Limited (EBL) is one of the established Islamic banks in Malaysia. In early this year, EBL has been awarded “The Best Performance Institution in Shari’ah- Compliant” and “The Top Customer Service Bank”. Its employees are well-trained, not only in Shari’ah and operational aspects, but also in business ethics and customer service. Other than registering excellence performance in its core banking business activities, EBL is also well-known with its involvement in corporate social responsibility (CSR) activities. a) Brands vary...

You have two coins, one of which you know to be fair and the other of...

You have two coins, one of which you know to be fair and the other of which has a probability of turning up heads of 0.7, but you can’t tell which one is which. You choose one coin at random and flip it ten times getting an equal number of heads and tails. What is the probability that you chose the unfair coin?

In the Job Market Signaling, suppose there are two types of workers where one type is more productive than the other.

In the Job Market Signaling, suppose there are two types of workers where one type is more productive than the other. Assume the signal is education and that the intangible cost of the required signal amount of education is $1.75 for the less productive worker. Assume further that the more productive worker experiences a cost rate that is 60% lower than the less productive worker. If a firm offers a two-part wage scheme where workers with the signal amount of...

What types of changes have financial markets experienced during the last two decades? Have they been...

What types of changes have financial markets experienced during the last two decades? Have they been perceived as positive or negative changes? Explain.

Imagine you have two solutions, one that is 0.113 M in HCl and the other that...

Imagine you have two solutions, one that is 0.113 M in HCl and the other that is 0.085 M in Sr(OH)2. If you add 37.4 mL of the HCl solution to 31.8 mL of the Sr(OH)2 solution, which is the limiting reactant? How many grams of SrCl2 will be formed? How many moles of the excess reagent remain in solution?

You have two balloons. One is filled with 50.0 grams of helium and the other is...

You have two balloons. One is filled with 50.0 grams of helium and the other is filled with 50.0 grams of nitrogen . Which balloon has more particles present?

Give detailed examples of these three types of learning that you have experienced in your life:...

Give detailed examples of these three types of learning that you have experienced in your life: 1. Classical Conditioning 2. Operant Conditioning 3. Observational Learning In each example, describe how you acquired the particular behavior in question and how you would use each type of learning paradigm to modify that behavior. Separate your discussion in a way that clearly shows which type of conditioning you are writing about.

Suppose you have a pair of tetrahedra. One is red on one face, yellow on two...

Suppose you have a pair of tetrahedra. One is red on one face, yellow on two faces, and green on one face. The other is white and has faces marked 1, 2, 3 ,4 a. Complete the table 1 2 3 4 Red Yellow Yellow Green b. If both tetrahedra are tossed, what is the probability of a red (facing down) and a 3 (facing down)? Of a yellow (facing down) and a number >1 on the other (facing down?)...

Question