Islamic banking emerges as the leading ideology of the modern Banking system and the simple enough answer to that is the authentic, reliable and fair system it holds for its audience. Islamic banking is practiced all around the world even in banks that are situated in non-Muslim countries.
If strictly speaking in the Pakistani context, banking has been captured in the image of an interest-based financial system. Islamic banking removed that image and threw light on all major and minor aspects of banking through the teachings of Islam and our Holy Prophet (S.A.W.W). This article briefly sheds light on the impact of Islam on the banking system in Pakistan and all around the world.
Initially practiced by only a couple of banks back in 2001, now banks that can be categorized as the pride of Pakistan such as HBL, UBL and MCB along with many others emerging everyday are putting into practice the Islamic finance and banking methods.
Al Huda CIBE (Center of Islamic Banking and Economics) is the largest Islamic banking promotional group in Pakistan and is spreading its large wing globally as well. Al Huda CIBE is remarkably changing the banking organization in Pakistan on a daily basis. How? Let’s see how:
Al Huda CIBE is known for its wide expense promotions on Islamic banking through Event organizations and training on the topic. Most notable innovation or step towards the betterment of the financial system of the country is the Annual Islamic Banking Conference held in Lahore, Pakistan every year. It has revolutionarily affected the application of Islamic Rule of Law in the Banking sector of Pakistan.
Al Huda’s latest success has been the International Conference on Microfinance held a few weeks earlier on 13th June and resulted in many changed policies relating the granting system of microfinance to the needy people.
Al Huda CIBE also organizes workshops and training programs for banks, companies and students finding the guiding light towards the Islamic system in Banking.
The most recent event that took place on a national and International level was the 2010’s grand exhibition and promotional conference on Islamic Banking and Finance held at the Expo Center, Lahore. The daylong event had guests from banks all around the world communicating their word on the practice of Islamic banking in their respective fields.
The leading voices conveyed the message that Islamic Finance has entered not only the Banking Sector but also:
Leasing and Easy Loans Market
Educations and Advisory
Musharakah (Joint Venture)
Mudarabah (Profit Sharing)
Hibah (Gifting System)
Qard Hassan (Loans and Credits)
Sukuk (Islamic Bonds)
Takaful (most notably Islamic Insurance)
Wakalah (Attorney System)
Looking above at the progress that is taking place, Islamic Banking is surfacing at the right place on the right time.
We see a multi-billion dollar industry that is growing day-by-day and minute-by-minute from the start of the decade till today and in continuation that is changing the banking system of Pakistan and that of this world’s efficiently and effectively.