Islamic Finance Software: Mudarabah Monitoring and Management iOS Application - Research Proposal Example

[Name of the Writer] [Name of the Professor] [Name of the Course] [Date] mudarabah in Islamic Banking The financial System in Islam is governed by the principles governing financial matters that are quoted in the religion of Islam.... One of these is termed as mudarabah.... The series of processes in this form of mudarabah, where the bank acts as a manager may be described in the steps below: Customers place deposits in the bank by undertaking an agreement of the Mudharabah....

The underlying principles of islamic finance such as the creation of an asset, avoidance of uncertainty and speculation, and prohibition of riba, etc.... Estimates suggest that since 1990, the market size of the islamic finance has multiplied five times from USD 150 billion to USD 900 billion in the year 2008; whereas it is expected to more than double at USD 2 trillion by the year 2010.... The main markets currently involved in the islamic finance and banking across the globe comprises mainly the active participation from the GCC countries, followed by Middle Eastern and North African countries....

Islamic merchants became the brokers of trade related activities in Spanish and Mediterranean regions, which helped in promoting islamic finance amid European financiers and capitalists.... In the modern day context, islamic finance has made a huge impact in various parts of the world, as it has been promptly growing in the financial sector.... islamic finance is not just limited to Islamic nations, but it has spread to other nations wherein the Muslim community is quite large....

The capital provider is referred to as rabbul mal, where as the entrepreneur is called mudarib.... Under the terms of Mudaraba, the capital provided by Rabbul mal, is managed by the mudarib.... ... ... Therefore, any profit that is generated from this business association is shared between the two parties....

versight by board and management: IIFS is expected to possess a comprehensive risk management process which includes the senior management oversight for controlling the different types of credit risks.... Credit risk weighting for the islamic finance institution can be explained as 400% risk weighted is applied in case of all commercial and private enterprises and 300% of risk weighted funds on Mudarabah basis for withdrawal by the investor during the short notice period....

This paper 'The Viability of Islamic Banking' examined the present status of development of islamic finance and banking, in particular, evaluating its risk management capabilities, its consistency with international accounting and auditing standards.... The author states that the development of islamic banking originally took off as a means to fulfill the specialized needs of the Muslim community.... Early in the seventies, the first major islamic banks were established, although their main aim was largely communal, that is, to provide products and services....

Islamic banking has not been undervalued and considered as a short-term phenomenon; rather, its considerable development implies its long-term application and progress as an extremely fast-growing industry.... 0) stated that Islamic banks in operation have failed to devise a mechanism that could finance government debts and consumer loans without interest.... This paper "Is islamic Banking in the United Kingdom Really islamic?...

These banks were established by shareholders or governments under laws such as mudarabah, Murabahah and Musharakah which enabled people to borrow while capital was raised.... The paper "Islamic Banking & finance" is a great example of a finance and accounting literature review.... The paper "Islamic Banking & finance" is a great example of a finance and accounting literature review.... The paper "Islamic Banking & finance" is a great example of a finance and accounting literature review....