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Islamic Banking- Commonly Used Terms

Posted in Malaysia Personal Finance |

I have to start believing that Malaysia is really pushing herself to become an influential Islamic financial hub in the region when I saw my brother’s passbook. The passbook classifies his savings account as Al-Wadiah. He did not opted for an Al-Wadiah account, but I guess this is one way the banks decided to “educate” their customers.

Needless to say, my brother is no Muslim. Contrary to popular myths and beliefs, you don’t really need to be a Muslim to utilize the Islamic banking’s financial services. It’s just a concept, and that’s it.

However, the way that our banking institutions go about their marketing, it’s no doubt the word Islamic itself conjures the images that one must be a Muslim-related entity to use the Islamic banking services.
Maybe it’s also part of these financial institutions’ age-old practice to ensure that the public is not “too educated”. I hope I am wrong on this one.

Well, to avoid further complications and confusions, I have provided an easy to refer table of commonly used Islamic financial terms. This is not a comprehensive list though.

So, don’t freak out when you are handed your new passbook that says Al-Wadiah.

Islamic Banking Terms




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  • junn_yun

    there is something that i dont undrestand about islam world. since riba is interest, the mere differences is just a name? y can’t they just call it interest to save the comsumer time and hassle to figure out what is it?
    if you’re interest to know is malaysia slowly “islamize” check out this site http://teresakok.blogsome.com/2006/06/02/open-letter-to-pm-by-jacqueline-ann-surin/#comments

  • http://www.meshio.com yowchuan

    Maybe for the same reason why “Yong Tau Foo” is not just called “Steamed Beancurds” or for the same reason “Murtabak” is not just called “Piece of Cooked Flour Stuffed with Meat”.

    Islamic Banking is just an alternative concept for banking, and thus it is only prudent that they used Arabic terms to maintain consistency throughout the Islamic banking industry.

    In fact, I don’t see any harm it would cause consumers to learn a few more words outside their daily vocabulary but as I’ve mentioned earlier in my post, the Islamic banking sector is not doing a very good job in educating the public.

    Well, not everything has to be seen from the political point of view, though it sure does make it more debatable.

  • http://twitter.com/hiamato Ibrahim Farouk

    In the name of God the Merciful Praise be to God and prayer and peace upon the Messenger of God

    Dear Respected Manager

    First of all : we are wishing you good days and happy life

    subject / establishment and structuring of Islamic banking TV channel

    It is not obvious to someone of the Islamic economy and its institutions and its banks of great importance not appreciated only from known and realized how the usury of the most reasons of last monetarily crisis and Islamic Banking institutions are of high stability against this crisis

    And as it is clear to everyone the importance of media to change the thinking of the masses and make them aware of Islamic economy and its institutions

    Dear,

    We are a company specialized in the field of establishing and structuring satellite channels .. And we are looking forward to see “distinct channel between channels” educate Muslims on Islamic Economics and also promotes the economic institutions of the Islamic banks.

    On the other hand we have the accumulated experience in the establishment and structuring of Islamic channels that are granted absolute confidence in the establishment of channels that reflect our vision which is “the highest quality in the fastest time at minimum cost”

    The future of Islamic banking TV channel :

    - To highlight the personalities and individual contributors in the service of Islamic banking .
    - The best way to promote the Islamic banks and institutions
    - Set a precedent of its kind in the banking field .. Traditional banks do not have the channel, but only just the announce about its activities.
    - Remove impurities and the suspicions raised about the Islamic banks
    - Tribune news for banks and Islamic institutions to promote themselves and their Shariah compliant – products
    - training in the field of Islamic banks by the channel and website
    - Access to exclusive contracts for conferences and seminars on Islamic banks
    - Turn the channel, shortly to the first reference to obtain information about the Islamic banks
    - Unification of opinion about the products and services of Islamic banks
    - Formation of a public opinion and global issues of Islamic economics in its various aspects.
    - To highlight the competitive advantages of Islamic banks over the banks of conventional

    this is an opening message, and we are looking forward to listen from you ASAP

    And waiting for your response and questions

    Islamic Banking Tv

    http://www.IslamicBankingTV.com