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A17A0026

Based on the video “how islamic banking works”, it explains the comparison between islamic finance and conventional finance. From my understanding conventional bank will charge high interest rate to their customer who apply loans and bank also compound to the customer who cannot make a payment in the time that the bank give. As we know, conventional bank gets a profit from the high interest rate that the bank charge to the customers. However, in Islamic banking they only invest in the actual assets and services such as buy machinery, lease out cars. This is because assets and services cannot be compounded. Besides, Islamic banks only allow one buyer and one seller in transaction. Other than that, islamic bank only buying and selling something real while conventional bank involve in borrowing and lending something fleeting. In this video, we can conclude that islamic bank is the better bank to choice for make transaction compared to conventional bank.

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NUR AIN ATHIRAH BINTI AZIZ A18B0520
Based on this video, I can understand about the comparison between the Islamic Finance and Conventional Finance. whereas the Conventional bank will impose the interest for the customers when they makes loan, Conventional Bank also will impose the compound if the customers makes late payment on the loan. However, in Islamic Bank they will invest in actual asset and services such as on the machinery, house and others. As we all know Islamic bank will do their own business before they provide financing to the customers. If the Conventional Bank, they will provide loan which means borrow and lend something flitting. Furthermore, Conventional Finance allows sells money and also sells the assets before it exist, allows debt to grow uncheck and create artificial supply which can causes the high inflations and others issues, in Islamic finance it has been prohibited unless for certain contact such as the ijarah.

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SHAHEERA BINTI A.RASHID
(A17B0641)

Based in the video ‘How Islamic Finance Work’, i understand that have different between islamic finance and conventional finance. The main difference between Islamic and conventional finance is the treatment of risk, and how risk is shared. In this step we examine what these differences can teach us about risk and risk management in conventional banking and financial markets. The two main forms of Islamic finance are bank finance and issuing Islamic securities (called sukuk).In conventional terminology you might think of these as debt  bank loans and bond issues respectively, but that is inaccurate. Those categories cannot be applied to pure Islamic finance. In Islamic finance interest is prohibited. If an enterprise is financed by debt with an obligation to pay interest, the risk of the business is not being shared fairly. Instead, Islamic finance requires that finance is provided on the principle of profit and loss sharing. Under shariah law finance can be provided through several types of contract. Each type specifies how risk is shared between the enterprise and the supplier of finance. One such contract is a mudarabah. This specifies in advance how profits and losses are to be shared between the financier and the entrepreneur. Profits are shared in a predetermined ratio, so the financier’s return fluctuates according to business profitability. Losses, except those caused by the entrepreneur’s fraud or negligence, are to be borne entirely by the financier. Contrast that with a conventional loan where the financier has a contractual right to receive interest (and capital repayment) irrespective of the condition of the borrowers’ business.

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Rishvina A/P Thanarajoo
A17B1009

Based on the video, they are discussing about conventional and Islamic bank.

First, a conventional bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit. It can also refer to a bank, or a division of a large bank, which deals with corporations or large/middle-sized business to differentiate it from a retail bank and an investment bank.

Second, islamic bank is bank where the activity that complies with sharia (Islamic law) and its practical application through the development of islamic economics. Some of the modes of Islamic bank include mudarabah (profit-sharing and loss-bearing), Wadiah(safekeeping), Musharaka (joint venture), murabahah (cost-plus), and Ijara (leasing). Sharia prohibits riba, or usury defined as interest paid on all loans of money (although some Muslims dispute whether there is a consensus that interest is equivalent to riba). Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also haram ("sinful and prohibited").

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Nur Solehah Binti Yusof (A17A0496)

What the understanding that I watch from the video is the difference about Islamic and Conventional frameworks. Conventional banks find a credit worthy customer and lends them with interest. It is because the bank is not particularly corcerned about what happens to the money as long it gets repaid. In Islamic bank, its only invest in actual assets and services as example buy machinery, lease out cars and interest in business. The transaction is always tied to a real assets or services. Besides, the conventional finance sells money when no money to sell assets before there are underlying assets and to allow debts to grow unchecked while borrowers become more desperate. Interest creates an artificial money supply that is not backed by real assets. It will increase the inflation, heightened volatility and economic disparity. While, in Islamic finance, there are free-interest.

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FATINI BALQIS AS-SAKINA BINTI NOR ‘AZLAN A17A0107

Based on the video "How Islamic Banking Works", it explains the comparison between Islamic Finance and Conventional Finance. What I understand by watching the video, conventional bank will impose high interest rate to their customer that apply loans from the bank. Basically, we acknowledged that conventional bank gets profit from interest rate charge to their customer. However, for Islamic Finance system, they basically gain profit by markup the price. Beside that, Islamic Banking buy the property first then markup as they collect the profit from that, then the will sells something that already “real”. Compare to Conventional Finance that selling and borrowing something that still “flitting”.

The most important factors that can be compare is Islamic Finance are following shariah regulations. Sharia prohibits riba, or usury, defined as interest paid on all loans of money (although some Muslims dispute whether there is a consensus that interest is equivalent to riba). Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also haraam (sinful). According to the principles of Shari'ah the bank is not allowed to enter into or any act that involves (give and take of) interest. The prohibition on paying or receiving fixed interest is based on the Islamic tenet that money is only a medium of exchange; it has no value in itself, and therefore should not be allowed to give rise to more money, via fixed interest payments, simply by being put in a bank or by lending to someone else.

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Based on the video above, it show the different between Islamic finance and conventional finance. The main of difference is interest. In Conventional Financing, lenders lend to borrowers to make a profit from the interest charged on the principal amount. For property loans, borrowers pay an interest on the outstanding principal amount. Interest  rates can be a fixed rate or based on a floating rate. Payment is made over a set tenure by installments. A portion of each installment paid goes towards servicing the interest, while the remainder goes towards paying down the principal. Since the contract is not based on an absolute value , the sooner the borrower can pay down the principal, the cheaper the amount of interest paid.

Islamic Financing avoids interest-based transactions (riba), and instead introduces the concept of buying something on the borrower’s behalf, and selling it back to the borrower at profit. In place of interest, a profit rate is defined in the contract. Like Conventional Financing, profit rates can be a fixed rate, or based on a floating rate . The majority of Islamic home financing options in Malaysia today are based on the Bai Bithamin Ajil concept. A small number of alternatives are based on the Musyarakah Mutanaqisah  concept.

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The video given show about "how islamic bank and finance works". Its refer how to make the flows with the interest that charge by bank. From islam banking the interest they charge based on the price that included with the original.  For an example,  purchases house must refer to the bank.  We call the buyer as bankers to be a main person buy the house. With my property include at the bank or cash on the hand, islamic banking works with the funds that collect from every customer. Its works to help the poor person and make him to be happy.

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From this video “how Islamic banking works”, I can conclude that about comparison between Islamic finance and conventional finance. Firstly, the real word comparison. In Islamic finance only invest in actual assets and service. Such as buy machinery, lease out car and invest in business. Secondly, in Islamic finance buy and selling something in real while conventional finance borrow and lending something flitting. Thirdly, in Islamic finance have interest free different to conventional. It is can describe from 3 real world example such as Obasenjo, ex-president from Nigeria, Nick, home buyer from UK, Faisal, colleague student from USA.

Besides that, the other different is conventional finance sells money when no money ,sells asset before they exist, allows debt to grow unchecked, interest creates artificial supply the result make by real assets such as increase inflation, heightened volatility and economic disparity.

For my opinion about interest rate it is amount that bank charge for the use of assets. The assets borrowed could include cash, consumer goods, or large assets such as a vehicle or building.

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Based on the video, it explain that the different between Islamic finance and conventional finance. Firstly, money is considered a mode of exchange and a commodity in conventional banking. Banks trade money at high prices and rent out money as well due to its value. Islamic finance considers money as a mode of exchange and a store of value. So, Islamic banks do not trade money as a commodity. Conventional banks operate on the basis of making a profit. It means that only the profit is shared with you. If it is a loss, then it has to be borne by you solely. Islamic banks work on basis of profit and loss sharing. If there is a loss, then the bank would share the loss where it would not be an absolute financial burden on you. Conventional finance aims to maximise returns on the products and services whereas Islamic finance endeavours to help the public.

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WAN BALQIS AINI BINTI WAN SALLAM (A17A0758)

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WAN BALQIS AINI BINTI WAN SALLAM (A17A0758)

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Based on the video, from what I have understand the video is mostly about the difference between Islamic finance and conventional finance. As everyone already know, the obvious difference between Islamic bank and Conventional bank is interest. Conventional bank lend their customers money without real assets, the cycle is continue to the next customers so if there are unpaid loans, the lenders woes, this cycle cause domino effect to defaults. while Islamic bank only invest in actual assets and services, they buy real machinery or products that customers want, then they will sell it to the customer with higher price, that are where Islamic bank profits come from. Interest creates artificial money supply there is not backed by real assets. The results, increasing inflation, heightened volatility, richer rich and poor are poor. Even there are truth example about ex-president Nigeria, Obasanjo, he experienced the worst thing in the world that is compound interest, he said. This is because he have paid triple amount from what he had borrowed for the country’s development, but there are still billions loan unpaid. This proof that compound interest are so injustice that can cause big trouble to any countries that are in developing.

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Islamic banking or Islamic finance or sharia-compliant finance is banking or financing activity that complies with  Islamic law and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include Mudarabah (profit-sharing and loss-bearing), Wadiah (safekeeping), Musharaka (joint venture), Murabahah (cost-plus), and Ijara (leasing).

Sharia prohibits riba, or usury, defined as interest paid on all loans of money (although some Muslims dispute whether there is a consensus that interest is equivalent to riba). Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also haraam ("sinful and prohibited").

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FATIN NOR AFIZA BT MOHD GHOZALI (A17A0102)

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FATIN NOR AFIZA BT MOHD GHOZALI (A17A0102)

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Based on the video, it was explain the difference between Islamic finance and Conventional finance. Firstly, the conventional bank will give a high compound interest to their customers. With the compound interest, the amount of debt will become increase. When the amount of compound interest grow so fast, the borrower is unable to pay back. Besides that, for Islamic finance when the customer are trying to get finance from them, Islamic finance will invest in the actual services and assets such as buy machinery lease out the cars and invest in business. So the asset or services cannot be compound an require only one seller and buyer. It can be conclude that Islamic finance is better than conventional finance.

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Based on my understanding regarding the video, it clearly show the difference of Islamic Finance and Conventional Finance by using real-world comparison. As an example, the amount of debt will be increases as the Conventional Bank charge the compounded interest to the borrowers. Islamic Bank only invest in actual asset and services and it cannot be compounded as there is only one buyer and seller. The Islamic Bank offer interest free. They gain profit by markup the price. Islamic Finance involve buying and selling while Conventional Finance involve borrowing and lending something fleeting. As a conclusion, the video shows that Islamic Finance is way better than Conventional Finance.

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NURUL ZULAIKHA BT FAZILAH @ FAZILAN (A17A0607) 

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NURUL ZULAIKHA BT FAZILAH @ FAZILAN (A17A0607) 

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Based on the video, it explained that how is Islamic finance difference with the conventional finance. Firstly, for the conventional finance, it does not emphasized about what is happening with the money as long as it get repaid. Meanwhile for Islamic finance, they take care about the money on how the customers invest on or making loans for what. Next, the power of compounded the interest. For conventional finance, lenders lend to borrowers to make a profit from the interest charged on the principal amount. For property loans, borrowers pay an interest on the outstanding principal amount. Interest rates can be a fixed rate or based on a floating rate. Meanwhile for the Islamic finance, it avoids interest-based transactions (riba), and instead introduces the concept of buying something on the borrower’s behalf, and selling it back to the borrower at profit. In place of interest, a profit rate is defined in the contract. It also will only invests in the actual assets and services for instance, buying the machinery, lease out the cars and invest in the business. Their assets and the services cannot be compounded and only can one buyer and one seller at any given time

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A17B0195

Based on the video, I can conclude that there have a different between Islamic finance and conventional finance. Islamic finance is different from the conventional finance as its interest free. Islamic finance operates under different principles and they have different risk profiles. The Islamic banks have regulations of two types. First is the government and the central bank that govern the conventional banks as well and the other is the Shariah Supervisory Board that approves the products of the Islamic banks and keeps a check over the implementation of the rules defined by the board. The central bank defines some rules which are specific to the Islamic banks. For example, minimum capital requirements are higher to establish an Islamic bank than the conventional banks. Islamic bank have to pay more taxes and registration costs because it is asset-based banking and the bank has to own the goods it further sells which eventually are paid by the client, but it increases the cost.

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FATIN NOOR DIANA BT ROHAZEY
A17A0100

Based on the video How Islamic Banking Works, it explains about the different between conventional banks and islamic banks. As we know, the famous differences between this two types of banks is interest. For your information, Conventional banks earn a profit by charging fees and interest for their products and services. Conventional banking operates on the concept of interest, especially conventional financing. If you take a loan, the bank would charge interest on it. You are expected to pay back the principal amount along with the total interest amount. Conventional finance also sells money when no money, sells assets before they exist and allows debt to grow unchecked. Besides, the high interest charged to the customers will lead to unpaid loan, increase inflation, heightened volatility and economic disparity. That was the common difference between conventional banks and islamic banking.

Next, Islamic banking is based on Shariah principles which include governing laws in all aspects of life. These principles are guided by Islamic economics. Islamic banks work on the basis of sharing profits and losses. They earn a profit by trading, sharing, leasing and charging fees for their products and services. For your information, Shariah principles forbid charging of any interest, hence Islamic banks do not charge interest. Islamic banking operates more on buying and selling of commodities, leasing and capital sharing rather than charging interest.

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A18B0410

Based on the video of How Islamic Banking Works, its explain how is Conventional Finance different with Islamic Finance. To compare this, we go through to the real world comparison. Conventional Bank will charge the compounded interest to the borrower. With the compounded interest, the amount of debt will become increase. When the amount of compounded interest grow so fast, so the borrower is unable to pay. While in Islamic Bank, they only invests in actual assets and services such as buy machinery, lease out cars or invest in business. The asset and services cannot be compounded and there is only one buyer and one seller. In Islamic Bank, the interest is free. There is no charge of interest in Islamic Bank. So basically, Islamic Bank will earn their profit by markup price. Lastly, the different between Islamic Finance and Conventional Finance is Islamic Finance involve in buying and selling while in Conventional Finance involve in borrowing and lending something fleeting.

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(A17A0555)

Based on the video, the video are show up the How Islamic Banking Works, for example the different between the Conventional Finance and Islamic Finance. To see the different between this two kind of finance we can see through the real world comparison. For example, conventional bank will give high interest to their customer and the interest rate will continue increase to the final customer. It also lend an amount of money to the customer with some percent of interest charged and do not even concern on what really happen to the money either the customer use for herself, lend it to other people or else, as long as the bank gets repaid from the customer. But for Islamic Finance, when the customer are trying to get finance from them, Islamic Finance will invest in the actual assets and services. For example, for buying machinery, lease out cars and invest in small business. This is because assets and service cannot compound and it will only have one buyer and one seller.

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FATIMAH AZ-ZAHRA BT FOUZI
A17A0096

Based on what I watched on the video, how Islamic finance different from conventional finance. Islamic finance is a financial system that operate according to Islamic laws “sharia”. While conventional finance is home financing scheme that offered by financial institutions or banks that are not guaranteed by government agencies.

There is different between Islamic finance and conventional. For example, let say $10,000 invest on conventional bank and Islamic bank, what both of institutions can do. Firstly the conventional bank will finds the credits worthily customers and lends at 5% interest and 7% and 10%. While in Islamic finance, there only in actual assets and services in might buy machinery, lease out cars or invest in business but the transaction is always tied to a real assets or service only. So, there can’t simply compound assets and services there can only have one buyers and one sellers at any given times. Interest on the other hand allows cash to circulate and grow into enormous sums.

The difference is Islamic finance usually buying and selling something real. While conventional finances is borrowing and lending something fleeting. Based on my understanding, we can learn that conventional finance enables ability to sell money when there is no money to sell assets before to underlying asset and allow debts to grow unchecked while borrowers becomes more desperate. While the Islamic finance also avoid from the element that prohibited in shariah Islam which is gharar, riba and maysir. Lastly we can see that Islamic finance is better than conventional finance.

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It can be seen from the video “how Islamic banking works” that the different between Islamic Finance and Conventional Finance.
First of all we can see Islamic finance involves buying and selling something that is real, but conventional finance borrows something that is unclear. Next, Conventional bank lend an amount of money to a borrower with some percent of interest changed. The amount of money lend by the conventional bank may be turn into much more because of the compounded interest applied to the money. While, Islamic bank invest in actual assets and services such as buy machinery, lease out the cars and invest in the business. Other than that, the asset or services cannot be compound and require only one buyer and one seller.

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CHE NUR AZUANATASHA BT CHE RAZUAN (A17A0065)

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CHE NUR AZUANATASHA BT CHE RAZUAN (A17A0065)

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Based on the video of “ How Islamic Banking Works”, all I can conclude that there are a lot of differences between conventional bank and islamic bank. The main differences of conventional bank and islamic bank are the interest. From the video, it can said that, the conventional bank were impose the higher interest per month. Then, what happens if the people cannot pay the loans, they will face all the sort of troubles. Meanwhile, for Islamic banking system, it will allow the people make it loan by only invest in actual assets and services in might buy machinery lease out a car on invest in small business but throughout the transaction is always tied to the real assets or services. All of this are the central point we can’t simply compound assests and services like we can compound interest based on loans. Assets and services can only have one buyer or one seller at any given time. On the other hand, interest allows cash to circulate and grow into enormous sum.
After that, from this video its also include the conventional finance and islamic finance. In conventional finance, its enables the ability to sell money when there is no money to sell assets before there are any underlying assets and to allow debts to grow unchecked while the borrowers become more desperate.  Meanwhile, In Islamic finance interest is prohibited. If an enterprise is financed by debt with an obligation to pay interest, the risk of the business is not being shared fairly.
Instead, Islamic finance requires that finance is provided on the principle of profit and loss sharing. Under shariah law finance can be provided through several types of contract. Each type specifies how risk is shared between the enterprise and the supplier of finance.

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The video literally answer’s the big question on everyone’s mind which is how is Islamic finance different from and better than conventional finance. The best way to find out the difference is with a simple real-world comparison. The conventional bank finds a credit worthy customer and lends at 5% interest. The bank is not particularly concerned about what is happens to this money other than it gets repaid. On the other hand, The Islamic bank only invests in actual assets and services. It might buy machinery, lease out cars or invest in a small business but throughout the transaction is always tied to a real asset or service. Moreover, we can’t simply compound assets and services like we compound interest based loans. An asset or service can only have one buyer and one seller at any given time. That’s the difference between Islamic finance and conventional finance. Conventional finance enables are the ability to sell money when there is no money, sell assets before there are any underlying assets and to allow debts to grow unchecked. While Islamic finance parts ways with conventional finance on more than just being interest free.

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(A17A0592)

Base on the video “How Islamic Banking Work” what can I summarize is different between Islamic Finance and Conventional Finance. In Conventional Financing, lenders lend to borrowers to make a profit from the interest charged on the principal amount. For property loans, borrowers pay an interest on the outstanding principal amount. Interest rates can be a fixed rate or based on a floating rate. In Islamic Finance, lenders only get interest in actual assets and the services and assets and services cannot get the compound. After that, in conventional finance also have compound and unpaid loans. In Islamic finance that only have one buyer and one seller. Next, conventional finance will sell money when they not have money and sell assets before they exist. I think that all my opinion about Islamic finance and conventional finance

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(A17A0319)
From this video “how Islamic banking works”, I can conclude that about comparison between Islamic finance and conventional finance. Firstly, the real word comparison. In Islamic finance only invest in actual assets and service. Such as buy machinery, lease out car and invest in business. Secondly, in Islamic finance buy and selling something in real while conventional finance borrow and lending something flitting. Thirdly, in Islamic finance have interest free different to conventional. It is can describe from 3 real world example such as Obasenjo, ex-president from Nigeria, Nick, home buyer from UK, Faisal, colleague student from USA.

Besides that, the other different is conventional finance sells money when no money ,sells asset before they exist, allows debt to grow unchecked, interest creates artificial supply the result make by real assets such as increase inflation, heightened volatility and economic disparity.

For my opinion about interest rate it is amount that bank charge for the use of assets. The assets borrowed could include cash, consumer goods, or large assets such as a vehicle or building.

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(A17A0632)
Based on the video of the title "How Islamic Banking Works", It can summarize from my understanding about comparison or difference between Islamic Finance and Conventional Finance. Firstly, the conventional finance will impose high interest rate which is 5%-40% interest in a month. The conventional bank also more focusing to get the profit than helping people. For Islamic  bank, when the people want to get the financing, they only invest the actual assets and services. For example, buy machinery, lease out cars and invest in business. The assets and service are not compounded. Next, the conventional bank also sells money when no money before they exist and allows debts to grow unchecked. Last but not least, this video shows that Islamic finance is better than conventional finance because  involve buying and selling to help people needs but conventional finance involve borrowing but get more profit based on the value of borrowing from the interest.

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(A18B0866)
Based on the video, I have learn about ‘How Islamic Finance work’. From my understanding, the important thing I should  know is 'how Islamic finance difference from conventional finance' . First, real world comparison is the best way to find out what the conventional and an Islamic bank can do with the lends. In conventional bank, loans given will involve interest.

Beside, Islamic finance involve in buying and selling something real, but Conventional finance borrowing a lending something not clear resource. Second, about problem with artificial wealth creation. This happen because exist compound interest personal loan, business loan and World Bank loan in conventional bank. Effect from that, occurrence unpaid load which is the value compound interest growth so fast and lender woes. Interest also can make global financial meltdown. Actually, interest in conventional bank mostly give negative effect and not alternate forms of finance. Third, this video have shown me, ‘how does Islamic finance make money’. Islamic bank only invest in actual assets and service, for example buy machinery, lease out cars and invest in small business. In Islamic bank assets and service cannot compound. Thus, only involve one buyer and one seller. Fourth, involve Islamic finance principles. The principle interest-free in Islamic bank can imply that Islamic finance is better than conventional bank. Lastly, I know about the interest issue debt-laden developing country that happen to Abasanjo, Ex-president, Nigeria.

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Nor Asma’ Binti Bakri ( A17A0343 ) Based on this video “ How Islamic Banking Works “, i can summarize that this video talk about different between the conventional finance and islamic finance. Conventional bank lend an amount of money to a borrower with some percent of interest changed . The amount of money lend by the conventional bank may be turn into much more because of the compounded interest applied to the money. While islamic finance, the banks only invest in actual assets and services such as machinery, lease of a car and else. This is because assets cannot be compounded easily like interest based loans. Then, Islamic finance also avoid from elements gharar, riba and maysir. We can see that, islamic finance is better than conventional finance, because it is interest-free.  Lastly, we can concluded from this video that it show how islamic finance is better than conventional finance.

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(A18B0012)
Based on the video that I have been watched , it is talked about "How Islamic Banking Works". According to my understanding, it shows the different between Islamic Finance and Conventional Finance in a real world comparison. Conventional bank will charge compound interest to the borrower. For example, interest can change from lower to much more. It can cause unpaid loan because of the certain issues such as the company get bankrupt.The interest grower so fast and the borrower unable to pay. For Islamic bank, only invests in actual assets and services. It might buy machinery, lease out cars and invest in business. Asset and services cannot be compound. Other than that, Islamic bank allows only one buyer and one seller. If we look at the other alternative, compound interest mostly give negative effect. Next, interest is not a solution and many people will stop believing that interest can solve the problem, but it is not actually.Besides that, Islamic Finance buying and selling something real while Conventional Finance borrowing and lending something flitting. Islamic Finance is better than Conventional finance because of one aspect, interest free. If we apply financing with conventional, the debt will become higher. For Islamic, it is interest free and no need to pay higher debt. The video can be concluded to show that just how Islamic Finance is better than Conventional finance.

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(A17A0432)
From this video that I understood about " How Islamic Banking Works". Firstly, it is about the different between the conventional finance and Islamic finance . Conventional Finance will impose high interest rate to their customer that apply loans from the bank .It also lend an amount of money to a borrower with some percent of interest charged and do not even concern on what really happen to the money either the borrower use for himself, lend it to other people or else, as long as the bank gets repaid from the borrower. The amount of money lend by the conventional finance may be turn into much more because of the compounded interest applied to the money . In Conventional Finance is able to sells money when no money before they exist and allows debt to grow unchecked.
While Islamic Finance when the customers wants to get a financing from the bank they only invests in actual assets and services . For example, buy machinery, lease out cars and invest in business as long as the investment are into something real. This is because assets and services cannot be compounded .
In conclusion , the different between Islamic Finance and Conventional Finance is Islamic Finance involve in buying and selling while conventional Finance involve in borrowing and lending something fleeting.

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Anonymous 5h

NUR ALIA AFIQAH BINTI MOHD BILAL (A18B0529)Based on the video "How Islamic Banking Works", it explains the comparison between Islamic Finance and Conventional Finance. From my understanding, conventional bank will impose high interest rate to their customer that apply loans from the bank and also impose compound to the customer that fail to make a payment on time. Basically, we acknowledged that conventional bank gets profit from interest rate charge to their customer. However, in Islamic bank when the customer wants to get a financing from the bank they only invests in actual assets and services like buy machinery, lease out cars and invest in business in order to give financing to their customers. Besides, in Islamic bank they only allows one buyer and one seller at any given time. So basically, Islamic bank earn their profit by markup. Moreover, in Islamic Finance they also buy and selling something real while Conventional Finance borrowing and lending something flitting. After that, conventional finance also sells money when there is no money, sells assets before they exist, allow debt to grow unchecked and creates artificial supply that all of this causes high inflation, heightened volatility and economic disparity. Last but not least, we believe that conventional bank aims to maximize returns on the products and services whereas Islamic bank endeavors to help the public.

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Anonymous 5h

NURUL AIN NADHIRAH BINTI MD HANAFI (A18B0691) According to the video of the title “How Islamic Banking works”, it can be summarize based on my understanding about the different between Conventional and Islamic finance. Firstly, we can see the different on buying and selling something real. As for Islamic Bank, there will always have business transaction between customer and bank in order to get financing. Islamic bank will invest in actual assets and services such buy machinery, lease out cars. Meanwhile for Conventional bank, customer will get loans but they need to repay with interest rate based loans. Basically for the profit that earn by both Islamic and Conventional bank, they have their own ways which for Islamic bank, their will earn profit from mark-up price and for Conventional, their earn profit from interest rate.Then, from my opinion about interest rate, the higher amount that you borrow from the bank, the higher interest rate will be charged. It stated from video, Conventional bank will lend money to the borrower based on personal income. If the borrower cannot make a repay of that money, Conventional bank will compound the interest rate. It also saying from the video, asset and services cannot simply compounded like we can compound interest based loans. An asset and services can only have one buyer and one seller at any given time. Last but not least, the key difference among the two are that Conventional banks earn money by charging interest on products or fees for services rendered whereas Islamic banking earns their money through profit and loss sharing and other Shariah-compliant contracts of exchange.

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NOR FARHANA BT CHE NOH (A18B0466) From this video, I can summarize that : 1. Firstly, this video talk about Islamic finance which is comprises the differences between Islamic finance and Conventional finance. Then, It also suggest about the best way to find out different with the simple real world comparison. 2. Islamic bank only invest in actual assets and services. It might buy machinery, lease out cars and invest in business. 3. Islamic finance also had another function like buy and selling something real while Conventional finance is borrowing and lending something flitting. 4. Besides that, Conventional finance is able to sells money when no money, sells assets before they exist and allows debt to grow unchecked. 5. Lastly, it also shows the real world example like Abasanjo (ex-president, Nigeria), Nick homebuyer and Faisal, US college student.