Why Islamic Finance (L2T2) by afifie alwi

afifie_alwi — 2019-03-23 22:59:10 UTC

NURUL ATIQAH BINTI SHAZALI (A17A0556)

2019-03-27 06:07:25 UTC

Based on this video, there is a difference between Islamic finance and Conventional finance. Conventional bank will give an interest to the borrower and they will give different compound interest to the different people/ category. We cant blame conventional bank of what happened but we can blame the power of compound interest. Conventional bank give a lending to the borrower and they will sells money when no money, sells assets before they exist, allows debt to grow unchecked and etc. This will give a effect, where is increased inflation, heightened volatility and economic disparity.

While in the Islamic finance asset and services cannot be compound because islamic bank always tied to real assets and services which only one buyer & one seller involve in the given time. Islamic bank earn their profit by trading, sharing, leasing and charging fees for their product and services. They also free from interest.

Nurul Izzati Binti Faishal (A17A0581)

izzati_a17a0581 — 2019-03-27 06:09:09 UTC

After viewing the video, I can conclude that Islamic banking and conventional banking are the same but there are still have differences between this two banks, especially in the interest portion. Conventional bank use interest in loan activities to gain high profits in the long term. In addition, this loan activity may involve various agencies in it and this can cause rising interest from the amount that it should be but not the islamic bank that buys the assets or services first before lending it to the borrower without any compound. Other than that, the activity of this loan activity only involves one borrower and one lender. The effects of these interest can lead to economic recession, rising inflation and so on as a result of the increased interest rates over the payment period. This will affect not only households but also industry and government.

norishnordin — 2019-03-27 06:10:10 UTC

Name: norish ain aminah binti nordin. Matric no: a17a0377. For this summary about the real world comparison. This topic about different between conventional financial and islamic financial, financial conversations is the problem of lending and the problem of domination of unpaid loans then it affects the people and the economy that need to pay the price. Furthermore, in Islamic banking, the assets are not compounded and only one buyer and seller. While in conventions bank is circulation grows more more than when we borrow from it and not for islamic financial even though we borrow it the money is not growing increasingly interest or compound and there are only one buyer and one seller and they are able to sell the money when not there is money and sell assets in existence. And allow debt to grow uncontrolled. Conversational baking supplies provide artificial supplies and actual assets are not supported and cause increased infusion. Finally conversation banks cause interest rates are too high and unfair to borrowers.

2019-03-27 08:35:21 UTC

NURUL ‘SYAKIRAH BINTI ROSLAN
A17A0545
Based on this video, it can be conclude that islamic banking and conventional banking there have differences which is the conventional will apply interest to the customer who have borrow the money. While islamic bank only one buyer and one seller will be involved at time given. By having the interest, there will be effect to the increased inflation, heightened volatility and economic disparity. In the Shariah Islam, we as a muslim have to avoid the interest because the interest is Haram.

2019-03-27 14:16:54 UTC

Puteri Najihah Binti Mat Desa (A17A0617) Based on the video, what can i conclude there is difference between Islamic Finance and Conventional Finance. Conventional Bank have interest to the borrower and they will give different interest to the different class of people. In the Islamic Finance, there is no interest that given to borrower or customer.

A

2019-03-27 15:40:25 UTC

ABDUL QAYYUM BIN MUSTAFA (A17A0002)
Based on this video i want to do my own summarise. Firstly about the different between conventional and Islamic banking. The different is in conventional have the interest to debtors. The interest can make the people unwilling to paid the amount based on their income. But for Islamic Banking no interest but just invest in actual assets and services only.
Next, from the interest that apply by conventional there are some disadvantages in effect the economic. Such as, increased inflation, heightened volatility and economic disparity between rich and poor people.

NUR ANIS FAZLIN BINTI MOHD SAUFI (A17A0408)

anisfazlin63 — 2019-03-28 04:03:34 UTC

From the video, it has explain about Conventional banking and Islamic banking that both of them have their differences.
For the conventional banking is a commodity besides medium of exchange and store of value. Consequently, it very well may be sold at a cost higher. Islamic banking is not a commodity though it is used as a medium of exchange and store of value. Therefore, it cannot be sold at a price higher.

Based on what I have understand, when interest rates are reduced, more people are able to borrow more money. It show consumers have more money to spend, causing the economy to grow. When the interest rates are increased, people do not able to borrow money and consumer tend to save as returns from savings are higher.

2019-03-28 05:33:02 UTC

NUR SHAZANA BT MOHD ZAIDI (A17A0493)

Personal Summary :

From the video that i watch, I can summarize that there are different between conventional and islamic finance. It can be seen through real world comparison. Conventional lend cash with interest while islamic finance only invest on actual asset and services. In interest, it allow the cash to curculate and growth in market compare to islamic finance with its assets and services cannot compound there only one seller and one buyer. For short, islamic finance involve buying and selling something real while conventional involve borrowing and lending something fleething.

How does conventional finance differ than islamic finance?
- sells money when there no money
- sells assets before they exist
- allow debt to grow unchecked

NURUL HANIS BT MOHD NAZRI A17A0572 L2T2

2019-03-28 05:45:45 UTC

Based on this video,I can say that there are huge different among conventional finance and islamic finance.Firstly,from the conventional finance it give the bad impacts to the borrower when they make the loan and something not going well with their bussiness so the loan do not get repaid.This could make domino affect to default.Beside that, the conventional finance also enable sells money when no money ,sells assets before they could conform the existence of the assets and also allow debts to grow unchecked.The impacts of interest that can be found in conventional finance can cause high inflation,heighted voladity and economic disparity and it can be said that the compounded interest is worst for poor country.
Meanwhile,the islamic finance can became a good option for the borrower to make a loan because islamic finance only invest in actual assets and services and the transaction always tied to real assets and services.The islamic finance not implement interest that force the borrower to pay in a very huge amount than how much they borrow.In conclusion,the islamic finance is the best option for the borrower because it guarding the welfare of the borrower and give the win win situation for both parties.

2019-03-28 08:20:23 UTC

Name: Nik Ainain Bt Nik aman
Matric no:A17A0313

Based on video, what can I summarizes are conventional bank practices compound interest . The interest charge become higher . After that, conventional finance also did not care about what happens to the money , as long as the borrowers pay the money with interest . Then, conventional finance also allows selling money when no money,sells asset before they exist and allow debt grows unchecked. It will cause inflation and dominos effect which make the rich become richer and poor become more poor. It really different with islamic finance , they only invest in actual assets and services . Islamic finnace also practice interest-free . It will prevent the growing debt .

In conclusion, islamic finance is better than conventional finance because it is fair situation for banks, for people and for all involved in financial.

2019-03-28 12:34:33 UTC

NURUL HANIS BINTI HALIM (A17A0571)
Summary:
- There are many differences between Islamic finance and conventional finance. Conventional finance made the initial loan but the power of compounded interest grow fast. With this, people who make loans will become bankrupt because they have to pay high interest and loans do not get repaid.
- Interest allows cash to circulate and grow into enormous sums.
- In contrast to Islamic finance, the bank will invest in actual assets and services, for example buy machinery, car or invest in business. In other words, the transaction is always tied to real assets.
- Asset and services cannot simply compound like convensional bank interest based loans. It can only have one buyer and one seller at any given time.
- Conclusion, Islamic financial is a very good alternative to choose than conventional financial because of interest free.

Nurnajwa Binti Mhd Salleh (A17A0533)

2019-03-31 00:20:18 UTC

Based on the video, what I can conclude about the difference between Conventional banking and Islamic banking. Conventional banking is based on financial principles to earn more profit. Conventional banking would mean activities that earn profits such as lending, safeguarding and exchanging money. Conventional banks earn a profit by charging fees and interest for their products and services. While, 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.

Wan Nur Atikah binti Wan Abdullah (A17A0772)

2019-03-31 09:59:50 UTC

Based on the video that I can summarize, there are many different between Islamic banking and conventional banking. Firstly, Islamic banking not use money as commodity though it is used as a medium of exchange and store of value. Therefore, it cannot be sold at a price higher than its face value or rented out. While conventional banking use money as a commodity besides medium of exchange and store of value. Therefore, it can be sold at a price higher than its face value and it can also be rented out. Secondly, Islamic banking operates on the basis of profit and loss sharing. In case, the businessman has suffered losses, the bank will share these losses based on the mode of finance used (Mudarabah, Musharakah). For the conventional banking, interest is charged even in case the organization suffers losses by using banker funds. Therefore, it is not based on profit and loss sharing. Thirdly, Islamic banking tends to create link with the real sectors of the economic system by using trade related activities. Since, the money is linked with the real assets therefore it contributes directly in the economic development. While conventional banks use money as a commodity which leads to inflation. Lastly, profit in Islamic banking is on trade of goods or charging on providing service is the basis for earning profit while conventional banking, time value is the basis for charging interest on capital. The conclusion that I can conclude, Islamic banking is more care the welfare of borrowers than conventional banks.

NUR HAKIIMAH BINTI AZIZ (A17A0453)

2019-03-31 16:06:13 UTC

Based on this video , what can i conclude is islamic finance and conventional finance have difference characteristic. It can be seen through real comparison that for conventional bank will lend cash with the interest for customer to gain their own profit .It can give a bad impact to the borrower who had unwilling to pay when they make the loan from conventional financing. Contrast to the islamic finance it can become a good option to make a loan. For the islamic finance it only invest in actual assets and all the transaction will be tied to the real assets and services. The islamic finance also not implement interest that force the customer to pay in a certain time period. Besides, The conventional finance it will be had penalty charged for those customer has been late to pay the loan and interest contrast to islamic finance no penalty charged . It cab effect the economic, household and goverment such as it can rising recession and inflation for economic, heightened volatility, and economic disparity .
In conclusion , we as muslim must choose the islamic finance to avoid the interest because the interest in prohibition and Haram .It is also to protect of fundemental of maqasid shariah ..

2019-04-01 03:02:13 UTC

HARIZ RIFQI BIN RAMLI
A17A0117

Based on the video that I can summarize is the differences between the Islamic Finance and Conventional Finance. Conventional banking is based on financial principles to earn more profit in their business. It means all the business transaction has coumpund interest to their customer. Hence from Islamic perspective, Islamic banking not use the money as commodity though it is used as a medium of exchange and store of volue. It involves only investment in actual assets and services in their business.
In conclusion, we must choose Islamic banking and finance in any transaction because in Islamic Finance does not have any interest that imposed by Islamic Banking.

2019-04-02 03:42:51 UTC

NURSHAHEERA BINTI AB RAHMAN (A17A0537)
Based on the video that I watch, there are many different between the conventional bank and Islamic bank. For example about the interest. In conventional bank, the bank have the interest that debtors should paid eventhough they are not willing to pay it but in Islamic bank there is no interest because the debtors only invests in actual assets and services such as buy machinery or invest in small business. In the nutshell, we need to choose the Islamic Finance as its fulfils Shariah compliance.

ZAHRAA AIMUNI BINTI ZAHARIM (A17A0898)

2019-04-02 06:41:02 UTC

Based on video I watch, there are many different the conventional bank and Islamic bank which is interest
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.

nurhidayahkarim97 — 2019-04-02 12:50:52 UTC

Name: Nurhidayah binti Karim
Matric no: A17A0530

Based on the video, there are different between conventional finance and Islamic finance. Conventional bank have compound interest. The bank not concern about what happen to this money while Islamic bank only invests in actual assets and services. Islamic finance is about buying and selling something real while conventional finance is about borrowing and landing something flyting. Conventional finance allow sells money when no money, sells assets before they exist, and allows debt to grow unchecked. While Islamic finance, interest-free.
In conclusion, islamic finance is better than conventional finance because islamic finance is interest free.

iffahzatul_a17a0123 — 2019-04-02 17:31:38 UTC

Name: Iffahzatul Haziyah Binti Mustapa
Matric No: A17A0123

After I’ve watched the video, what I can summarise here is there are differences between Islamic Banking and Finance and Conventional Finance. It is a common knowledge that Islamic Banking and Finance is operates based on the Shariah compliant where all the activities are followed by the Shariah law. Islamic Banking and Finance only invests in an actual assets and services for example buy some machinery, lease out a cars or invested to a small business. Assets and services cannot be simply compounded where its only can have one buyer and one seller at one time. All of the transactions are always tied to the assets and services. Differ from the Conventional Finance, when there financial crisis exists, they will sell the money, also they will sells assets before it underlying. The worst thing is while the borrower become more desperates, the debt are allowed to grow unchecked. The interest itself creates an artificial supply that were not backed by real assets which in result the inflation increases, the volatility hightened and the economic disparity where the rich become richer and the poor become poorer. The most obvious difference when compared to the Conventional Finance is that Islamic Finance are forbidden to charge interest.

NURFAIQAH ALYA BINTI AZLAN AGUS (A17A0523)

faiqah_a17a0523 — 2019-04-06 08:47:44 UTC

Based on the video that i have watched, i can summarize that there are totally difference between Islamic banking and Finance with Conventional banking and Finance.
It is the basic knowledge to know that Islamic Finance is based on the Shariah Compliant where the activities are followed by the Shariah law that had being provided.

Islamic Banking and Finance can be the best option for borrower to make a loan because it only invest in actual assets and services. The assets and services cannot be simply compound as they always tied to the real assets and services. Assets and services only need one buyer with one seller at any given time so it will be fair and trusted without involving others.
Meanwhile, the Conventional Banking and Finance will give bad impacts to the borrower when they apply the loan because it will charges higher interest. Besides, it is able to sell money when there is no money, sells assets before they exist and also allow debts to grow unchecked while borrower becomes more desprates. From that it can cause high inflation and heightened volatility.

As a conclusion, Islamic Banking and Finance is the best alternatives that we need to choose than Conventional Banking and Finance because it is free of interest and followed the Shariah.

2019-04-11 10:35:42 UTC

NUR ATHIRAH BINTI AZMI (A17A0414)
From my understanding, the video means that both of Conventional banking and finance and Islamic banking and finance work in different ways. Islamic banking practices are based on Islamic Shariah laws. Interest in completely prohibited in Islamic banking. It is asset based financing, in which trade of elements prohibited by Islam are not allowed. On the other hand, Conventional banking is profit-oriented and its purpose is to make money through interest. It means that Islamic banking works for balancing the economic meanwhile Conventional banking will make the rich people become richer and the poor people become poorer.

nurmazikamappukri — 2019-04-12 08:38:45 UTC

Nur Mazika Binti Mappukri
A17A0478

Based on the video, I can summarise that Islamic Finance and conventional banking work in different ways. Islamic Banking in an Ethical Banking System and its practice are based on Islamic (Shariah) laws. Interest in completely prohibited in Islamic banking. It is asset based financing, in which trade of elements prohibited by Islam are not allowed. 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. In Islamic Banking, loss is shared when the organization suffers loss and due to failure of the project, the management of the organization can be taken over to hand over to a better management.

On the other hand, Conventional Banking is an Un-Ethical Banking system based on Man-Made Laws. It is profit-oriented and its purpose is to make money through interest. Commercial banks make money by providing loans and earning interest income from those loans. Customers who deposit money into these accounts effectively lend money to the bank and are paid interest. However, the interest rate paid by the bank on money they borrow is less than the rate charged on money they lend. In conventional Banking, money is a product besides medium of exchange and store of value and the expanded money in the money market without backing the real assets, results deficit financing. Interest also is charged even in case, the organization suffers losses whereby no concept of sharing loss. Therefore, due to failure of the projects the loan is written off as it becomes non performing loan.

NUR SHUHAIRA BT ZAKARIA (A17A0495)

2019-04-13 07:11:21 UTC

What I can summarize from this video is that there is a difference between Conventional banking and Finance and Islamic banking and Finance. Conventional banks only pursue profit. It use interest for the customer to gain the profit without concern the customer bankrup and bad impact of the borrower. However, Islamic banking is operates based on the Shariah Compliant which all the activities followed by the shariah law. For Islamic bank, it only invests in actual assets and services which is assets and services cannot compound and have only one buyer one seller in certain time. In conclusion, it is clear that Islamic finance more proftiable and fair to all.

NUR’ AIN IZZATI BINTI MAZELAN (A17A0388)

2019-04-14 09:21:54 UTC

Based on the video, there are differences between Islamic Banking & Finance and Conventional Banking and Finance. Islamic Banking is an Ethical Banking System, and its practices are based on Islamic (Shariah) laws. Interest in completely prohibited in Islamic banking. It is asset based financing, in which trade of elements prohibited by Islam are not allowed. While Conventional Banking is an Un-Ethical Banking system based on Man-Made Laws. It is profit-oriented and its purpose is to make money through interest.

For example, Islamic Banking only invests in actual assets and services such as buy machinery, lease out cars and invest in business. While Conventional Banking, they sells assets before they exist and debts financing gets the advantage of leverage for an enterprise, due to interest expense as deductible item form taxable profits.

MUHAMMAD HANNAN (A17A0277)

2019-04-15 06:37:23 UTC

Based on the video, from my understanding, it is about the different between islamic banking and conventional bank. Islamic bank only invest in actual asset and services such as buy the machine while conventional bank borrowing and lending something fleeting.
After that, Islamic banking also underliying of operation and activities are founded in islamic or shariah rules. That all transactions are administered without involving elements of interest riba'. And For the conventional bank the operating mode and function are based on capitalistic prinsiples. The main function is to lend money and get it back along with compound interest.

WAN MOHAMAD AIZAT BIN WAN ZULKIPLI (A17A0762)

aizat_a17a0762 — 2019-04-15 08:23:02 UTC

-This video explain the different of Islamic finance and conventional. Conventional Bank did not concern to the money that it give to the customers,the transaction is based on interest. It is about borrowing and lending something fleeting. While Islamic finance only invest in actual asset and service. It buying and selling something real. The interest can cause increase of inflation,heightened volatility and economic disparity.

NURUL FITRIA BINTI RAMLAN (A17A0567

2019-04-18 04:28:36 UTC

From this video, we can know different between islamic finance and conventional finance. Conventional banks only pursue profit. It use interest for the customer to gain the profit without concern the customer bankrup and bad impact of the borrower. However, Islamic banking is operates based on the Shariah Compliant which all the activities followed by the shariah law. For Islamic bank, it only invests in actual assets and services which is assets and services cannot compound and have only one buyer one seller in certain time.

MUHAMMAD SHAHRIZAN BIN MUHAMMAD ARIF (A17A0286)

2019-05-04 16:04:09 UTC

Based on the videos I have watched there are some aspects in them. First is the difference between conventional and Islamic banking. The difference is in conventional interest in the debtor. But for Islamic Banking only invest in actual assets and services. The second is that of conventional significance there are some deficiencies that occur in the economy due to rising inflation, increasing uncertainty and economic distinction between rich and poor.

NUR ADILAH LATIFAH AB AZIZ (A17A0389)

adilah_a17a0389 — 2019-05-07 04:19:13 UTC

From the video, it explains the differences between Conventional banking and Islamic banking. Islamic banking practices are based on Shariah law. Interest is completely prohibited in Islamic banking whereas Conventional banking is profit-oriented and make money through interest. Islamic banking works for balancing the economic meanwhile Conventional banking does not take into consideration about the stability of wealth.

Nur Maisarah Afiqah Bt Norhaidi (A17A0475)

2019-05-07 07:08:25 UTC

Based on this video, i can summarize that there are differences between Islamic Banking and conventional banking. In Islamic Banking all activities must follow the Shariah Compliance. Thats mean, Islamic Banking avoid Riba, Maysir and Gharar. In Islamic Banking are used concept sell and buy while conventional used concept borrowing and landing. Islamic banking can’t sell assets if they dont have that assets. In conventional they land a money to us and take interest when we want to pay back the money.