Islamic Banking Final Project

8/9/2019 Islamic Banking Final Project

1/14

ISLAMIC THEORY AND

FINANCEFINAL PROJECT

Submitted to : Sir Khaid Hu!!ai"

Submitted by:Moeed Rehma"Muhammad Ai#adar$u$I!am Kha" LodhiAbdu Ra%a& Ai


2/14

'

Table of Contents

Introduction((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((()

Major modes of Islamic banking........................................................................4

Literature Review...............................................................................................7

Research Methodology.......................................................................................1

!ritical "nalysis.................................................................................................11

Investment based................................................................................................11

#rade $ased........................................................................................................11

Ijarah...................................................................................................................11

!hallenges...........................................................................................................1%


3/14

)

INTRODUCTION :

In early golden Islamic age& forms of 'roto(ca'italism and free markets were 'resent in the

!ali'hate& where an early market economy and an early form of mercantilism were develo'ed

between the )th(1*th centuries& which some refer to as +Islamic ca'italism+. " vigorousmonetary economy was created on the basis of the e,'anding levels of circulation of a stable

high(value currency -the dinar and the integration of monetary areas that were 'reviously

inde'endent. /uring this age& number of innovative conce'ts and techni0ues were introduced in

early Islamic banking which are still e,isting in this modern Islamic banking world& including

bills of e,change& the first forms of 'artnershi' -mufawada such as limited 'artnershi's

-mudaraba& and the earliest forms of ca'ital -al(mal& ca'ital accumulation -nama al(mal&

che0ues& 'romissory notes& trusts startu' com'anies& & transactional accounts& loaning& ledgers

and assignments. rgani2ational enter'rises similar to cor'orations inde'endent from the state

also e,isted in the medieval Islamic world& while the agency institution was also introduced

during that time. Many of these early ca'italist conce'ts were ado'ted and further advanced in

medieval 3uro'e from the 1%th century onwards.

$anking 'lays a very significant role in the economic develo'ment of a country. "fter artition

of India and akistan $ritish 5overnment6s commission distributed the reserves between

akistan and India. In "ugust 147& various $anks transferred their head0uarters and funds to

India. $efore 'artition of ak(o(8ind& some $anks were o'erated which were !hartered $ank&

5rind(lays $ank& Im'erial $ank of India& "ustralasia $ank and 8abib $ank. "fter the

inde'endence of akistan& Muslim !ommercial $ank Limited& $ank of $ahawal'ur Limited&

unjab 9ational $ank and 9ational $ank of akistan were 'roviding banking facilities to

general 'ublic.

Meezan Bank :

Mee2an $ank is 'ublicly listed com'any& first incor'orated on :anuary *7& 17. It started

o'erations as an Islamic investment bank in "ugust of the same year& which has been licensed by

the %;tate $ank of akistan< to o'erate as an Islamic !ommercial bank on %1st :anuary **.

;tate $ank of akistan granted the 9ations first full(fleged commercial banking license of

Islamic $anking to Mee2an bank Ltd. It was a new era in banking ;ector history in akistan that


4/14

*

Mee2an $ank Ltd adheres strictly to the 'rinci'les of Islamic ;hariah with absolutely no

com'romise& and is recogni2ed as akistans truly 'remier Islamic $ank. Mee2an $ank is

o'erating a''ro,imately more than 1== branches in 4 different cities. In addition& the %;tate

$ank of akistan< itself governs the activities of Mee2an $ank and its ;hareholders. Mee2an

bank Ltd has a strong $alance sheet with e,cellent o'erating 'rofitability& including a ca'ital

ade0uacy ratio that has 'laced the $ank at the to' of industry& a long(term entity rating of ">&

and a short(term entity rating of "1>. Mee2an $ank has been one of the fastest growing banks in

the history of akistan6s banking sector. "verage growth in de'osits has been ??@ 'er annum

during this 'eriod while the branch network grew from 4 to *1. #he bank has develo'ed an

e,traordinary research and develo'ment ca'ability by combining investment bankers&

commercial bankers& ;hariah scholars and legal e,'erts to develo' innovative& viable& and

com'etitive value 'ro'ositions that not only meet the re0uirements of today6s com'le, financialworld& but do so with world(class service e,cellence which our customers demand& all within the

bounds of ;hariah. #he $ank has established a strong and credible management team com'rised

of e,'erienced 'rofessionals. lanning and managing the work efficiency is the key factor of the

Mee2an $anks Managers.

Major modes of Islamic banking:

MAR"$"8"

Literally it means a sale on mutually agreed 'rofit. #echnically& it is a contract of sale in which

the seller declares his cost and 'rofit. Islamic banks have ado'ted this as a mode of financing. "s

a financing techni0ue& it involves a re0uest by the client to the bank to 'urchase certain goods for

him. #he bank does that for a definite 'rofit over the cost& which is sti'ulated in advance.

I:"R"8

Ijarah is a contract of a known and 'ro'osed usufruct against a s'ecified and lawful return orconsideration for the service or return for the benefit 'ro'osed to be taken& or for the effort or

work 'ro'osed to be e,'ended. In other words& Ijarah or leasing is the transfer of usufruct for a

consideration which is rent in case of hiring of assets or things and wage in case of hiring of

'ersons.


5/14

+

I:"R"8(B"L(IC#I9"

" contract under which an Islamic bank 'rovides e0ui'ment& building or other assets to the client

against an agreed rental together with a unilateral undertaking by the bank or the client that at the

end of the lease 'eriod& the ownershi' in the asset would be transferred to the lessee. #heundertaking or the 'romise does not become an integral 'art of the lease contract to make it

conditional. #he rentals as well as the 'urchase 'rice are fi,ed in such manner that the bank gets

back its 'rinci'al sum along with 'rofit over the 'eriod of lease.

MA;"B"M"8

Musawamah is a general and regular kind of sale in which 'rice of the commodity to be traded is

bargained between seller and the buyer without any reference to the 'rice 'aid or cost incurred

by the former. #hus& it is different from Murabaha in res'ect of 'ricing formula. Anlike

Murabaha& seller in Musawamah is not obliged to reveal his cost. $oth the 'arties negotiate on

the 'rice. "ll other conditions relevant to Murabaha are valid for Musawamah as well.

Musawamah can be used where the seller is not in a 'osition to ascertain 'recisely the costs of

commodities that he is offering to sell.

I;#I;9""

It is a contractual agreement for manufacturing goods and commodities& allowing cash 'aymentin advance and future delivery or a future 'ayment and future delivery. Istisna6a can be used for

'roviding the facility of financing the manufacture or construction of houses& 'lants& 'rojects and

building of bridges& roads and highways.

$"I MA"::"L

Literally it means a credit sale. #echnically& it is a financing techni0ue ado'ted by Islamic banks

that takes the form of Murabaha Muajjal. It is a contract in which the bank earns a 'rofit margin

on his 'urchase 'rice and allows the buyer to 'ay the 'rice of the commodity at a future date in a

lum' sum or in installments. It has to e,'ressly mention cost of the commodity and the margin of

'rofit is mutually agreed. #he 'rice fi,ed for the commodity in such a transaction can be the

same as the s'ot 'rice or higher or lower than the s'ot 'rice.


6/14

,

MA/"R"$"8

" form of 'artnershi' where one 'arty 'rovides the funds while the other 'rovides e,'ertise and

management. #he latter is referred to as the Mudarib. "ny 'rofits accrued are shared between the

two 'arties on a 're(agreed basis& while loss is borne only by the 'rovider of the ca'ital.

MA;8"R"D"8

Musharakah means a relationshi' established under a contract by the mutual consent of the

'arties for sharing of 'rofits and losses in the joint business. It is an agreement under which the

Islamic bank 'rovides funds& which are mi,ed with the funds of the business enter'rise and

others. "ll 'roviders of ca'ital are entitled to 'artici'ate in management& but not necessarily

re0uired to do so. #he 'rofit is distributed among the 'artners in 're(agreed ratios& while the loss

is borne by each 'artner strictly in 'ro'ortion to res'ective ca'ital contributions.

$"I ;"L"M

;alam means a contract in which advance 'ayment is made for goods to be delivered later on.

#he seller undertakes to su''ly some s'ecific goods to the buyer at a future date in e,change of

an advance 'rice fully 'aid at the time of contract. It is necessary that the 0uality of the

commodity intended to be 'urchased is fully s'ecified leaving no ambiguity leading to dis'ute.

#he objects of this sale are goods and cannot be gold& silver or currencies. $arring this& $ai;alam covers almost everything& which is ca'able of being definitely described as to 0uantity&

0uality and workmanshi'.


7/14

-

LITERTURE RE!IE"

In 1=%& Islamic banking came into e,istence on an e,'eriment basis on a small scale in a small

town of 3gy't. #he success of this e,'eriment o'ened the doors for a se'arate and distinctmarket for Islamic banking and finance and as a result& in 17s Islamic banking came intoe,istence at a moderate scale and a number of full(fledge Islamic banks was introduced in "rabicand "sian countries. Most of these Islamic banks were in Islamic countries. 8aving started on asmall scale& Islamic banks and non(banking financial institutions are now in o'eration even onmore intensive scale. #oday& Islamic banks are o'erating in more than si,ty countries with assetsbase of over E1== billion and a marked annual growth rate of 1@(1?@. In the credit market&market share of Islamic banks in Muslim countries has risen from *@ in the late 17s to about1? 'ercent today -"ggarwal and Fousaf *. #hese facts and figures certify that Islamicbanking is as viable and efficient as the conventional banking.

#o adhere to the teachings of Islamic Law -;hariGah H avoid 'aying and receiving Riba& avoid5harar& investing in 'rofit(sharing ventures& avoid investing in such business that are unethicaland im'ermissible& and making socially res'onsible investments H are the distinguishing 'ointsas well as goals of all Islamic banks. 8ow well these Islamic financial institutions have'erformed and to what e,tent they have been successful in achieving these goals have been the0uestion marks for the scholars& researchers& and the stakeholders.

"lthough the 'henomenon of Islamic $anking and finance has emerged in recent years anddes'ite the considerable develo'ment of Islamic banking sector& the studies focusing on the

efficiency of the Islamic banks are still limited in number Most of the studies that have beenconducted& generally evaluate the 'erformance of Islamic banks with regards to the relationshi'between 'rofitability and bank characteristics. $ashir -* and& 8assan $ashir -*%em'loy bank level data and 'erform regression analysis to determine the underlyingdeterminants of Islamic 'erformance. ;amad 8assan -* and Dader "sar'ota -*7a''ly financial ratio analysis to assess the 'erformance of the Malaysian Islamic 11;takeholdersJ current account holders creditors& Musharka financing 'artners& Mudarabahinvestment account holders& managers& em'loyees& Islamic community& regulatory agencies.;amad and 8assan -* evaluate intertem'oral and interbank 'erformance in 'rofitability&li0uidity& risk and solvency& and community involvement of an Islamic bank -$ank Islamic

Maalysia $erhad -$IM$ over 14years for the 'eriod 1)4(17. #he study is intertem'oral inthat it com'ares the 'erformance of $IM$ between the two time 'eriod 1)4(1) and 1(17. #his is not a new method -3lyasiani 14. #o evaluate interbank 'erformance& the studycom'ares $IM$ with two conventional banks -one smaller and one larger than $IM$ as well aswith ) conventional banks. Asing financial ratios to measure these 'erformance and K(test and #(test to determine their significance& the results show that $IM$ make statistically significanceim'rovement in 'rofitability during 1)4(17& however& this im'rovement when com'ared with


8/14

.

conventional banks is lagging behind due to several reasons. #his result is consistent with that of;amad -1 and 8assan -1. #he study also reveals that $IM$ is relatively less risky andmore solvent as com'ared to conventional banks. #hese results also conform to risk(return'rofile that is $IM$ is com'aratively less 'rofitable and less risky.

"bdus ;amad -*4 in his 'a'er e,amines the com'arative 'erformance of $ahrain6s interest(free Islamic banks and the interest(based conventional commercial banks during the 'ost 5ulfBar 'eriod 11(*1. Asing nine financial ratios in measuring the 'erformances with res'ect to-a 'rofitability& -b li0uidity risk& and -c credit risk& and a''lying ;tudent6s t(test to thesefinancial ratios& the 'a'er concludes that there e,ists a significant difference in credit'erformance between the two sets of banks. 8owever& the study finds no major difference in'rofitability and li0uidity 'erformances between Islamic banks and conventional banks.

Dader and "sar'ota -*7 utili2e bank level data to evaluate the 'erformance of the A"3Islamic banks. $alance sheets and income statements of % Islamic banks and ? conventional

banks in the time 'eriod * to *4 are used to com'ile data for the study. Kinancial ratios area''lied to e,amine the 'erformance of the Islamic banks in 'rofitability& li0uidity& risk andsolvency& and efficiency. #he results of the study show that in com'arison with A"3conventional banks& Islamic banks of A"3 are relatively more 'rofitable& less li0uid& less risky&and more efficient. #hey conclude that there are two im'ortant im'lications associated with thisfindingJ Kirst& attributes of the Islamic 'rofit(and(loss sharing banking 'aradigm are likely to beassociated as a key reason for the ra'id growth in Islamic banking in A"3. ;econd& A"3 Islamicbanks should be regulated and su'ervised in a different way as the A"3 Islamic banks in'ractice are different from A"3 conventional banks.

;aleh and Rami -*= in order to evaluate the Islamic banks6 'erformance in :ordon& e,amineand analy2e the e,'erience with Islamic banking for the first and second Islamic bank& :ordanIslamic $ank for Kinance and Investment -:I$KI& and Islamic International "rab $ank -II"$ in:ordon. #he study also highlights the domestic as well as global challenges being faced by thissector. !onducting 'rofit ma,imi2ation& ca'ital structure& and li0uidity tests as 'erformanceevaluation methodology& the 'a'er finds several interesting results. Kirst& the efficiency andability of both banks have increased and both banks have e,'anded their investment andactivities. ;econd& both banks have 'layed an im'ortant role in financing 'rojects in :ordan.#hird& these banks have focused on the short(term investment. Kourth& $ank for Kinance andInvestment -:I$KI is found to have high 'rofitability. Kinally& the study concludes that Islamic

banks have high growth in the credit facilities and in 'rofitability.

$ashir -* e,amines the determinants of Islamic banks6 'erformance across eight Middle3astern countries between 1% and 1). Asing cross(country bank(level data on incomestatements and balance sheets of 14 Islamic banks in eight Middle 3astern countries for eachyear in the 1%(1)& the study closely e,amines the relationshi's between 'rofitability and thebanking characteristics. "fter controlling for economic and financial structure indicators such as


9/14

/

H macroeconomic environment& financial market structure& and ta,ation H the study shows somevery im'ortant and interesting results.

Kirst& the 'rofitability measures of the Islamic banks react 'ositively to the increases in ca'italand loan ratios& which is intuitive and consistent with 'revious studies. ;econd& the study

highlights the em'irical role that ade0uate ca'ital ratios and loan 'ortfolios 'lay in e,'laining the'erformance of Islamic banks. #hird& the results indicate that customer and short(term funding&non(interest earning assets& and overhead are also im'ortant for 'romoting banks6 'rofits. Kourth&the results reveal that foreign(owned banks are more 'rofitable than their domestic counter'arts.Kifth& kee'ing other things constant& there is evidence that im'licit and e,'licit ta,es affect thebank 'erformance measures negatively. ;i,th& favorable macroeconomic conditions have'ositive effect on 'erformance measures of the bank. Kinally& the results of the study show thatstock markets are com'lementary to bank financing.

Fudistira -*% in his study makes an em'irical analysis on efficiency and 'rovides new

evidences on the 'erformance of 1) Islamic banks over the 'eriod 17(*. anel dataset forthis time 'eriod is e,tracted from non(consolidated balance sheets and income statements ofthese Islamic banks with s'ecific 'ur'ose of seeing the im'act of recent financial crises onefficiency of Islamic banks. #his study is different from 'revious studies in that it utili2es non('arametric a''roach& /ata 3nvelo'ment "nalysis -/"3 to analy2e the technical efficiency& 'uretechnical efficiency& and scale efficiency of Islamic banks. $eing in line with the 'rinci'le ofIslamic financial system& the intermediation a''roach is used to s'ecify in'ut(out'ut variables ofIslamic banks. #he study finds several results. Kirst& the overall efficiency results indicate thatthere is a small -at just over 1@ inefficiency across 1) Islamic banks& which is considerable ascom'ared to many conventional counter'arts. ;imilarly& global crisis in 1)(1 badly

affected the 'erformance of Islamic banks however& they 'erformed better afterwards. ;econd&the results show that small and medium si2ed Islamic banks faced diseconomies of scale whichsuggests that M" should be encouraged. Moreover& as com'ared to their non listedcounter'arts& 'ublicly listed Islamic banks are found to be less efficient. Lastly& !ountry s'ecificfactors mainly determined the efficiency differences across sam'le data


10/14

01

RE#ERC$ MET$ODOLO%& :

Be have conducted a 'rimary research and used interview and 0uestionnaire as a data collectiontechni0ue. Be have ado'ted a 0ualitative a''roach. Cualitative research aims to get a betterunderstanding through firsthand e,'erience& truthful re'orting& and 0uotations of actual

conversations. It aims to understand how the 'artici'ants derive meaning from theirsurroundings& and how their meaning influences their behavior.

Be conducted an interview with the manager of Mee2an $ankGs branch which is situated in I(Islamabad & he gave us the details about the modes of financing that we targeted. #he interviewwas semi(structured and three interviews were conducted. /ifferent 0uestions were asked by thegrou' members. #he 0uestions were regarding the 'roducts that we selected and course. "''ro,1 to 1? 0uestions were asked and the manage was able to answer them all acce't 1 because ofthe lack of time.

Be also used secondary sources of data collection. ;econdary data is the data which is readilyavailable. Be took data form different sources such as Biki'edia & Mee2an$ank.com etc. /etailsgiven by the manager were analy2ed with the course work we had studied until now in oursubject Islamic #heory and Kinance. #he modes of finance that we studied were efficiently andeffectively ado'ted by the Mee2an$ank.

#he basic focuses of the bank is the 'rohibition of interest and satisfy their customers. we learntthat mostly Islamic banks deals in assets. #hey make investment and contracts to generate thehalaal 'rofit and satisfy their customers


11/14

00

CRITICL NLI# :

In'es(men( based

M)s*araka*

#he Mee2an $ank uses the diminishing Musharakah. "ccording to the information available onbank6s website& in diminishing Musharakah the financier and the client 'artici'ate either in jointownershi' of a 'ro'erty& e0ui'ment or joint commercial enter'rise.

#he share of financier will be divided into the number of units. #he client will 'urchase units oneby one 'eriodically until he is the sole owner of the 'ro'erty.

#he 'rocedure of Musharakah as use by bank is same as we studied in our class. Mee2an $ankuses Musharakah in 'roviding home financing to its clients or customers.

Trade Based

M)daraba*

#his is a kind of 'artnershi' where one 'artner gives money to another for investing in acommercial enter'rise. #he investment comes from the first 'artner who is called Rab-ul-Maal while the management and work is an e,clusive res'onsibility of the other& who is calledMudarib and the 'rofits generated are shared in a 'redetermined ratio.

#he Mee2an $ank offers its services whenever& client is interested to start trade based business.#he initial investment of any business de'ends u'on the overall volume of the business.

Ijara*

+Ijara*+ is a term of Islamic fi0h. Le,ically& it means Gto give something on rentG.

In the Islamic juris'rudence& the term GIjarahG is used for two different situations. In the first'lace& it means Gto em'loy the services of a 'erson on wages given to him as a consideration for

his hired services.+ #he em'loyer is called GmustajirG while the em'loyee is called GajirG& while thewages 'aid to the ajir are called their GujrahG.

#he second ty'e of Ijarah relates to the usufructs of assets and 'ro'erties& and not to the servicesof human beings. GIjarahG in this sense means G to transfer the usufruct of a 'articular 'ro'erty toanother 'erson in e,change for a rent claimed from him.G In this case& the term GIjarahG is
http://www.meezanbank.com/AjaxFunction.aspx?id=437&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=437&width=250


12/14

0'

analogous to the 3nglish term GleasingG. 8ere the lessor is called GMujirG& the lessee is calledGmustajirG and the rent 'ayable to the lessor is called GujrahG.

#he rules of Ijarah are very much analogous to the rules of sale& because in both cases somethingis transferred to another 'erson for a valuable consideration. #he only difference between Ijarah

and sale is that in the latter case the cor'us of the 'ro'erty is transferred to the 'urchaser& whilein the case of Ijarah& the cor'us of the 'ro'erty remains in the ownershi' of the transferor& butonly its usufruct i.e. the right to use it& is transferred to the lessee.

Lease as a mode of financing

Lease is not originally a mode of financing. It is sim'ly a transaction meant to transfer theusufruct of a 'ro'erty from one 'erson to another for an agreed 'eriod against an agreedconsideration. 8owever& certain financial institutions have ado'ted leasing as a mode offinancing instead of long term lending on the basis of interest.

#his transaction of lease may be used for Islamic financing& subject to certain conditions. It isnot sufficient for this 'ur'ose to substitute the name of GinterestG by the name of GrentG and re'lacethe name of GmortgageG by the name of Gleased assetG. #here must be a substantial differencebetween leasing and an interest(bearing loan. #hat will be 'ossible only by following all theIslamic rules of leasing.

#he 'rocedure of Ijarah is same as we studied in class. #he Mee2an bank offers Ijarah on homesand cars.
http://%20void%280%29/http://%20void%280%29/


13/14

0)

C$LLN%E#

/es'ite the im'ressive growth& the Islamic banking industry is facing a number ofchallenges that are 'reventing it from attaining an even higher 'ace of growth. ;ome ofthe most im'ortant issues are identified below.

;8R#2#3RM LICAI/I#F M"9"53M39#

#he lack of investment avenues& es'ecially short2term& has been one of the major 'roblems facedby Islamic Kinancial Institutions -IKIs in akistan. IKIs cannot invest in conventional interest2based sovereign debt instruments such as #2bills and akistan Investment $onds. #herefore&short term li0uidity management has been a key challenge.

R35AL"#RF "9/ #" R3KRM;

5overnment 'atronage and regulatoryNta, reforms 'lay a 'ivotal role for any industry to grow

with lea's and bounds. n the international front& governments like Anited Dingdom andMalaysia are offering rela,ed rules and ta,ation for ta''ing the great demand for ;hariah 2com'liant investment by Muslim investors& s'ecially from the Middle 3ast.

8AM"9 !"I#"L

;ince ince'tion of the industry& the su''ly of trained or e,'erienced human resource has laggedbehind the e,'ansion of Islamic banking. #here is a dearth of 0ualified bankers who are wellversed in Islamic laws as well as contem'orary economics and finance. !urrently& fewuniversities and training institutes are offering courses in Islamic finance but they also face lack

of com'etent human resources to conduct these courses.

I9O3;#M39# "O39A3;

Islamic 'rinci'les sti'ulate certain conditions that need to be adhered to while develo'ingIslamic banking 'roducts. 8aving left with no choice due to the absence of attractiveinvestment avenues& Islamic banking 'roducts mainly rely on asset based financing to generatereturns for their de'ositors.

;#"9/"R/IP"#I9 K !9#R"!#;

#he introduction of various ;hariah standards by "ccounting and "uditing rgani2ation forIslamic Kinancial Institutions -""IKI has started to bring some uniformity into the;hariah based legal framework of the Islamic finance industry but efforts are needed tobring these agreements in conformity with the local ta,ation and related laws so as to makethem more acce'table among all users.

3R!3#I9 K A;3R;


14/14

0*

/ue to unsatisfactory e,'eriences in the name of Islamic $anking in the 'ast& some akistanicustomers are now ske'tical about the authenticity of Islamic banking 'ractices. art of it couldbe attributed to 'sychological tendency to stick to the decades6 old banking habits and 'erce'tionof banking. Most customers have o'inions that are based on misinformation and re'resent lackof understanding of Ki0h issues. !hanging these 'erce'tions has been one of the greatest

challenges for Islamic banks that can only be addressed through collective efforts by all&s'ecially the media.

$39!8M"RD

Asing the conventional interest based benchmark -DI$R as the base of 'ricing an Islamicfinancial 'roduct 'uts Islamic banks as well as their customers at the mercy of movements in theinterest2based money market. "lso& a negative 'erce'tion is created among the clientelethat there is no real difference in Islamic banking 'roducts as these are also using the sameinterest based benchmark. It is argued that Islamic banks should have their se'arate benchmark

for investment 'ricing. #his was not 'ossible initially due to limited market& however& someakistani banks have now taken the initiative and work has already started to develo' an Islamicbenchmark.

Islamic Banking Final Project

Documents

Transcript of Islamic Banking Final Project