Name: MUJAHID ARIF

Reg No. 2011-ag-1361

Class MBA (R) 3 ea!s
"e#$%o& F1 (A)
"'(m%$$e) Mam D!. "a*a! M'&%!
I&s$%$'$e o+ B's%&ess Ma&ageme&$ , "#%e&#es
Com-a!a$%.e "$') o+ A&&'al Re-o!$s o+
Co&.e&$%o&al Ba&/ a&) Islam%# Ba&/
Co&.e&$%o&al Ba&/ Islam%# Ba&/s
1. Manmade principles are
used as base for the function
of these banks
Shariah rules are the base for the
functions of these banks
2. Predetermined interest rate
is given to the investor
Risk sharing is encouraging
between investor and the
entrepreneur
3. Its main ob!ective is to
ma"imi#e the profit
Its main ob!ective is also
ma"imi#ing profit but according
to Shariah rules
$. %he fundamental function of
these banks is to lend
mone& and get it back with
compounding interest rate
%he fundamental function of these
banks is participation in
partnership business
'. In case of defaulter( this
bank can charge additional
mone& as penalt& or
compounded interest
)o e"tra mone& is charged in case
of defaulter but small amount of
compensation is charged in the
form of charit&
*. +ommercial banks are
interest based due to which
it is eas& to borrow mone&
from mone& market ver&
easil&
%o borrow mone& transaction
should be approved under Shariah
,. %hese banks give high
importance to credit abilit&
of the clients
%hese banks give high importance
to viabilit& of the pro!ect
-. %he relationship between
bank and the client is of the
+reditor and debtor
%he relationship between bank
and the client is of the partners(
investor( bu&er and the seller.
.. /oard of directors are the
top level management
Shariah supervisor& board is the
top level management
10. Ma!or profit is from interest
charged from customers
Ma!or profit comes from the
successful operations of the
pro!ects
11. +urrent and saving
accounts is offered( interest
is paid and there are
restrictions on withdrawals
from saving accounts
Profit is paid and there is no
restrictions on withdrawals from
saving accounts
12. Insurance( financing( loans
and advances are the
products
Mudaraba( Musharka( I!arah and
partnership businesses are the
main products offered b& these
banks
13. +onventional banks
included 0/1(2/1(3/1
etc.
Islamic banks included Mee#an
/ank( 4ubai Islamic /ank etc.
14. +harit& is not the source of
the fund generation
+harit& is the source of the fund
generation
15. +onventional banks have
not charit& account due to
this the& have not charit&
statement
Islamic banks annual reports
include statement of sources and
uses of charit& fund
16. +onventional bank have no
shariah advisor& report but
auditor report
Islamic banks have shariah
advisor& report and auditor report
17. +onventional banks invest
in those securities which
have the fi"ed interest rate
Islamic banks invest as a partner
or as a trader