FAISALABAD: Speakers at a seminar on ‘Recent developments in Islamic banking and finance: lessons for Pakistan’ underscored the need to study Islamic financing systems.
Keynote speaker Prof Dr Ishaq Bhatti, the founding director of the Islamic banking and finance programme at the La Trobe University in Australia, said the Islamic banking system is a beautiful blend of traditional and Islamic financing systems.
Presenting a comparison of traditional and Islamic banking, he said that Islamic banking can only be based on transactions whose source and objectives are in accordance with Islamic law. On the contrary, conventional banking is mainly concerned with the elimination of risk from financial transactions, whereas Islamic banking places the burden of risk on the bank, while placing the responsibility of labour with the customer.
Published in The Express Tribune, January 25th, 2013.
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