DIFFERENT BETWEEN IB AND CB

DIFFERENCES BETWEEN IB AND CB

ASSALAMUALAIKUM AND HYE...

Today we need to disscuss about this topic because this topic is a basic knowledge that needs to be known before studying about this subject more deeply. 

ISLAMIC BANKING is banking or financing activity that complies with shariah or Islamic Law and its practical application through the development of Islamic Economics.Some of modes Islamic Banking include Mudharabah ,Wadiah,Musharakah,Murabahah and Ijarah.

While

CONVENTIONAL BANKING is banking legal with banking law. The return for Conventional banking is interest ,commission or fee.

ISLAMIC BANKING	CONVENTIONAL BANKING
1) It has become one of the service oriented function of the islamic banks to be a zakat collection centre and they also pay out their zakat.	1)  Does not deal with zakat.
2) No provision to charge any extra money from the defaulters.	2) It can charge additional money in case of defaulters.
3) Can only guarantee deposits for deposit account ,Thus depositors are guaranteed repayment of their funds.	3) Has to guarantee all its deposits.
4)  It aims at maximizing profit but subject to shariah and legislative restrictions.	4) It aims at maximizing profit with only legislative restrictions.
5) The relationship of an islamic bank with its client is that of partners , investors and entrepreneur,buyer and seller.	5) The relationship of the bank witj its client, is that of creditors and debtors.