Approaching Financial on Islamic banking

Posted in Bank Strategy, Finance

Despite we now able to see the result of Islamic banking trends, but don’t you know the first pioneer or person whom introduce these financial method often get rejection. Of course there are lots of causal, yet below are some approach they did to convince investment.

1. Uncertainty and Causality
Yes, uncertainty is something usual, even became intrinsic to all economic activities. Yet it also resulting on certain cause which cause or affect probabilities of an occurrence.
Factors that control the probability of a random outcome are considered as causes (asbab) of that outcome. In Islamic cultures, uncertainty is strongly linked to causes. Once a decision-maker is faced with an uncertain decision problem, he will take care of the causal factors and leave the final result to the will of Allah, the Almighty. This behavior is well established in Islamic principles.
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Islamic Financial System point of view

Posted in Bank Strategy, Finance

Investment are still consider or related to gambling for some people. The idea of getting big return from other people lost became major issues for some persons.

These made some ideas of evaluation and strategy on “catching” these type of customers. These is where Islamic financial system come in and lately became trends.

But before we go much further, was it correct that investment and gambling are related. Well we couldn’t say so, most gambler realize it or not knows that he will likely in losing then winning. While investor are confident having big chances in winning.
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Islamic Financial System Trends

Posted in Bank Strategy, Finance

These days, Islamic financial system have been new trends in Asian financial market. Some banks in Asia have introduced these new package of financial system.

Despite these Islamic financial system actually not a new things. How does it works? Lets see bit of history first. In early stage of Islamic history, the spread of these religion quickly wide on the globe starting from Arab’s as the central.

The concept of Islamic financial system, starting from the idea that in that early moment, the Muslims society able to live and do financial activity including consumer needs, without taking any interest of it.
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Stocks Investment

Posted in Investment

The number of rates which in average kept on increasing, does attract people on investment. And the most favorite investment is stocks investment. Likely because of the high return, these became favorite investment.

If you do have unused money, you could try on stocks investment, but then some people push them self joining stocks investment with their limited money. Later they put their emergency reserve money as exchange for stocks investment. Was it a wise choice? Lets see it below.
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Returns Elements

Posted in Investment

Talking about investment, return is the most encouraging parts. Each of investment offers different rate of returns, the higher the return, the higher the risk.

What are return elements or components? It is component that effect on the total of your investment return. What are they? Return elements are interest, dividends, and appreciation (or depreciation).

In order to simplify the explanation, lets look at the example. As in bank, some might give you interest for money that you save, while in some point, bank also take interest for some money you lend from them. And don’t you know that the rate of interest is higher then return of your saving.
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