History of Islamic banking Term Paper Example | Topics and Well Written Essays - 1000 words

History of Islamic banking - Term Paper Example One of the major functions of commercial banks is to mobilize savings and offer loans to the potential investors in the economy (Saeed, 1996). The system of regular banking asks for a certain price known as interest on the loans being given to the investors (USAID, 2005). The rate of interest charged on loans becomes directly proportional to the time period for which the loan is offered. The system is not the same for all the banks following Islamic banking system. This process of banking donnot involve in offering loans that are interest free. It is believed that ‘riba’ or ‘usury’ which is known as interest is firmly forbidden under the regulations of Muslim law. Islamic banks are rapidly growing all over the world both in Muslim as well as non Muslim nations. So apart from Islamic nations like Egypt, Sudan etc; Philippines, U.K., Denmark are also widely establishing Islamic banks in their economies although they comprise Muslim population as minorities. Is lamic banking theory thinks that it is incorrect to take benefits from borrowers. Unlike the commercial theories of regular banking, Islamic banking follows ‘riba’ which is actually based on concepts like ‘mudaraba’ and ‘musharake’ (Hamza, 2013). Thus by this process the creditors cannot raise the nominal value of loans offered. The board of Islamic banks are formed with Shariah scholars who would see that the interest of the laws is duly considered by almost all the banks following Islamic laws. The principles of Islamic banking explains paying as later after buying is ‘halal’ but if someone charges on the credited money even that is also punishable (Hosein, 2011). The regular banks deny loans without collaterals or interests. Flexible verses Fixed Return on Deposits The commercial regular banking system offers fixed rates of return on the deposits made by the depositors. The rate of fixed return varies according to the time perio d for which the deposits are made. In general there are three types of deposits or accounts that can be opened in regular banks which are savings, current and fixed deposits. As estimated the highest return is received from the fixed deposits, then savings and finally current account deposits. The system is not the same with Islamic banks, the depositors depositing money in such banks get variable returns. This is because the returns are given from the profits made by the Islamic banks. So the depositors may land up with either profit or loss. These banks follow a strict rule of investing in the poverty alleviation and rural development programs. Often due to the greater importance given in the welfare aspects potential deposits face losses kept in these banks. It is found that the lack of interests in depositors is becoming problematic in the expansions of such banks. It is stated despite of all the problems faced by the depositors no one has actually faced problems of making a los s in an Islamic Bank. The command deposits kept in the Islamic banks are under the contract of ‘Wadiah’. The fund deposited in the Islamic banks is not used for investments in the market. The fund can only be invested if it is authorised by the depositors. The different current, savings, or other deposit plans offered by an Islamic bank are always made very attractive to the depositors. The contract of ‘Mudharaba’ often set the demand deposits in the Islamic banks. Sometimes the rate of interests that the depositors receive is directly proportional to

Dubliners :: Irish History Literature Dublin Essays

Dubliners James Joyce wrote the book Dubliners at a critical period in Irish history. The book focuses on many tracks that the people of Dublin were stuck on at the time. Joyce provided insight into exactly why Dublin was so downtrodden and depressed. For my analysis I chose to write about â€Å"The Dead,† â€Å"After the Race,† and â€Å"Counterparts.† In these stories, Joyce portrays individuals whose freedom of choice leads them to continue their miserable lives through their irresponsible behaviors. In each of the stories I chose to write about in Dubliners, money played an important role in the overall feel of the particular story. In â€Å"After the Race,† young Jimmy Doyle, fresh out of college, from an affluent Irish background decides to gamble away money his father had given him to invest. Joyce states, â€Å"Rapid motion through space elates one; so does notoriety; so does the possession of money. These were three good reasons for Jimmy’s excitement.† (37) However, Jimmy seems to be a fun loving kind of guy, therefore going to the yacht and partying with his friends until the sun comes out is nothing new for him. Jimmy is showing a lack of responsibility with his money and exercising free will, meanwhile it seems as if all Jimmy ever cares about is partying and having a good time. It states in the text that young Mr. Doyle was not the most academically motivated students while at Cambridge (36), and in fact lived the good life while his f ather funded his had to have his father buy his way into the school. It is money that allows these young men to party carelessly. Without a care in the world, these particular young lads in Dublin lead a life of luxury while so many are struggling to put food on the table. The money issue in â€Å"Counterparts† is a little more desperate. Farrington is a poor, lowly worker at a law firm who hand copies papers. To escape his responsibilities, Farrington decides to drink away the afternoon with his friends in a tavern, instead of making up the work that he is responsible for. Moreover, to get the necessary funding to drink, Farrington pawns his watch off to get drunk.

Legal Requirements for Employee Benefits Essay

As we discussed earlier in this chapter, some benefits are required by law. This requirement adds to the cost of compensating employees. Organizations looking for ways to control staffing costs may look for ways to structure the workforce so as to minimize the expense of benefits. They may require overtime rather than adding new employee, hire part-time rather than full-time workers(because part-time employees generally receive much smaller benefits packages),and use independent contractors rather than hire employees. Some of these choices are limited by legal equirements, however. For example ,the Fair Labor Standards Act requires overtime pay for nonexempt workers, as discussed in chapter 11. Also,the Internal Revenue Service strictly limits the definition of â€Å"independent contractors,â€Å" so that employees cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee . Other legal requirements involve tax treatment of benefits ,antidiscrimination laws, and accounting for benefits. Tax treatment of benefits A modern, flexible benefit plan provides a number of potential tax advantages to employees and employers. Employees A flexible benefit plan allows employees to choose to swap some of their existing benefits or purchase benefits from a menu of options. Payments in excess of the employees spending allowance are normally collected via a gross salary adjustment. If employees exchange salary for tax exempt benefits (pensions, life cover, childcare vouchers, mobile phones, etc. ), they do not pay tax or National Insurance on the amount exchanged. This gives a basic rate tax payer earning less than the National Insurance (NI) Upper Earnings Limit (UEL) a saving of 33% compared to receiving the money as salary. For example, an employee that exchanges ? 200 per month of their salary for childcare vouchers and additional pension payments will save ? 792 in tax and NI compared to taking the money as salary. Even if the benefits are not tax exempt, employees can still exchange salary for employer provided benefits and, whilst they will be charged income tax, they save NI as their salaries have been reduced by the value of the benefit. This gives employees earning under the UEL an 11% saving. Employers Employers participating in a flexible benefit plan do not pay employer’s NI on payments on payments to exempt benefits. If these payments have been exchanged from salary by employees then the employer will save 12. 8% employers NI on the amounts. For example, an employee that exchanges ? 200 per month of their salary for childcare vouchers and additional pension payments will deliver an annual NI saving to the employer of ? 307. Antidiscrimination Laws  Legal treatment of men and woman includes equal access to benefits, so the organization may not use the employee’s gender as the basic for providing more limited benefits. That is the rationale for the Pregnancy Discrimination Act, which requires that employers treat pregnancy or childbirth, the employee needs time off for conditions related to pregnancy or childbirth, the employee would receive whatever disability benefits the organization offers to employees who take disability leave for other reasons. Another area of concern in the treatment of male and female employees is pension benefits. On average, woman live longer than men, so on average, pension benefits for female employees are more expensive (because the organization pays the pension longer), other things being equal. Some organizations have used this difference as a basis for requiring that female employees contribute more than male employees as a basis for requiring that female employees contribute more than male employees to defined benefit plans. The Supreme Court in 1978 determined that such a requirement is illegal. According to the Supreme Court, the law is intended to protect individuals, and when women are considered on an individual basis ( not as averages ), not every woman outlives every man. Age discrimination is also relevant to benefits policies. Two major issues have received attention under the Age Discrimination in Employment Act (ADEA) and amendments. First, employers must take care not to discriminate against workers over age 40 in providing pay or benefits. For example, employers may not set an age at which retirement benefits stop growing as a way to pressure older workers to retire. Also, early retirement incentive programs need to meet certain standards. The programs may not coerce employees to retire, they must provide accurate information about the options available, and they must give employees enough time to make a decision. In effect, employees must really have a choice about whether they retire. When employers offer early retirement, they often ask employees to sign waivers saying they will not pursue claims under the ADEA. The Older Workers Benefit Protection Act of 1990 set guidelines for using these waivers. The waivers must be voluntary and understandable to the employee and employer , and they must spell out the employee’s rights under the ADEA. Also , in exchange for signing the waiver, the employee must receive â€Å"compensation† that is , greater benefits than he or she would otherwise receive upon retirement. The employer inform employee that they may consult a lawyer before signing, and employee must have time to make a decision about signing-21 days before signing plus 7 days afterward in which they can revoke the agreement. The Americans with Disabilities Act imposes requirements related to health insurance. Under the ADA, employees with disabilities must have â€Å"equal access to whatever health insurance coverage the employer provides other employees. â€Å"Even so, the terms and conditions of health insurance may be based on risk factors -as long as the employer does not use this basis as a way to escape offering health insurance to someone with a disability. From the standpoint of avoiding legal challenges, an employer who has risk-based insurance and then hires an employee with a disability is in a stronger position than an employer who switches to a risk-based policy after hiring a disabled employee. Accounting Requirements Companies’ financial statement must meet the many requirements of the Financial Accounting standards Board ( FASB) . These accounting requirements are intended to ensure that financial statements are a true picture of the company’s financial status and that outsiders, including potential lenders and investors , can understand and compare financial statements . Under FASB standards, employers must set aside the funds they expect to need for benefits to be paid after retirement, rather than funding those benefits on a pay-as-you-go basis. On financial statement, those funds must appear as future cost obligations. For companies with substantial retirement benefits, reporting those benefits as future cost obligations greatly lowers income each year. Along with rising benefits costs. This reporting requirement has encouraged many companies to scale benefits to retirees. Summarize the regulation affecting how employers design and administer benefits program. Employers must provide the benefits that are required by law, and they may not improperly classify employees as â€Å"independent contractors† to avoid paying benefits. Tax treatment of qualified plans is favorable, so organizations need to learn the requirements for setting up benefits as qualified plans-for example, ensuring that pension plans do not discriminate in favor of the organization’s highly compensated employees. Employers may not use employees’ gender as the basis for discriminating against anyone, as in pension benefits on the basis that women as a group may live longer. Nor may employers discriminate against workers over age 40 in providing pay or benefits, such as pressuring older workers to retire by limiting retirement benefits When employers offer early retirement, they must meet the requirements of the Older Workers Benefit Protection Act of 1990. Under the Americans with Disabilities Act, employers must give disabled employees equal access to health insurance. To meet the requirements of the Financial Accounting Standards Board, employers must set aside the funds they expect to need for retirement benefits ahead of time, rather than funding the benefits on a pay-as-you-go basis

The Holy Bible as a Sustained Allusion Essay - 1488 Words

The Bible as a Sustained Allusion The Bible is a sustained allusion throughout the course of East of Eden, paralleling with the eternal story of Cain and Abel. According to the Bible, Cain is the quot;tiller of the groundquot; (Genesis 4:2). Caleb Trask, a farmer at heart, made a vast amount of money by selling beans. Upon presenting Adam with his present of fifteen thousand dollars, Adam not only discarded the gift, but caused Cal pain by comparing him to his godly brother, Aron, who graduated high school and started college at an early age. Adam wished that Cal could have given him something to be proud of-something momentous. Adams reaction induced Cal with excessive wrath out of rejection. In the Bible, the Lord quot;had†¦show more content†¦Adam Trask moved out to California with his pregnant wife, Cathy, to farm the new, fertile land. With the help of Samuel Hamilton, Adams benign neighbor, Adams farm immediately started to prosper. Samuel took to liking the intent Adam right away, however, upon meetin g Cathy, he felt an ominous chill of calamity. After delivering her twin boys, Cathy desperately tried to leave Adam, and when he restrained her, she brutally shot him in the shoulder and departed. While sprawled on the floor, soaking in a pool of his own blood, Adam faintly heard quot;the monotonous sound that had been there all along . . . the cry of the twins, wanting their dinner. He had forgotten to feed themquot; (266). The next time Samuel Hamilton dropped by the Trasks place, he was appalled to discover that Adam had not named the twins yet. Referring to the Bible belonging to his devout wife, Samuel and Adam arrived at the names Caleb and Aron. Ten years later, when an elderly Samuel Hamilton stopped by to say goodbye to Adam and his family, Lee, the Trasks learned servant, told Samuel of an interesting topic that had stimulated him. Since their conversation ten years earlier, Lee researched the Bible story of Cain speaking to the Lord, and found it intriguing that the Hebr ew word to describe the lesson was timshel, meaning thou mayest. Therefore, instead of the Lord ordering men to triumph overShow MoreRelatedSimon Allusion Essay954 Words   |  4 Pages In the novel, Lord of the Flies, by William Golding, there is an allusion that predominates in the work. Simon portrays this allusion to the Bible in the novel and sustains this allusion through his words and actions. Simon sacrifices his life for others. For example, Simon puts the needs of others before his own by always being there to help. He accepts his fate and ends up dying for the other boys. Simon portrays the allusion of Christ in the novel. Simon’s actions in Lord of the Flies demonstrateRead MoreJohn Donne Poetry Analysis2693 Words   |  11 Pagesand the spiritual and holy nature. 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Eliot, â€Å"The Love Song of J. Alfred Prufrock†, â€Å"Journey of the Magi† 2. Poems for individual reading: 1. William Shakespeare Sonnet 73 (â€Å"That time of year†¦Ã¢â‚¬ ) 2. John Donne, â€Å"Holy Sonnet I† (â€Å"Thou hast made me†¦Ã¢â‚¬ ), â€Å"Holy Sonnet IX† (â€Å"If poisonous minerals†¦Ã¢â‚¬ ), 3. George Herbert, â€Å"Easter†, â€Å"Denial†, â€Å"Paradise† 4. Andrew Marvell, â€Å"On a Drop of Dew† 5. Richard Crashaw, â€Å"On the Wounds of our Crucified Lord† 6. Gerard Manley Hopkins, â€Å"Spring† Drama: Read MoreEssay on Romanticism4035 Words   |  17 Pagesthe symbolic characters/personality facets of the Editors Narrative are not reconciled results in the destructively fragmented personality we see. Hogg concentrates the wide metaphysical concern of corporeal/carnal/secular vs. spiritual/magical/holy into one character. Fragments of the complete human personality are emblematised in surrounding characters like George and the Laird during the editors resoundingly rationalist introduction. Yet the actual Confessions, by dint of their subjectiveRead MoreRastafarian79520 Words   |  319 PagesRastafarian church, temple, or worship space exists. 8. There are numerous sects and groupings of Rastafarians, each holding to its own belief system and structure. 9. Rastafarianism is a deeply patriarchal religion that remains completely behoven to the Bible. 10. For the Rasta, the land mass of Africa, one of the poorest continents on earth, is the promised land. 11. Finally, Rastas seem to harbor a great deal of anger against white people, and yet the religion is accepted and popular among some whiteRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagespart of regendering the twentiethcentury Western nation in the face of women’s strength in taking the place of men as breadwinners and family caretakers. Men’s role as soldiers was simultaneously made sacred, and those who died were sanctified as holy warriors. Whereas men had been virtuous citizen-soldiers during the Enlightenment and the founding period of modern nation-states in the eighteenth and nineteenth centuries, World War I sanctified the nation’s wars as well as those who fought inRead MoreExploring Corporate Strategy - Case164366 Words   |  658 Pagesconsistently high levels of RD spending and productivity became industry leaders. For this reason, stock market valuations place as much importance on the RD ‘pipeline’ (that is, the products in development) as on the currently marketed products. The holy grail of pharmaceutical RD used to be the ‘blockbuster’. Like ‘killer applications’ in the software market, blockbuster drugs are genuine advances that achieve rapid, deep market penetration. Because of their superlative market performance, blockbusters