This document discusses differences between Islamic and conventional banking. It provides information on Islamic banking restrictions, contracts used in Islamic banking, Islamic deposit products, and Islamic financing products. For Islamic deposit products, it describes wadi'ah yad dhamanah (safe custody) and mudharabah (profit and loss sharing) contracts. For financing products, it notes they are mostly based on trading transactions like buying and selling rather than interest-based lending. It also covers implications of being non-Shariah compliant and common mistakes in Islamic banking.

1. Produk Patuh Syariah

2. Differences BetweenDifferences Between IslamicIslamic & Conventional& Conventional
BankingBanking
Differences BetweenDifferences Between IslamicIslamic & Conventional& Conventional
BankingBanking
Islamic BankingIslamic Banking RestrictionsRestrictionsIslamic BankingIslamic Banking RestrictionsRestrictions
Contracts InContracts In IslamicIslamic BankingBankingContracts InContracts In IslamicIslamic BankingBanking
IslamicIslamic Deposit ProductDeposit ProductIslamicIslamic Deposit ProductDeposit Product
IslamicIslamic Financing ProductFinancing ProductIslamicIslamic Financing ProductFinancing Product
Implication ofImplication of NonNon ShariahShariah CompliantCompliantImplication ofImplication of NonNon ShariahShariah CompliantCompliant
Most CommonMost Common Mistakes !Mistakes !Most CommonMost Common Mistakes !Mistakes !
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22
33
44
55
66
77

3. Differences BetweenDifferences Between IslamicIslamic & Conventional& Conventional
BankingBanking
Differences BetweenDifferences Between IslamicIslamic & Conventional& Conventional
BankingBanking
Islamic Banking RestrictionsIslamic Banking Restrictions
Contracts In Islamic BankingContracts In Islamic Banking
Islamic Deposit ProductIslamic Deposit Product
Islamic Financing ProductIslamic Financing Product
Implication of Non Shariah CompliantImplication of Non Shariah Compliant
Most Common Mistakes !Most Common Mistakes !
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4. ISLAMIC & CONVENTIONALISLAMIC & CONVENTIONAL
BANKINGBANKING
ISLAMIC & CONVENTIONALISLAMIC & CONVENTIONAL
BANKINGBANKING

5. CONVENTIONALCONVENTIONALISLAMIC BANKINGISLAMIC BANKING
All business activities & products are in
compliance with Shariah law.
All business activities & products are in
compliance with Shariah law.
Business activities & products are not
based to any religious laws or
guidelines.
Business activities & products are not
based to any religious laws or
guidelines.
Islamic financing is mostly based on
principle of trading transaction
(buying & selling).
Islamic financing is mostly based on
principle of trading transaction
(buying & selling).
Financing is based on lending and
borrowing concept (interest based).
Financing is based on lending and
borrowing concept (interest based).
Underlying asset is a pre-requisite in a
valid transaction.
Underlying asset is a pre-requisite in a
valid transaction.
Underlying asset is not required.Underlying asset is not required.
Trading with element of gambling and
speculation is forbidden.
Trading with element of gambling and
speculation is forbidden.
Trading and dealing with any kind of
derivatives involving speculation is
allowed.
Trading and dealing with any kind of
derivatives involving speculation is
allowed.
Relation with its clients is between
buyer & seller, and also partner.
Relation with its clients is between
buyer & seller, and also partner.
Relation with its clients is between
creditor & debtor.
Relation with its clients is between
creditor & debtor.
ISLAMIC & CONVENTIONALISLAMIC & CONVENTIONAL
BANKINGBANKING

6. Differences Between Islamic &
Conventional Banking
Differences Between Islamic &
Conventional Banking
Islamic BankingIslamic Banking RestrictionsRestrictionsIslamic BankingIslamic Banking RestrictionsRestrictions
Contracts In Islamic BankingContracts In Islamic Banking
Islamic Deposit ProductIslamic Deposit Product
Islamic Financing ProductIslamic Financing Product
Implication of Non Shariah CompliantImplication of Non Shariah Compliant
Most Common Mistakes !Most Common Mistakes !
22

7. ISLAMIC BANKINGISLAMIC BANKING
RESTRICTIONRESTRICTION
ISLAMIC BANKINGISLAMIC BANKING
RESTRICTIONRESTRICTION

8. Uncertainty
X__________ ZulmZulm__________
RibaRiba __________Interest
Gambling Injustice
ISLAMIC BANKING RESTRICTIONSISLAMIC BANKING RESTRICTIONS

9. Differences Between Islamic &
Conventional Banking
Differences Between Islamic &
Conventional Banking
Islamic Banking RestrictionsIslamic Banking Restrictions
Contracts InContracts In IslamicIslamic BankingBankingContracts InContracts In IslamicIslamic BankingBanking
Islamic Deposit ProductIslamic Deposit Product
Islamic Financing ProductIslamic Financing Product
Implication of Non Shariah CompliantImplication of Non Shariah Compliant
Most Common Mistakes !Most Common Mistakes !
33

10. CONTRACTS IN ISLAMICCONTRACTS IN ISLAMIC
BANKINGBANKING
CONTRACTS IN ISLAMICCONTRACTS IN ISLAMIC
BANKINGBANKING

11. 3 Categories of Contracts in Islamic Banking3 Categories of Contracts in Islamic Banking
joint venture
Mudharabah cost plus sale
Bai’ Bithaman Ajil
Bai’ Inah
Bai’ Dayn
agency
CONTRACTS IN ISLAMIC BANKINGCONTRACTS IN ISLAMIC BANKING

12. Differences Between Islamic &
Conventional Banking
Differences Between Islamic &
Conventional Banking
Islamic Banking RestrictionsIslamic Banking Restrictions
Contracts In Islamic BankingContracts In Islamic Banking
IslamicIslamic Deposit ProductDeposit ProductIslamicIslamic Deposit ProductDeposit Product
Islamic Financing ProductIslamic Financing Product
Implication of Non Shariah CompliantImplication of Non Shariah Compliant
Most Common Mistakes !Most Common Mistakes !
44

13. ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

14. 2 TYPE OF CONTRACTS IN2 TYPE OF CONTRACTS IN
DEPOSIT PRODUCTDEPOSIT PRODUCT
ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

15. ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

16. 16
WADI’AH YAD DHAMANAH
(Guaranteed Safe Custody)
WADI’AH YAD DHAMANAH
(Guaranteed Safe Custody)
ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

17. ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

18. HIBAHHIBAH
1. A authorises B to safekeep his goods / money
A grants B to utilise the money
2. B utilize the money in business / project
3. All the profit earned belongs to B
4. B can give Hibah (gift) to A based on his discretion
AA
BB
1
3
2
PROFIT
100 %
WADI’AH YAD DHAMANAH
(Guaranteed Safe Custody)
WADI’AH YAD DHAMANAH
(Guaranteed Safe Custody)
4
BUSINESS
ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

19. CURRENT / SAVINGS ACCOUNT-i
WADI’AH YAD DHAMANAHWADI’AH YAD DHAMANAH
* Yellow indicate Shariah principle being applied
1. Customer deposit money with Bank for the purpose of safekeeping & convenience
Customer grants Bank to utilize the money
2. Bank utilize the money in investment / financing
3. All the profit generated belongs to Bank
4. Bank give Hibah (gift) to Customer as a token of appreciation based on its discretion
BANK
(Custodian)
CUSTOMER
(Owner of Fund)
HIBAHHIBAH
3 100 %
4
PROFIT
INVESTMENT
2
1
ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

20.  The banks safekeep the money and pays it back
to depositor in demand.
 Banks does not promise a fixed return, but has
discretion to provide depositors with hibah (gift).
 Banks is allowed to utilise the fund.
CURRENT / SAVINGS ACCOUNT-i
WADI’AH YAD DHAMANAHWADI’AH YAD DHAMANAH
ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

21. 21
MUDHARABAH
(Profit Sharing & Loss Bearing)
MUDHARABAH
(Profit Sharing & Loss Bearing)
ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

23. LOSS
1. A authorises B to invest his funds based on Mudharabah contract
2. B invests the fund in business / project
3. Profit will be shared between fund provider and entrepreneur /
Loss will be borne only by fund provider
AA
BB
MUDHARABAH
(Profit Sharing & Loss Bearing)
MUDHARABAH
(Profit Sharing & Loss Bearing)
1 3
2
BUSINESS
PROFIT
Business
OutcomeX %
Y %
100%
ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

24. 1. Customer deposit money with Bank and authorises Bank to invest his funds with
agreed PSR (e.g 30:70) based on Mudharabah contract
2. Bank invests the fund in investment or financing
3. Profit will be shared between Bank and Customer /
Loss will be borne only by Customer
BANK
(Entrepreneur)
CUSTOMER
(Capital Provider)
LOSS
1 3
2
INVESTMENT
PROFIT
Business
OutcomeX %
Y %
100%
CURRENT / SAVINGS ACCOUNT-i, GIA-i
MUDHARABAHMUDHARABAH
ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

26. Wadi’ah Yad Dhamanah Mudharabah
Saving Account-i, Current Account-i, Saving Account-i, Current Account-i,
General Investment Account-i
Safe custody purpose. Purpose of participating in the profits made
from the utilisation of the fund.
Between owner and custodian of the
goods.
Between capital owner and entrepreneur.
No guarantee of profit or return.
But bank may at it absolute discretion,
rewards the customer by giving hibah (gift).
No guarantee of profit or return.
Profits will be distributed in an agreed PSR,
i.e. 1:99.
Profits generated belongs to the bank. Profits distributed according to PSR.
Depositor (capital owner) bears all the
losses.
DIFFERENCES BETWEEN WADIAH AND MUDHARABAH
DIFFERENCES BETWEEN WADIAH AND MUDHARABAH
ISLAMIC DEPOSIT PRODUCTSISLAMIC DEPOSIT PRODUCTS

27. Differences Between Islamic &
Conventional Banking
Differences Between Islamic &
Conventional Banking
Islamic Banking RestrictionsIslamic Banking Restrictions
Contracts In Islamic BankingContracts In Islamic Banking
Islamic Deposit ProductIslamic Deposit Product
IslamicIslamic Financing ProductFinancing ProductIslamicIslamic Financing ProductFinancing Product
Implication of Non Shariah CompliantImplication of Non Shariah Compliant
Most Common Mistakes !Most Common Mistakes !
55

28. Q & AQ & A