Esssay

1. What is the major decision facing CCM? What is the timeline or sequence of events leading up to the decision? 2. What is your evaluation of the external environment, industry, and competition? 3. What is the position of CCM in the marketplace? What is your evaluation of the new product development† prototype and market testing† process used by CCM? 4. In light of the customers and their behavior, and your previous analysis, how would you position the U+ Pro skate in the marketplace? 5. What recommendations would you make to CCM regarding the execution of their launch strategy for the U+ Pro? Notes The major decision that CCM faces is one that involves the development of an effective product launch strategy which will boost the sales for the re-launch of CCM’s U+ Pro skate. This has been due to the fact that ‘a number of quality and marketing missteps had occurred since the market introduction of the U+ Pro skate two years earlier’. In addition to th is, the hockey equipment industry has been facing flat sales as of late. – Major decision †¢Skates make up the largest (34%) portion of global hockey equipment market by category, followed by sticks – Exhibit 2. †¢Key competitors are: Reebok-CCM Hockey, Bauer Hockey, Easton, and Graf. Competition in the industry †¢The industry was an expensive industry in comparison to other sport equipment industries like soccer. – Threat of substitutes high †¢The consumers of hockey equipment belong in mid-high income brackets, and spend quite a bit of money per annum for equipment. Hence, after they buy the equipment, they tend to stick to it and try to avoid repurchasing. – High power of buyers †¢Had variety of distribution channels within the industry. Among them the independent retailers had the best knowledge and tradition associated with selling hockey equipment.In addition, they are part of buying groups that spread across the country in Canada. †¢3 consumer segments: oPersonal Expression and Performance group (49%): concerned with image, product and personal performance, brand reputation and brand popularity. Want a brand that reflects style and personality. Price was not a barrier. Responds well to NHL endorsements. oSmart performers (45%): rational decision makers who consider both value and product performance when making a purchase. They want equipment to help them outperform the competition while staying within a budget. Didn’t care about NHL endorsements. oPrice Conscious Consumers (†¦

Compare Contrast Essay on the book Lizard

There are two types’ lovers-defeated lovers and victorious lovers. But the reality is there is neither victory nor defeat in love. Only permanent effort and loyalty is the basis of eternal love. Let me explain this with an example: The full moon is shining in the sky. It’s full-moon day. Seeing the beauty of the moon, a tempest rises in the ocean beneath. The ocean, in an effort to reach the moon, sends the roaring waves one after another. But alas, can the waves reach the moon, howsoever big they may be! Can the moon ever come down to the earth, whatever is the intensity of the wish! Seeing the plight of the ocean and the moon, a small twinkling star says to itself. Alas! I am but a little star. What can I do for the ocean and the moon? I shall only pray God–let the space in between the ocean and the moons unite them! –So, the waves continue to lash at the vacant space with the hope of reaching the moon. However, the reality is, the cosmos in which the moon and the ocean co-exist, is an integrated whole. So, what do the concepts like separation and distance mean? The ocean and the moon stand united as considered from a higher perspective. Their love stands fructified. You are the creator of your destiny related to your love-life, certainly not the victim. Love is to be lived and experienced in its trials, tribulations, duty and beauty and it is an import part of your self-discovery. Nevertheless, the ocean continues with its efforts to reach the moon. I have chosen the stories, â€Å"Newly Wed,† and â€Å"Lizard† for the purpose of this essay. The writings of Banana touch your heart and appeal to your emotions. Love is the subject that has enchanted and engulfed humanity since time immemorial. The mind-level problems related to love, either take you to the transcendental level, or to an emotional intrigue. For the desperate situation of the heart, one seeks desperate remedies. In the confused state of mind, one surrenders to magic-for example, the enigmatic healer Lizard. The sacred texts proclaim every action (good or bad) has a reaction and the intensity of the reaction is in proportion to the intensity of the action! Every thought, good or evil, is an action. Over this, there is no dispute between the spiritualists and the scientists. One of the rare agreements between the two contending forces; the two opposing forces! The forces that do not normally see eye to eye with each other! Love is not a homogenous force. The psychic circuit of each lover is different and special. The skill of the writer in the story Lizard is how the emotional complexities are tackled. Through the confusion, she strikes a reassuring clarity. Life hurts but her characters have the guts to accept that hurt with courage. In such situations they never tremble or tumble. They are able to find a solution through the medium of love coupled with spiritual solace. Lizard: This is a story from a male perspective. He calls his beloved a Lizard, for she has a small tattoo on her inner thigh. That the man has seen the tattoo in that part, speaks about the obvious relationship. The man is fascinated by the superlative talent the Lizard possesses. Some quotes to highlight her latent qualities and ingenuity: â€Å"I was reminded of her separateness, a being with different organs, bundled in a different sheath of skin, who has dreams at night that are nothing like my own.†Ã¢â‚¬â€the man explains how he sees the Lizard. â€Å"Her profile stood out in sharp relief against the white wall. She seemed like a creature of a different species, one who lives quietly in the dark†Ã¢â‚¬â€this is his observation about the Lizard. â€Å"Her every gesture, every move, brought life to me, a man who had been dormant for so long†.-the man shares his feelings how the Lizard has affected him. These are clearly the signs of man who is in deep love. Oh! Man-love once, before seeking liberation through spirituality! You are the part of the never ending long story through the ages-it is between him and her! The central character of the story is a doctor, who works with children who are emotionally disturbed.   Ã‚  He loves a young woman in whose reptile eyes â€Å"I see my own lonely face, peering down, looking for something to love and cherish. †As a child she had a bitter experience of witnessing a brutal attack. Rightly she becomes an acupuncture practitioner now dedicated to healing those in acute pain. But she can never forget her past. Her love tells her a similar experience, which reduces her mental anguish. He offers her the psychological support; otherwise she is a tough woman. Newlywed: This story has a strange history. It was serialized on posters on the railways around Japan. It makes the issue interesting.   It is about a strange woman that a newly married man meets in the train. This is also a story written from a male perspective. The man’s encounter on a train with a stranger who reveals to him a universal life force that encompasses even â€Å"the slight feeling of alienation he experiences in his marriage â€Å" That young man is reluctantly returning home on the subway to his new and frightening role as husband! Along the way, he meets a mysterious stranger who shows him that the role he has chosen is a positive one. â€Å"The prose is as clean and smooth as a lacquered teacup,† Geraldine Sherman claimed in the Toronto Globe and Mail, speaking about the quality of writing of Banana. That drunken man, discontented, on his way home sits fixed to his subway seat. He doesn’t wish to return to his silly and troublesome wife.   He's joined by a familiar Japanese character, The Trickster, an old man who transforms himself into a beautiful, wise woman â€Å"smelling like the scent of a place, before I was born, where all the primal emotions, love and hate, blended in the air.† This mysterious fellow-traveler understands the narrator's innermost thoughts and gives him the courage to carry out his duties. The undercurrent of both the above stories is love. â€Å"They (the scientists) may cross the moon, beat the stars, but probe they must the mystery of my eve’s gaze.† â€Å"Marriage is like a fort. Those who are within, wish to come out. (Newly Wed) Those who are out, wish to get in.† (Lizard) In both the stories, the human emotions are tackled at heir best. Conclusion: Love woks through different layers of an individual’s personality. Its intensity changes with the time and circumstances. Banana has ably pictured this dominant human emotion, appropriate to the situation. ‘Loving’ situations are gift of the God to the one who is experiencing them. Let it be a beautiful experience- Banana propounds this love-philosophy in her unique style. She is a capable narrator many dimensions of love. ============

Building A Fence Around August English Literature Essay

Building A Fence Around August English Literature Essay Family life of the 1950’s was different from any other time in America’s history. Many soldiers returned home from war and married young, in hopes to create simpler lives for their families. For so many, this was the white American Dream. For African Americans, this dream was much harder to attain. For Troy Maxson, the tragic hero in August Wilson’s Fences, this was no exception. In her essay, â€Å"Baseball as History and Myth in August Wilson’s Fences† Susan Koprince notes that for Troy, â€Å"the American dreamà ¢Ã¢â€š ¬Ã‚ ¦turned into a prolonged nightmare† (1104). Racism, segregation, and poverty ran amuck and many blacks found it difficult to find success in this white man’s world. However, at the heart of all of Wilson’s classic and timeless works, are what he refers to as â€Å"the Big Themes†, â€Å"love, honor, duty, [and] betrayal† (Miles, 1096). These universal themes are integral and allow readers to understand the plight that black families in the fifties had to endure, in order to get by. Troy Maxson, above all else, takes to heart his duties as a sole provider for his family. However, Troy often finds himself torn between a desire for more personal liberties in his own life and a sense of commitment to care for his family. These duties to his family are not without fault. Although Troy is a wonderful financial provider for the family, he still feels he does not need to show affection to any of his children. This rings particularly true for his youngest son, Cory. While they work to erect a fence around their yard, Cory asks his father, â€Å"‘How come you ain’t never liked me?'† Troy, furious at this inquiry, tells Cory, â€Å"‘it’s my duty to take care of you. I owe a responsibility to youà ¢Ã¢â€š ¬Ã‚ ¦Not cause I like you! Cause you my son'† (Wilson, 1049-50). As breadwinner for the family, Troy necessitates himself to deliver food and shelter, but he makes it clear to Cory, as sole provider, that is all he is required to give. Furthermore, Troy’s remarks show readers just how defeated he is of the never-ending task of caring for his family. Troy, however, is not the only member of the household that has an obligation to the family. After Troy confesses to Rose about his affair and the child that Alberta is carrying, Rose chides, â€Å"‘I gave everything I had to try and erase the doubt that you wasn’t the finest man in the world†¦Cause you was my husband'† (1067). These remarks allow readers to grasp the role Rose undertakes as Troy’s loving and faithful wife. Harry J. Elam Jr. notes in his essay, â€Å"August Wilson† that, â€Å"Troy’s adulteryà ¢Ã¢â€š ¬Ã‚ ¦ propels Rose, to reassess her situation, to gain a greater self-awareness, to change (1102). Rose is a powerful representative of steadfast loyalty; she remains committed to Troy and her duties to hi m, despite his unfaithfulness to her. Even as she undertakes the role of caring for Troy’s lovechild, Rose evokes a powerful sense of sympathy from readers. Despite the infidelity, Rose decides to stay with Troy for the sake of the family. This act additionally solidifies her duty as a wife and mother. In the argument with Rose, following his confession, Troy exclaims that he has spent his whole life trying to live a â€Å"‘decent†¦cleanà ¢Ã¢â€š ¬Ã‚ ¦hardà ¢Ã¢â€š ¬Ã‚ ¦useful life'† (Wilson, 1066). This remark illustrates how Troy has always been the provider of the home they shared for many years, even though the affair may have only recently started. It appears to readers that through this comment, Troy justifies his own reasons for the infidelity. In his essay â€Å"Fiery Fences,† Clive Barnes remarks how Troy eventually â€Å"sees himself as a man fenced in with responsibilities† (1085). Ironically, the fence Troy erects around his home, i mprisons him from achieving the independence he so desperately craves.

Evaluating the impact of CSR on consumer buying behaviour, An Essay

Evaluating the impact of CSR on consumer buying behaviour, An empirical study from the UK consumer, and company perspective - Essay Example any develops and the more that it increases in size, the more does it become visible to the public’s consciousness and the more that it is expected to be responsible for its business processes and the impact of such processes on society (Daub & Ergenzinger, 2006). Corporate social responsibility is something that is focused on doing not only what is right but what is fair, while at the same time, avoiding causing harm. It can therefore be perceived as a manner with which a company regulated its activities (Moir, 2001). Corporate sustainability on the other hand, refers to the sustainable development and the ability of a company to generate performance for the long-term, in order to make sure that the company survives amidst its competition (Munilla & Miles, 2005). However, in order to make sure that corporate sustainability is possible, it is important that the company makes sure that they meet the needs and expectations of their stakeholders, while they also seek to protect, support and enhance the resources acquired from human labour and the natural resources that are needed by the entire community in future years (Strategic Direction, 2008). According to Van der Putten (2005), the stakeholder theory is one that has brought about the importance of corporate social responsibility or CSR among business organizations. Based in this theory, companies do not only have a responsibility towards the society within which they hold their operations, but also their shareholders, their employees, their consumers, their suppliers and their local communities (Vogel, 2005). In this context, it is the responsibility of any company to make sure that they are able to give something back to the entire community and the environment, both of which have helped them to become successful, or continues to contribute to their success (Bronn & Vrioni, 2001). The implementation and the continuation of corporate social responsibility among business organizations actually ‘constitutes

Issues associated with Environmental regulatory control for ship Essay

Issues associated with Environmental regulatory control for ship operators - Essay Example e effectiveness of the implementation of the cleaner environmental ship operation practices and the adoption of greener technologies will by far be influenced by a well economically-quantified environmental impact, of the shipping activities (Pandya, 2002:44). Despite the fact that the shipping industry in the modern day operates under a very complex environmental regulatory framework comprising of both domestic and international regulations, the industry has still lagged behind in effective environmental regulatory frameworks (Nyhus, 2012:85). The traditional establishment of the regulatory framework has been in a more reactive than proactive manner, where the regulations are formulated based on events and other circumstances that arise outside the industry necessitating some form of regulatory control on the shipping operations (Nyhus, 2012:85). However, the increased focus on the local and international environmental issues has resulted to a more proactive shipping operations regulation, to reduce the burden of pollution that is shipping on the environment. Shipping is regarded as the fastest growing source of greenhouse gas emission into the environment, as well as producing other emissions that are affecting the human health (Mitchell, 2001:72). The emissions from ships are known to cause major human illnesses such as cancer and a range of respiratory diseases. In addition, considering that the emissions from the ships is comprised of gaseous substances and even elements of heavy metal, the emissions from the ships has been found to be impacting negatively on the climate and the environment, through causing acid rain and eutrophication (Clarkson, 2011:7). The major problem in regard to the increasing environmental pollution by the ships emanate from the fact that the environmental effects of emissions were eliminated in the Kyoto protocol together with the aviation emissions. This made these sectors lag behind in the establishment of the comprehensive and

What Were the Consequences of the Enron Scandal Case Study

What Were the Consequences of the Enron Scandal - Case Study Example This case study represents a bold attempt to answer the question stated in the work's title: What Were the Consequences of the Enron Scandal? Enron, â€Å"a provider of products and services related to natural gas, electricity and communications to wholesale and retail costumers† represented one of the largest fraud scandals in history. As a result of the fraud investigations, the company was forced to file for bankruptcy in December 2001. While the bankruptcy of a small company is taken as a routine, Enron’s case is different as the company was ranked seventh by Fortune 500. During the 1990s, Enron expended quickly into several areas such as developing a power plant and a pipeline. This expansion, however, required large initial capital investments and long gestation period. By that time, Enron already raised a lot of debt funds from the market and hence any other attempt to raise funds would affect Enron’s credit rating. But Enron had to maintain the credit ranking at investment rate in order to continue business. On top of that, the company wasn’t making enough profits either, as it promised to investors. Hence, Enron began making partnerships and other special â€Å"arrangements† (Special Purpose Entity, or SPE). These companies were used to keep Enron’s debts and losses away from its balance sheets, therefore allowing it have a good credit rating and look good in front of the investors. Figure 1 How SPEs worked Adapted from Chary, VRK. (2004). Ethics in Accounting. Global Cases and Experiences. Punjagutta. The ICFAI University Pres., India, pg. 115 -$ millions- Year 1997 1998 1999 2000 Revenues 20,273 31,260 40,112 100,789 Total assets 22,552 29,350 33,381 65,503 Long Term Debt 6,254 7,357 7,151 8,550 Shareholder's Funds 5,618 7,048 9,570 11,470 Table 1 Enron's Financial Highlights Adapted from Chary, VR. ((2004). Ethics in Accounting. Global Cases and Experiences. Punjagutt., The ICFAI University Press. India. pg. 119 Enron's goal was to bypass the rules of consolidation and still increase credibility. If a parent company (in this case Enron) financed less than 97% of an initial investment in a SPE, it didn't have to consolidate in into its own accounts. If properly done, the legal isolation and the third party control over the SPE, reduce the risk of the credit. Therefore, off-balance sheet treatment of such a SPE involves enough third party equity. The third party's equity must be "at risk", otherwise the transferor would be required to consolidate the SPE into its own financial statements. Up to end of 2000, no one pointed fingers at Enron. For 2000, the corporation reported $101 billion revenue and the auditors gave a clean report. But, at this stage, Enron announced its intention that during the third quarter of 2001, it would book a loss of $1.01 billion and, at the same time, reducing shareholders' funds by $1.2 billion as a result of correcting accounting errors in the past. After a long trial, Andrew Fastow, the former Enron finance executive has been sentenced to six years in prison. Fastow pleaded guilty for fraud and money laundering in 2004 and also became the chief whiteness in the trial against Jeffrey Skilling and Ken Lay. His testimony helped convict Lay (who died in July 2006 after a heart-attack) and Skilling, who was sentenced to 24 years in jail. In May 2006, the latter was found guilty on 19 counts of conspiracy, fraud and inside trading over Enron scandal. Skilling was found to have orchestrated a series of deals and financial scheme which later

Nuclear Medicine Essay Example | Topics and Well Written Essays - 500 words

Nuclear Medicine - Essay Example Preparation of patient mostly is dependent on the type of procedure that will be performed. Allergy must be checked for radioactive tracer material used. Some of the procedures such as a bone scan do not need intensive patient preparation, but some require. A good example is thyroid body scan. When a patient is being prepared for thyroid test he or she should be instructed to speak with the technologist directly before the procedure is undertaken. The patient should be instructed to stop all thyroid medication since they may be falsely detected as a pathology with the machine. Before stopping the medication, they should seek clarification from the doctor. The patients sometimes are instructed to fast for two hours for the effectiveness of the nuclear medicine procedure (Chia-Ho, 2014). Nuclear medicine has many advantages. One is the advantage painless and less not invasive. It can help to diagnose, treat even predict the outcome of a wide range of condition without causing a lot of trauma to the patient. It helps to detect pathology within the body at the early time that in turn can help control the condition ahead of time. Nuclear medicine can also help to check how well the cancers are responding to therapy. Nuclear medicines also have a share of disadvantages and limitation. It involves exposure to ionizing radiation that can cause mutation if they are in huge doses. Some of the radioactive tracer materials injected into bodies have an allergic reaction that can be very detrimental. Hence, it is necessary to test for the presence of allergy with radioactive tracer material before nuclear medicine procedure is commenced. A time sedation may be needed because nuclear medicine procedure a time make patient feels claustrophobic (Mititelu, 2014) Most of the ailments that are diagnosed and treated with nuclear medicine are internal. This ailment will otherwise require a surgical procedure to be done for the diagnosis or therapeutic procedure to be done.

Green Computing- Annotated Bibliography Example | Topics and Well Written Essays - 1000 words

Green Computing- - Annotated Bibliography Example IT is also used in increasing the energy efficiency of buildings, supply chains, transportation systems, and electrical grids. In addition, the production and use of computers is growing fast in the consumption of global energy and greenhouse gas emissions. This article talks about sustainable IT services and also assesses the effects of green computing practices. The article defines green computing as the practice of efficiently using computing resources while increasing or maintaining their overall performance. The article asserts that sustainable IT services needs the integration of practices of green computing such as virtualization, power management, improving cooling technology, electronic waste disposal, recycling, and optimization of the IT infrastructure in order to meet sustainability requirements. According to the author, recent studies show that power costs utilized by departments of IT approaches 50% of the total organizational energy costs. This paper provides a literature review on sustainable IT and identifies a set of principles that guide sustainable IT service design. This paper addresses the challenges of environmental design for computing systems. The paper argues that pervasive computing do not only provide exciting research challenges and tremendous opportunities, but also negative environmental impacts, especially in terms of energy consumption and physical waste. The paper also asserts that environmental impacts come under consumer scrutiny and increasing government. Just like the rest of the disciplines (e.g. architecture, transportation), pervasive computing adapt accordingly. The paper also discusses specific research questions and issues arising from three phases of lifecycle device: maximizing device lifetime, improving recyclability, and minimizing resource usage for manufacture and operation. This paper addresses green

Retailing Assignment Example | Topics and Well Written Essays - 750 words

Retailing - Assignment Example The responsive nature of the store representatives also added to the shopping experience although the retailer could do more with the displays and other equipment to provide a more engaging shopping experience to its consumers. 2. Retail strategy is a combination of the retail mix and the external environment. The chosen retailer had a department store particularly targeting towards its traditional as well as its well-informed consumers that are aware of the trends. With the ambience of the store, it was evident that the store was equally welcoming to any new and existing customers, thereby especially focusing their product mix at the traditional and well informed market segment. A key strength for the store was its helpful staff that could win consumers by being attentive to their problems and to respond to them in helping ways. However, the amount of technical equipment to keep the customers entertained were lacking although this could help the store attain a sustainable competitive advantage by maintaining customer loyalty. 3. The stores of our chosen retailer are located in a clean local neighborhood with minimal obstructions along the way to the store. The road patterns are steady and clear that add comfort to the journey to the store. The roads and footpath outside the store appears quite decent although improvements could be made. The inviting window display was attractive and visible so that consumers could figure out the location of the store. The surrounding area was also well planned although there was room for improvement. The parking lot was located near the store and a pathway lead customers to the store. The space in the parking lot was enough to accommodate an ample amount of cars although some peak seasons may experience traffic and congestion. Overall, the store had relatively easy accessibility with smoothly flowing traffic nearby, and easy

A Health Advocacy Campaign for Childhood Obesity Research Paper

A Health Advocacy Campaign for Childhood Obesity - Research Paper Example Aa a form of health prevention and nursing intervention strategy, the health advocacy campaign can be defined as the method of winning political assurance of supporting a particular health care program (Chapman, 2004; Christoffel, 2000). In most cases, the target audiences for a health advocacy campaign include not only the policy makers but also the small group of people who has the power to make decisions and can influence certain actions that can affect positive changes for the people (Hoover, 2012; Wallack, 2000, pp. 337 – 365). Considering the long-term health consequences of childhood obesity, this report will not only discuss the importance of developing effective health advocacy campaign against childhood obsity but also conduct an actual advocay campaign that will assist the nurses in winning the support of the government. Therefore, the actual report will be divided under three (3) major sections known as: (1) health advocacy campaign for obesity; (2) the legal consi derations behind the development of a health advocacy campaign for obesity; and (3) the ethical considerations behind the development of a health advocacy campaign for obesity. ... To help these children avoid the long-term negative physiological and social consequences of childhood obesity, the main goal of the proposed advocacy campaign program is to encourage the political people to support the health promotion campaign against childhood obesity. Description of the Selected Population and Their Health Issues The target population for this particular health advocacy campaign program includes the obese children between the ages of 6 to 19 years old. In general, obesity is considered as a serious health problem because it can lead to negative effects related to a person’s physical health, emotional well-being, and psychosocial functioning (Tuthill et al., 2006; Linde et al., 2004; Goodman & Whitaker, 2002). Obese people can sometimes be strongly discriminated in academic and work environment. As part of not being socially accepted, people who extremely over weight would normally to go through a series of depression, low quality of life, and low levels of self-esteem (Frisco, Houle, & Martin, 2010; Kolotkin et al., 1995). With regards to being socially discriminated in academic and work environment, Viner and Cole (2005) explained that obese children who were able to successfully manage having a normal weight at the time they reach adulthood are less likely to become discriminated at work and in public areas whereas obese children who remained extremely overweight during their adulthood age are the ones who are highly affected by having poorer employment opportunities and negative social relationship outcomes. Aside from experiencing work and healthcare discrimination, the study of Carr and Friedman (2005) revealed that obese individuals are prone to interpersonal mistreatment and lower levels of self-acceptance purely

The evangelist included the signs in order to make people believe Essay Example for Free

The evangelist included the signs in order to make people believe Essay There is much speculation from scholars as to why John chose to include the signs, which are unique to the fourth gospel. Broadly speaking, there are two main views. The first is that the signs were intended purely to be accurate accounts of Jesus miracles, featuring historically and topographically factual details. The second, and perhaps more widely held, is that John had an evangelistic purpose in mind when he wrote the signs: he wanted to make his readers believe. John chooses to use the word semeia, meaning signs, rather than the dunameis (mighty act, used in the synoptics) to denote the miracles that Jesus performs. Whereas act is a word firmly rooted in a particular place and timeframe, the word sign evokes the idea of the miracles pointing to something else, or foretelling a future event. It implies a greater role and purpose to Jesus miracles than the acts themselves, a divine scheme, thus helping the reader see the link between Jesus (who looks like an ordinary person) and the Father. Johns choice of words alone suggests he wanted the signs to be seen by the reader in a theological light, not an historical one. In fact, John explicitly says of the signs: These are written that you may believe that Jesus is the Christ, the Son of God, and that by believing you may have life in his name. (John 20:31) Tasker mentions that some scholars in the past believed this statement to be a later addition to the gospel, by a later author or redactor. However, since there is no evidence for this, it is necessary to assume that the original author of Johns gospel wrote the statement themselves. For this reason, it cannot be denied that one of, if not the, main purpose of the signs is to fulfil an evangelistic role. Some might argue that there are parts of the signs that seem to contradict this purpose. For example, neither the third or fourth sign ends with true faith from those involved. In the third sign, the Healing at the Pool, the crippled man does not embrace Christs teachings but instead goes straight to the Jewish authorities, and even tries to shift blame onto Jesus for disregarding the rules of the Sabbath. At the end of the fourth sign, the Feeding of the 5,000, the crowd tries to make Jesus king by force. They do not understand that, as Sanders and Mastin put it, Jesus was a king, buthis kinship was not of this world. Both signs three and four end in the same way: with Jesus quietly leaving the scene, because he has failed to inspire people to faith as he had hoped. Although these signs do result in negative outcomes, they are quite possibly a tool John has deliberately employed to help his readers understand the nature of faith. By giving clear examples of people not recognising Christ as the Messiah, either by falling back on the comfortable familiarity of Judaism (as did the crippled man) or misunderstanding the nature of Jesus authority (like the crowd that were fed), the reader is better able to understand what it means to believe. They can also empathise with Jesus frustration at the fact that he is not producing the effect he intended, even having performed great miracles before peoples eyes, and so begin to know Jesus as a person as well as his divinity. Another objection to the statement in the title is that John includes many details that seem to serve no other purpose than to document the particulars of the sign. For example, in the third sign, there is mention of the Sheep Gate at the Pool in Bethsaida, the five stone colonnades and the fact that the man in question had been crippled for 38 years. However, these are not necessarily included by John for the sake of being historically and topographically accurate. Some details could be symbolic. For example, Marsh suggests that the 38 years could be a deliberate parallel to the 40 days that Moses spent wandering the desert. This parallel might be intended as a subtle message to the reader that Christ has fulfilled Judaism, making it good, just as Jesus makes the crippled man better in the sign. The details that John includes in the signs may also be a way of validating them and convincing the reader that Jesus miracles did take place. It seems that the title claim is justified, and that Johns main purpose for the signs was in fact to make his readers believe. Not only is it explicitly stated in John 20:31, but there is evidence for it throughout the signs. Whilst it appears at first that the gospel being a theological piece of writing and it being an accurate account are mutually exclusive, the two attributes do overlap. As Marsh notes, the historical and topographical details in John often give rise to symbolism and provoke theological thought, and can be just as important as the fictitious component of the signs in encouraging faith in the reader.

Project Timeline and Minutes of Meeting Essay Example for Free

Project Timeline and Minutes of Meeting Essay No ContentRemark Week 2 Planning the project 5 % Preliminary model selection 5 % Week 3Brainstorm and Gathering information20 % Week 4Final model section 10 % Week 5Implementation 35 % Week 6Writing the report 25 % Minutes of meeting 1 Date: Wednesday 12th September 2012 Time 7:00 pm – 7:30 pm Venue: Cafeteria North-wing Campus UCSI University Chaired by: Group leader â€Å" Samir â€Å" Attendance: †¢Samir Mohamoud â€Å"Group leader†. †¢Ahmed Abakar Ahmed Ibrahim †¢Abdul-Salam Bakar †¢Omer Mohammed †¢Khalid Matter discussed: 1-Getting to know each other: Everyone introduced himself ?Providing means of communication (phone number, email and Facebook) 2-Project: ?Rough reading through the project ?Define project objective ?Project time frame ?Estimate project completion â€Å"15th October 2012† 3-Next Meeting: ?Saturday 15th September 12 pm at Ahmed’s apartment. Prepared by Ahmed Minutes of meeting 2: Date: Saturday 15th September 2012 Time12:00 pm – 2:30 pm Venue: Ahmed’s Apartment Chaired by: Group leader â€Å" Samir â€Å" Attendance: †¢Samir Mohamoud â€Å"Group leader†. †¢Ahmed Abakar Ahmed Ibrahim †¢Abdul-Salam Bakar Omer Mohammed †¢Khalid Matter discussed: 1-Project: ?Break down the project into smaller tasks ?Assign each member for specific task ?Discussed each task in detail 2-Model: ?Brainstorm a design for the model ?Hand draw the design ?Identify the model component 3-Next Meeting: ?Saturday 22nd September 1 pm – 2 pm at Sameer’s apartment Prepared by Ahmed Minutes of meeting 3: Postponed to 26th September due to tests Minute of meeting 4: Date: 26th September 2012 Time4:20 pm – 5:55 pm Venue: K207 North-wing Camps UCSI university Chaired by: Group leader â€Å" Samir â€Å" Attendance: †¢Samir Mohamoud â€Å"Group leader†. †¢Ahmed Abakar Ahmed Ibrahim †¢Abdul-Salam Bakar †¢Omer Mohammed †¢Khalid Matter discussed: 1-Project ?Each member discussed and showed progress on assigned task 2-Model ?Members brought new design for the model ?Estimate the components cost ?Set the model implementation date â€Å" Saturday 29th September† 3-Next meeting ?Saturday 29th September 11:00 am at Samir’s apartment Prepared by Ahmed Minute of meeting 5: Date: 29th September 2012 Time11:00 am – 4:00 pm Venue: Samir’s Apartment Chaired by: Group leader â€Å" Samir â€Å" Attendance: †¢Samir Mohamoud â€Å"Group leader†. †¢Ahmed Abakar Ahmed Ibrahim †¢Abdul-Salam Bakar †¢Omer Mohammed †¢Khalid Matter discussed: 1-Model ?Update and adjust the model design â€Å"add remove some features†. ?Sketch the new model ?Re-estimate the cost of the new model 2-Implementation: ?Purchased the desired components. ?Few components were not available in market â€Å"Wooden Mousetrap†. ?Decision made on the spot and agreed by all members to change the wooden mousetrap with a metal one to keep the project flow. ?Started fixing the component together 90% completion of model 3-Next meeting ?Sunday 7th October11:00 pm at Samir’s apartment Prepared by Ahmed Minute of meeting 6: Date: 7th October 8, 2012 Time2:00 am – 5:00 pm Venue: Samir’s Apartment Chaired by: Group leader â€Å" Samir â€Å" Attendance: †¢Samir Mohamoud â€Å"Group leader†. †¢Ahmed Abakar Ahmed Ibrahim †¢Abdul-Salam Bakar †¢Omer Mohammed †¢Khalid Matter discussed: 1-Implementation ?Complete the implementation ?Run the model for its first time. ?Rerun the model to make sure is working properly. ?Test the model for the specified purposes ?The model showed success

Impact of Islamic Banking on Consumer Financing Sector

Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the Impact of Islamic Banking on Consumer Financing Sector Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the