Describe the various aspect of Islamic Banking.

1. A.    Introduction: the traditional Banking is the business activity, which involves acceptance and safeguarding of money owned by other individuals or entities, and then lending out this money in order to earn profit. On the other hand, Islamic Finance which has been emerging from the 70s and developed in accordance to the shariah laws to facilitate the needs of the Muslims governments, businesses, individuals in fulfilling their needs such as acquiring shelters, education and financing business to satisfying wants. The Islamic banking is getting recognition worldwide with institutions operating under the close supervision of the shariah advisors with varieties of products mostly duplicated from the conventional banks. The Islamic banking structure is bizarrely facing gigantic contest by the Islamic banking sector all over the world as well as from the well-known International commercial banks that hold out services and products of IB.
2. B.     History: Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. Islamic law, followed by many nations in the Middle East and many nations in Central Asia,and Africa, as well as Indonesia, is based on a religious or theocratic view of the law. It traces its authority on the dictates of God (Allah), scripture, the Sunnah, or the prophetic utterances and practices of the prophet Muhammad, and interpretations of prominent scholars. Islamic law is both religious and philosophically based. Islamic law is equated with Shari’a[1] or God’s law and is based extensively on the Koran (Quran). Islamic law not only dictates personal conduct but also determines conduct in a commercial setting. For example, in Islamic banking or other commercial undertakings, Shari’a boards may assess the religious acceptability of transactions, activities, contracts, or plans. There are two great principles applicable to the business environment:

• It is an individual’s absolute duty to honor all agreements entered into; and
• Parties must observe “good faith” in all commercial dealings.

In the context of the business-legal environment, there are a few interesting concepts that need some explanation in order to understand Islamic law:

• Halal: This is a practice that is “permitted” under Islamic Law.
• Harram: This is a practice that is “forbidden” under Islamic law.
• Riba (literally, interest): a principle of Islamic law that prohibits unearned or unjustified profits in the form of interest in a commercial transaction. Specifically, the Koran warns that money should not be “created from money.” Islamic law, however, does permit a bank to engage in “project financing” or other forms of “project participation” that do not result strictly in the earning of interest as would be the practice in Western banking.
• Gharar: prohibits any gain that is not clearly outlined or defined at the time of the ‘making of the contract’.

Sharia; (The Quran, Surah 2, Virse 275)[2] prohibits the payment or acceptance of interest fees for loans of money (Riba, usury), for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles (Haraam) forbidden (BOT, 2009). The idea of Islamic banking goes back to as early as the 7th century, but it was commercially implemented only in the last century (De Jonge, 1996). As the end of the colonial era approached, some of the newly formed and independent Muslim states reassessed their economic policies based on Shariah principles. This marked the beginning of the present-day revival of Islamic finance.

Small scale limited scope interest-free institutions were unsuccessfully tried in the mid-1940s in Malaysia and1950s in Pakistan (Gafoor, 1996). From 1946 onwards, research by Muslim scholars gradually produced principles for banking practices that were likely to be acceptable to the banking and Islamic communities. The first successful application of Islamic finance was undertaken in 1963 by Egypt’s Mit Ghamr Savings Bank, which earned its income from profit-sharing investments rather than from interest. By the 1970s, the push for Islamic finance had gained momentum (Algaoud & Lewis, 2001).In 1973 the conference of foreign ministers of Muslim countries decided to establish the Islamic Development Bank with the aim of fostering economic development and social progress of Muslim countries in accordance with the principles of Shariah.

This marked the first major collective step taken by Muslim countries to promote Islamic finance (Saeed, 1996).At this moment there are over 300 Islamic financial institutions in more than 75 countries managing funds over $500 billion in assets. Furthermore, over the last decade, the Islamic banking industry experienced a growth of 15-20% per annum (Bose & McGee 2008).These institutions are not only operating in the Muslim countries but as well in other countries where Muslims are a minority, for example, in the United States, Great-Britain,Australia, China and France. Furthermore the Islamic banking products are not solelyused by Muslims but as well by people with other religious backgrounds[3].

1. C.    How the Islamic Banking can be seen as “normal”? Based on history and theoretical framework we can see that Islamic banking and financial system is quite opposite of the customary system that we see in everyday life. So the basic question arises how then are normal commercial transactions carried out in Islamic nations. How does the legal system conduct itself in a manner that would be considered “normal” in the western world?[4]

The Islamic financial-legal system employs the basic concept of participation in creating an enterprise, utilizing funds at-risk on a profit-and-loss-sharing basis. The purpose of the participation model is to reduce, as far as possible, speculative risks through the implementation of a “careful investment policy, diversification of risk, and prudent management by Islamic financial institutions.”[5]

• Ijara: Islamic project financiers purchase the assets of a business and then lease them back to the project sponsor at a predetermined markup and on a deferred payment basis during the term of the lease. At the end of the lease, title to the assets passes to the project sponsor.
• Murabaha: This is a typical “short-term” commercial finance agreement. A bank buys equipment, fuel or raw materials and sells them to the project manager at a predetermined markup and on a deferred payment basis.
• Modaraba: a partnership type arrangement where one party (the bank) contributes the financing and the other party provides assets such as property, equipment, or entrepreneurship (experience). Profit sharing is predetermined according to the agreement and losses are borne by the financier (bank).
• Musharaka: This is a typical joint-venture agreement where both parties contribute capital and share in the profits and losses in proportion to their investment (similar to a partnership).

1. D.    Comparison between Islamic banking and conventional banking system: Under capitalism, interest is the major driver in conventional banks operations although other valuable services such as guarantees, funds transfers, safety of wealth, and facilitation in global trade are also provided for reward and form substantial part of income. As the conventional banks are created beneath the ideology of capitalism and transect business by indicting interest, which is offensive (banned) in Islam. This modern commercial banking system is not interest free, which is against Sharia (Islamic law), hence for all the believers in Allah (God) to deal with these institutions does not appeal. Therefore, Muslims left with no option but to set up their individual financial establishments governed by Islamic laws and principles. Islamic financial system and banking has shown an incredible growth in last two decades.  By the end of December 2010, in more than 50 countries approximately 300 institutions are operational and handle funds of US$ 951 billion. Persian Gulf Area is the centre of Islamic finance with a share of 82% followed by South Asia and Fareast region 13% and balance from all over the world including Europe, North America and Africa (IFSL 2011)[6].

 In recent decades, the 15,000,000 Muslims in the European Union have become more and more interested in managing their fi nances by using fi nancial services that are in conformity with Sharia—Islamic law. Today there are more than 350 Islamic fi nancial institutions, all over the world, in some 75 countries[7] and the turnover of Islamic fi nancial services has been estimated as increasing some 10–15% or even 20% a year[8].

The Quran prohibits interest (riba)[9] as usury, which is condemned. As a consequence of condemning interest, the Islamic moral economy also prohibits a fixed return generated by interest. Therefore, capital cannot gain any fixed return by itself without any risks being borne. Vice versa, according to the Islamic moral economy, capital can increase by the means of economic activity and participation in the real economy rather than in the financial industry only. The Islamic moral economy involves the position that money does not have any inherent value and that it is important that the resources, real activity, and risk bearing be involved in any generation of any new resources. Thus, the principle of profit t- and loss-sharing between the parties, the participatory nature of economic and business activities, is the crucial element of Islamic financial instruments, which are aimed, inter alia, at avoiding concentration of the wealth in the hands of a small circle of persons and “expressis verbis” prohibiting enrichment by means of anything that is prohibited in Islam (alcohol, gambling, pork, etc.). Hence, although the religion prohibits interest, trading is allowed (the prophet Mohammed was a merchant himself) and profit as a return from business activities is allowed. The structures of partnerships in the Islamic financial structures provide that if a joint venture is successful, everybody involved will be entitled to a share in the profit t, according to the pre-agreed ratio. At the same time, where a joint venture is not successful, both parties bear the loss. Thus, the differences between profit and (forbidden) interest can be depicted as follows[10] –

The background of Islamic financial services dates back to the times of Mohammed. However, they consider that some Islamic financial services (murabaha [11]—a transaction whereby an item will be resold and there will be added to the price a share from the profit as agreed beforehand as well as a fee for the service— and musharaka [12], flexible partnership, wherein all parties contribute capital for fi nancing a project and share the profit as agreed beforehand, with any loss to be covered by all of the partners in proportion to the capital they contributed to the project[13]) date back to pre-Islamic times.

 Although it was in the 1920s when the early Islamic banking services began to provide pilgrims from Dutch Indonesia with money exchange services in Jeddah[14], the development of modern Islamic banking services and of providers of such services has been connected mainly with the increase in use of oil products in the latter part of the 20th century[15] . It was in 2004 when the first Islamic bank—the Islamic Bank of Britain—was licensed in the EU, in the United Kingdom. The above distinction between interest and profit within the concept of a deposit was an essential factor for prolonging the licensing procedure to nearly 24 months—much longer than was usual for licensing procedures[16] and almost twice as long as is set forth for the licensing period in EU Directive 2000/12 on the establishment and pursuit of banking activities (up to

12 months).[17] Pursuant to the principle of sharing profit as well as loss, it is quite acceptable that a depositor of an Islamic deposit will not get the deposited money back to the full extent, since an Islamic deposit is composed of the money contributed by one party and the business management of the other party. Thus the returns from the deposit will be shared between the depositor of the money and the party who provided the business management of the deposited resources. On the other hand, if the business management is not successful and there is no profi t, the loss would be borne by the contributor of the capital—the depositor— and the bank will lose the resources (of know how and administration costs) it invested in the management of the deposit. The UK Financial Services Authority did not accept such a concept for a deposit, and in the course of its licensing procedure, the Islamic Bank of Britain agreed to the concept of a deposit entitling the depositor to a full refund of the deposit. However, the Islamic Bank of Britain’s deposit contract accommodates both the EU requirements for deposits and the Sharia-compliant provisions. The term added by the Islamic Bank of Britain does not prevent providers of Islamic banking services from complying with their obligation under EU directives[18]to take part in a deposit guarantee scheme.Since the ban on interest is one of the main characteristic features among the principles of Islamic finance, it is proper to explore what opportunities exist for Islamic depositors to gain revenues from their deposits. The basic banking services in conventional banks are current account and term deposits, whereby the depositor is entitled to receive interest. In the Islamic banking system, one can define three basic types of deposit accounts: current accounts (Amanah[19] accounts), savings accounts, and investment accounts.

Current accounts are used mainly for daily needs. The resources on such accounts will be payable on demand, whereby neither interest nor profit may be paid on them in Islamic banking. The money deposited in the bank by the client will be regarded as a benevolent loan, al-qard al hasan[20], with the account-holder being a lender and the bank being a borrower and distributor of the resources. The term al-qard al-hasan refers to a beneficial, benevolent, or gratuitous loan[21], whereby the lender will not be entitled to more than was initially given. AAOIFI[22] Sharia Standard No. 19, ‘Qard’ (Loan), describes qard as a transfer of ownership in fungible wealth to a person who will be obliged to return wealth similar to the original. It is strictly forbidden to agree upon anything in addition to the return of the original loan: AAIOIFI states that the stipulation of an excess for the lender is prohibited and it is considered to be riba regardless of whether the excess be in terms of quality or quantity or whether the excess be a tangible asset or a benefit, whether the excess were stipulated upon the conclusion of the contract, or whether the stipulation were in writing or part of customary practice[23]

 It is possible for some banks even to apply charges for current account service; however, others do not, if a minimum balance will be maintained on the account[24]. In the above-mentioned oldest Islamic bank in the EU, the Islamic Bank of Britain[25], waiver of the fee will be applicable if the average balance of the current account was at least £1,500 for the previous month or the total average balance across all savings accounts was more than £5,000 for the previous month. In the event that the resources on the account(s) have remained below the above-mentioned thresholds, there will be applicable a fee of £2 per visit (i.e., for using the services of a branch counter, for services such as depositing cash or cheques, making withdrawals of cash, or transferring money to another account—within the Islamic Bank of Britain or some other bank). However, the client will be charged for no more than one visit per day: any further visits on the same day will be free, and there will be no limit to the number of transactions one may perform at the branch counter in any visit. When one further compares the price lists of the Islamic bank and Estonian credit institutions, it is worth mentioning that cash-machine withdrawals from Islamic Bank of Britain and other UK cash machines are free of charge (unless extra charges are applicable for withdrawals via some cash machines, with prior notification), while most Estonian credit institutions apply fees for cash withdrawals with debit cards from the cash machines of other credit institutions[26]. Estonian credit institutions also pay interest on the resources on current accounts, but the banks providing Islamic current account services state expressis verbis that no credit or debit interest will be paid for such an account[27].

The resources that remain after daily activities can be deposited on savings accounts. The main difference between deposit accounts in conventional banking and Islamic banking is that in Islamic banking it is not possible to agree about the revenues entailed by the deposited resources beforehand—in contrast to conventional banking, wherein interest rates are displayed as guaranteed. A deposit account in Islamic banking is treated as a contractual agency for protecting wealth (al-wadiah[28]) whereby the depositor has authorised the financial institution to use the resources, if the depositor will be entitled to regain the resources to their full extent and also participate in the division of profits with the institution. The Islamic Bank of Britain offers a variety of savings accounts. The On Demand Savings Account[29]is most comparable with the operating deposit offered by AS Eesti Krediidipank[30], from the angle that no notice is required for making a withdrawal from the On Demand Savings Account of the Islamic Bank of Britain and just one day’s notice is required for making a free withdrawal from the operating deposit with AS Eesti Krediidipank[31] Additionally, there are no limits to the number of withdrawals that can be made in any given month, provided that there are sufficient resources on the account. On the other hand, there are no requirements regarding the amount for opening an operating account with AS Eesti Krediidipank, but in order to open an On Demand Savings Account, one has to make a minimum initial deposit of £500 or set up an order mandate for at least £50 a month, to ensure regular deposits into the On Demand Savings Account[32].

Once the funds are available on the account to be invested by an institution providing Islamic financial services, the institution and the depositor will agree with respect to the calculation period being a period equivalent to a calendar month. The Islamic financial institution will use the deposited sum as a contribution to the pool of funds during the agreed calculation period. From the gross income—i.e., all revenue generated by the pool of funds during the calculation period—deductions will be made to cover the administrative and other costs of the investment. The Islamic Bank of Britain states that the maximum annual percentage for such costs will not exceed 1.5% of the average balance of the pool of funds during the calculation period. After that, the bank shall deduct its share of the profit (50% in the case of the Islamic Bank of Britain) from the net income. Then the depositor’s final share of the profit will be calculated through deduction of a contribution to a profit stabilization reserve, with the latter amount limited to 20% of the depositor’s gross share of the profit[33].

Thus, in calculation of the depositor’s share of the profit, the profit payable to the depositor passes through several stages: a) gross income, b) net income; c) gross share of profit, d) the deduction of the share of the profit for the provider of the Islamic banking services, and finally e) deduction of the profit stabilization reserve contribution. Roughly speaking, the crediting of the account of the depositor is the sixth step-in the overall arrangement.

Thus it is that in cases where the projects in which the pool of funds is involved are successful, those depositors with an On Demand Savings Account, Direct Savings Account, or Young Person’s Savings Account will be entitled to a share of profi t that could in certain circumstances be comparable with the interest due from a deposit of the same size in conventional banking. On the other hand, according to the principles of Sharia all financial arrangements that are operated on the basis of profit-sharing also involve the risk that the invested capital could suffer loss if the pool of funds returns a loss. However, the Islamic banks in the United Kingdom have taken measures to address such occasions and reduce the depositors’ potential losses. That is, there is applicable a rule by which the Islamic bank forgoes some of the deductions from the investments with the pool of funds and the profit stabilization reserve account will be administered so as to compensate for any capital losses of the depositor. It is even possible that the deposit—i.e., the invested resources—will suffer from such a loss that the funds invested are fully exhausted. In such a case, the Islamic financial institution would not earn anything either and its loss includes the expenditures for expertise and administration costs etc. involved in the arrangement[34].

The Islamic savings accounts touched upon above entitle the depositor to easy access to the resources deposited; enabling the depositors to take care of their daily financial needs as well as earn some profit from the deposited money. Higher profit rates are available for term deposits both in conventional banks and in Islamic banks. The Islamic Bank of Britain makes available fixed-term deposits of three, six, 12, 18, and 24 months. With Estonian banks, it is possible to deposit money for 1–12, 24, 36, 48, or 60 months. In cases of larger sums, it is also possible to deposit money for shorter terms with Estonian banks: two days or 1–3 weeks.

The Fixed Term Deposit Account is operated on the ‘wakala principle’[35]; that is, the deposited money will be invested by the bank in Sharia-compliant transactions. The bank will calculate the profit generated on the deposit and credit the account of the depositor based on accrual as of the payment date—i.e., upon the deadline set in the contract coming to pass. Unlike in the cases of the other accounts discussed above, the scheme for calculating the share of profit has not been specified for this account; in the Special Conditions, in paragraph 2.6.4, the Islamic Bank of Britain indicates only that ‘we will endeavor to achieve the expected profit rate’[36]. For the Fixed Term Deposit Account, the bank will be entitled to an agency fee (wakala fee) of £1 and any profit generated through investment of the deposit amount that exceeds the expected profit as an incentive. If only the expected profit rate is achieved, the bank will be entitled to only the wakala fee.

1. E.     Conclusion: From the descriptions above for different Islamic banking products, we can see that, before entering into a contract with the bank, a customer can learn how the expected share of profit will be calculated and thereby also the relevant operation fees and expenses determined, but only in the form of a percentage of the average pooled funds during the calculation period. Likewise, the bank’s share of the distributable profit will be provided in terms of a percentage of the distributable profit (which is 50% with the On Demand Savings Account, 50% for a Young Person’s Savings Account, and 40% where a Direct Savings Account is concerned). Although banks providing Islamic banking services in the EU also inform their clients of the possibilities within the framework of deposit guarantee schemes, the obligation of which arises from the relevant EU directive, the Islamic Bank of Britain underscores the deduction from the net income from the investment as a contribution to a profit stabilization reserve (20%)[37]. The resources in the profit stabilization reserve account may be used for improving the distributable profits. However, in the event of the bank being subjected to liquidation according to a court order, the resources in the profit stabilization reserve account will be given to charities, according to the special conditions for the On Demand Savings Account, Direct Savings Account, and Young Person’s saving Account[38]. With regard to the variety of percentages pointed out above—deductions from the profit to cover the operation fees and expenses, contributions to the profit stabilization reserve, and the share of the bank in the profit—the bank highlights that the percentages are maximum figures and the bank may, at its discretion, reduce all of them: its share in the profit, the operation fees and expenses, and the contributions to the profit stabilization reserve[39].

We can conclude that, although revenues from Islamic savings deposits may be similar to interest on deposits with conventional banks in certain circumstances, the ideology behind interest in conventional banking and profit in Islamic banking differ. In both cases, the deposited money will be managed to generate returns; however, it will be calculated in accordance with different principles.

   References:

1.  See, e.g., Michael Mumisa, Islamic Law: Theory & Interpretation (2002). (retrieved from www.weekipedia.com/Islamiclaw on 18th July, 2012)S
2. 2.       Al Quran, Surah 2, verse 275.  

[1]Masudul Alam Chowdhury. Money In Islam: A Study in Islamic Political Economy,London, Routledge, 2007. (retrieved from www.investopedia.com/Islamicbanking  on 20^th July, 2012)

1.  For a discussion of core principles of Islamic Banking, see Institute of Islamic Banking and Insurance (London), “Islamic Banking—what s Islamic Banking?” (Retrieved from http://www.islamic-banking.com/ibanking/whatib.php, on 19^th July, 2012)
2. Although the western media frequently suggest that Islamic banking in its present form is a recent phenomenon, in fact, the basic practices and principles date back to the early part of the seventh century.” From ((quoting Islamic Finance: A Euro money Publication (1997))
3. Retrieved from (www.weekipedia.com/Islamicbanking  on 18^th July, 2012)
4. M. El Qorchi. Islamic Finance Gears Up. – International Monetary Fund Finance & Development December 2005 (42) 4. Available at http://www.imf.org/external/pubs/ft/fandd/2005/12/qorchi.htm (211.7.2012).
5. T. Wülfi ng. Rechtliche Aspekte des islamischen Bankwesens & Scharia-konformer Investments, p. 4. Available at http://www.competence-site.de/downloads/0d/2b/i_fi le_43534/Vorlesung_Islamic_Banking-Skript_deutsch.pdf (21.7.2012)
6.  “riba”, interest, usurious interest, usury: H. Wehr. A Dictionary of Modern Written Arabic. J. Milton Cowan (ed.). 4thed. Considerably enl. and amended by the author. Spoken Language Services, Inc., Urbana, IL, US 1994, p. 375. (retrieved on 20.07.2012 from www.weekipedia.com )
7. M. Asutay. “Islamic Banking and Finance and Its Role in the GCC-EU Relationship: Principles, Developments and the Bridge Role of Islamic Finance”. Gulf Research Centre 2010, p. 7. (retrieved from www.grc/index_2010) on 21.07.2012
8.  “murabaha”, resale with the specifi cation of gain, resale with advance (Isl. Law): H. Wehr. A Dictionary of Modern Written Arabic. J. Milton Cowan (ed.). 4th ed. Considerably enl. and amended by the author. Spoken Language Services, Inc., Urbana, IL, US 1994, p. 371. (Browsed on 21.07.2012)
9.  “musharaka”, partnership, participation, co-operation: H. Wehr. A Dictionary of Modern Written Arabic. J. Milton Cowan (ed.). 4th ed. Edition Considerably enl. and amended by the author. Spoken Language Services, Inc., Urbana, IL, US1994, p. 548. (checked on 21.07.2012)
10. Bank of London and Middle east, glossary. Available at http://www.blme.com/glossary.php#letterm (21.07.2012).
11. R. Wilson. Islamic Finance in Europe. RSCAS Policy Papers 2004/02 MUSMINE – Muslim Minorities in Europe. European University Institute, Florence, Robert Schuman Centre for Advanced Studies Policy Papers 2007/02, p. 2. (retrieved from www.jstor.com on 21.07.2012)
12. M. Lewis, L. M. Algaoud. Islamic Banking. MPG Books Ltd, Bodmin Cornwall 2001, p. 4, 11–12.
13. Islamic Finance in the UK: Regulation and Challenges, November 2007, p. 14.
14. Directive 2000/12/EC of the European Parliament and, of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions, Article 10. – OJ L 126, 25.6.2000, p. 1.
15. Directive 2009/14/EC of the European Parliament and of the Council of 11 March 2009 amending Directive 94/19/EC on deposit-guarantee schemes as regards the coverage level and the payout delay. – OJ L 68, 13.3.2009, pp. 3–7.
16.  “amana”, deposition in trust: H. Wehr. A Dictionary of Modern Written Arabic. J. Milton Cowan (ed.). 4th ed. Considerably enl. and amended by the author. Spoken Language Services, Inc., Urbana, IL, US 1994, p. 36.
17. “qard hasan”, interest-free loan with unstipulated due date: H. Wehr. A Dictionary of Modern Written Arabic.
18. J. Milton Cowan (ed.). 4th ed. Considerably enl. and amended by the author. Spoken Language Services, Inc., Urbana, IL, US 1994, p. 886.
19. S. Atan. The Concept of Al-Qard Ul-Hasan, p. 1. Available at http://www.scribd.com/doc/22013726/Qard-Hassan (17.7.2012).
20. Accounting and Auditing Organization for Islamic Financial Institutions. Available at www.aaoifi .org (16.7.2012).
21. AAOIFI, Shari’a Standard No. 19 Qard (Loan) adopted by Shari’a Board on 15–19 May 2004.
22. S. Tamer. The Islamic Financial System. A Critical Analysis and Suggestions for Improving its Effi ciency. – European University Studies. Europäeische Hochschulschriften. Series V. Economics and Management. Peter Lang Europäeischer Verlagder Wissenschaften 2003, p. 75.
23. Hereinafter the mostly the Islamic Bank of Britain is referred to, the only full Islamic bank in the UK providing retail banking services
24. Complete price list of Swedbank services for private and corporate clients https://www.swedbank.ee/private/home/more/pricesrates?language=EST (9.8.2011) (in Estonian); SEB rates and interest rates http://www.seb.ee/hinnakiri (19.7.2012) (in Estonian); Banking Service Charges: Sampo Pank, p. 5.1, 5.2. Available at http://www.sampopank.ee/public/price_list/Pangateenuste_hinnakiri_EST.pdf (19.7.2012) (in Estonian)
25. General Terms and Conditions Current Accounts terms and Conditions Savings Accounts Terms and Conditions, HSCB Amanah bank account p. 8.2. Available at http://www.hsbc.co.uk/1/2/personal/travel-international/hsbc-amanah/amanahbank- account (19.7.2012).
26. On Demand Savings Account, Islamic Bank of Britain. Available at http://islamic-bank.com/personal-banking/savingsproducts/demand-savings-account/ (19.7.2012).
27. On Demand Savings Account, Islamic Bank of Britain. Available at http://islamic-bank.com/personal-banking/savingsproducts/demand-savings-account/ (20.7.2012).
28. Terms of the Operating Deposit, AS Eesti Krediidipank. Available at http://www.krediidipank.ee/era/hoiused/kasutushoius/index.html (20.7.2012) (in Estonian).
29. The operating accounts available in other Estonian credit institutions provide for longer notice periods for withdrawals, e.g. three days in SEB Bank: see Contract Terms of the Operating Deposit of SEB Bank (available at http://www.seb.ee/hoiusedja-investeerimine/hoiused/kasutushoius (20.7.2012) (in Estonian)) and 10 banking days in Sampo Pank: see Contract Terms of Growth Deposit (available at http://www.sampopank.ee/public/agreement/Kasvuhoiuse_tingimused_EST.pdf (20.7.2012)(in Estonian)).
30. On Demand Savings Account, Islamic Bank of Britain. Available at http://www.islamic-bank.com/personal-banking/savingsproducts/demand-savings-account (20.7.2012).
31. On Demand Savings Account Special Conditions; Islamic Bank of Britain, p. 5.2. Available at http://www.islamic-bank.com/personal-banking/savings-products/demand-savings-account (20.7.2012).
32. Directive 2009/14/EC of the European Parliament and of the Council of 11 March 2009 amending Directive 94/19/EC on deposit-guarantee schemes as regards the coverage level and the payout delay. – OJ L 68, 13.3.2009, pp. 3–7.
33.  “wakala”, entrust, assign, put in charge: H. Wehr. A Dictionary of Modern Written Arabic. J. Milton Cowan (ed.). 4^th ed. Considerably enl. and amended by the author, Spoken Language Services, Inc., Urbana, IL, US 1994, p. 1283.
34. Special Conditions, Fixed Term Deposit Account p. 7.4, Islamic Bank of Britain, 20.7.2012.
35. Profi t Sharing Ratio, Islamic Bank of Britain. Available at http://www.islamic-bank.com/target-profi t-rates/profi t-sharingratio/(20.7.2012).
36. Special Conditions Direct Savings Account, Islamic Bank of Britain. Available at http://www.islamic-bank.com/personalbanking/savings-products/direct-savings-account/ (20.7.2012)
37. Profi t Sharing Ratio, Islamic Bank of Britain. Available at http://www.islamic-bank.com/target-profi t-rates/profi t-sharingratio/(20.7.2012).