The model of Islamic Banking, whose theoretical and practical development
chronologically belongs to the period after the World War II, can be
justifiably considered as a phenomenon based on the principles notably
different in comparison with the dominant model of banking organization
and operating throughout the world. In most Islamic countries, financial
markets are either non-existent or have developed only to a limited extent.
Government securities are traded only to a small degree, and those
instruments which are marketed often carry riba. Equity markets are also
underdeveloped, though from the point of view of Islamic financial
institutions, such investments are of potentially greater interest than
conventional government securities. The shares of specifically Islamic
companies are quoted on the Cairo, Amman and Kuwait stock markets,
and many of the other shares on offer could be considered as legitimates
Islamic investments. The Islamic Financial Market includes banking, capital
markets, and insurance that comply with shari'a principles. Islamic finance
is structured to avoid the following, which are all prohibited under sharila:
riba, maisir, and gharar.
My name is Nemanja Budimir, I was born in 1988 in Zenica, Bosnia and
Herzegovina. I finished the Faculty of Economics of the University of
Business Engineering and Management in Banja Luka, Department of
Finance and Banking in 2012. Year 2014, I defended master's thesis
entitled "Accounting through the International Accounting Standards".
Islamic banking and Islamic