ISSN: 2181-3337 SCIENCE AND INNOVATION 2022

INTERNATIONAL SCIENTIFIC JOURNAL №2

HISTORY OF ISLAMIC BANK
Murodxonov Mukhammad Sodiq
Student of Kokaldosh secondary special school under the Muslim Board of the Republic of
Uzbekistan

https://doi.org/10.5281/zenodo.6667432

Abstract. The article talks about the history of Islamic finance, its origin and development.
In addition, the article highlights the differences and stages of development of Islamic finance
banks from traditional banks. Intensive work has been carried out in this area. Comparison of
loans taken under the murobaha agreement from Islamic finance and loans taken from traditional
banks.

Keywords: islamic finance, Islamic banking services, net profit, credit, capital, Islamic
financial bank, Bay al-Wafo, Bay al-Nuqud.

ИСТОРИЯ ИСЛАМСКОГО БАНКА

Аннотация. В статье рассказывается об истории исламских финансов, их

зарождении и развитии. Кроме того, в статье освещаются отличия и этапы развития
банков исламского финансирования от традиционных банков. В этом направлении велась
интенсивная работа. Сравнение кредитов, взятых по соглашению муробаха в исламских
финансах, и кредитов, взятых в традиционных банках.

Ключевые слова: исламские финансы, исламские банковские услуги, чистая прибыль,

кредит, капитал, исламский финансовый банк, Бай аль-Вафо, Бай аль-Нукуд.

INTRODUCTION

The historical roots of economic education in the development of economic thinking, the
rules of Islam, the immortal works inherited from our great ancestors serve us as an invaluable
source. In the Qur'an, the expression of economic ideas in Islamic teachings, one of the activities
of human society, economic relations, plays an important role. Because in economic relations,
the basic human characteristics are reflected. The Qur'an tells people that the equality of all
human beings on earth is a divine command. The Islamic financial sector is one of the fastest
growing sectors in the world today and includes innovative financing mechanisms. If we look at
the history of Islamic finance, Islam came to humanity through the Prophet (peace and blessings
of Allaah be upon him) and in a relatively short period of time spread to Mecca and Medina.
Before Islam, these cities prospered through local entrepreneurship, interstate and inter-ethnic
trade relations. During this period, the practice of interest-based financing was the main source
of meeting financial needs.

RESEARCH METHODOLOGY
Meccan businessmen and Madinan farmers met their financial needs only through interest
financing. After the revelation of Islam, the financial structure of these cities began to change
significantly. In particular, the verses of the Qur'an, which forbade usury, the consumption and
sale of certain products, served as the basis for Islamic finance. As a result, these principles
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were successfully applied in Mecca and Medina, and for centuries spread to other parts of the
world. The establishment of Bait al-Mal, the central Islamic treasury, during the time of the
Prophet (peace and blessings of Allaah be upon him) indicates that the development of the
Islamic financial system began at that time. Zakat, Ushr, Kharaj, Jizya, customs duties,
voluntary donations, spoils of war, and other similar incomes and incomes were the main sources
of wealth for the House. In addition to the establishment of the House, historical evidence
confirms the existence of roadblocks in the early days of Islam. For example, Ibn Abbas r.a. He
would take the voriq (silver minted on dirhams) and send a confirmation to Kufa (a city in Iraq).
Another example is Abdullah ibn Zubayr r.a. In Mecca, he would accept cash from depositors
and write a letter to his brother in Iraq, ordering the depositors to give them their deposits when
they arrived in Iraq.

RESEARCH RESULTS

The above is a brief history of Islamic finance from 650 to 750 AD. During this period,
Rome, Tunisia, Turkey, India, and Sumatra saw significant changes in local and international
trade, and various trade and financial practices were used. Most of these operations were carried
out on the basis of Mushoraka (profit and loss distribution). Financial instruments such as
sukuk, Suftaja (loan receipt), Bay al-Wafo, and Bay al-Nuqud were also widely used in practice.
By the end of the 19th and the beginning of the 20th centuries, the interest-based banking system
began to expand. For their part, Muslim scholars of the time took the situation seriously and
argued for the introduction of an alternative financial system based on Sharia law for the Muslim
community. In 1890, for example, an interest-free financing institution was established in India.
Then, in 1923, another institution was established in Hyderabad called Anjuman Imdad-e-Bahmi
Qardh Bila Sud (Interest-Free Credit Society). Then, in the early 1950s, the Local Islamic Bank,
the first modern Islamic financial institution in Pakistan, was established. By the end of this
year, interest-free banking products such as Muzaraba and Vakala (agency) have also been
introduced.

The modern Islamic bank, based on Sharia law, was founded in 1963 in Egypt by
establishing a local fund called Mit Ghamr. At the same time, in Malaysia, the Pilgrim
Foundation Fund Corporation was established to provide financial support to Muslims in
performing the Hajj, and in 1969, the Pilgrims Management and Fund Board, also known as
Tabung Haji (Tabung Haji), was established. included. By the 1970s, the focus on Islamic
finance had increased, and as a result, the Nasir Social Bank was established in 1971 in Egypt.

CONCLUSION
In conclusion, On July 1, 1983, the Islamic Bank of Malaysia Berhad (BIMB) was established
in Malaysia. Single or Bilateral Banking In the early 1980s, there was a lot of debate and
discussion among local and international financial institutions about the introduction of a single
or dual banking system. A single banking system means that all financial systems in the country
must comply with Sharia law, while a two-tier banking system means that both Islamic and
traditional financial institutions operate in the country simultaneously (i.e., side by side).

References:

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