What Is Conventional Banking System

The conventional banking system requires the customers to personally present themselves in a banking institution to open an account.

What is conventional banking system. As we already know a bank has two sides one where it receives deposits from customers which is called the liability side and the other where it advances finance to investors and businessmen which is called the. Money is a product besides medium of exchange and store of value. Our ics banks software provides you with a pleasant modular menu to choose from and create your own tasteful and favourite system. Time value is the basis for charging interest on capital.

Real asset is a product. However if the banking system is based on islamic principles musharakah can play a very important role. Members can open a bank account and transact business using the. Profit on exchange of goods services is the basis for earning profit.

On the other hand conventional banking systems are much longer than islamic banks. So the overall banking system can be called as a dual banking system where islamic and conventional banking is in operation side by side. The conventional banking system requires the customers to personally present themselves in a banking institution to open an account. The conventional bank is based on a full fledged intermediary model that lends borrowers to suppliers and then loans to companies or individuals.

Check out with the lending agency for specific requirements. Thanks to experience and product selection traditional banks are more advanced. Other requirements may also be applicable. Conventional banking having a comprehensive banking solution is a must to be able to run a universal banking business with innovative and the best in class technologies.

Therefore we will now discuss how the banks can operate on musharakah basis. To get a loan you need to submit a bank statement usually for a 2 3 month period along with proof of salary for minimum 1 month along with tax returns for 2 years. Members can open a bank account and transact business using the. An islamic window refers to services that are based on islamic principles that are provided by a conventional bank.

Money is just a medium of exchange.