2nd Meeting Financial Banking Management

You dear uh brothers and sisters ceo given a second meeting on uh financial banking management and today we are going to discuss the topic about the concept of banking operations on this regard we divide into two aspects of banks namely the confessional and islamic banks basically these two type of bankings have a different operations models or framework

Whereby in conventional banking the concept is run under the um riba base you may see like that and the way around if you talk about the islamic banking operations the concept the concept is the free interest bank the details are shown in the in the grab whereby in the left hand side you see the conventional banking operations let me just discuss a bit simple

On conventional banking operations for example we have two practice here the banks and the clients the bank as the um the borrowers and also the calendars the client here could be also the borrowers as well as the creditors yeah and if you see um from the first aspect for example here the banking sector has a surplus of fund and the way around the client here

Has deficit uh fund therefore these two parties can do the transactions by lending the money from bank to the clients on these regards the bank acts as the creditors and the client acts as the debiters and once the transaction are completed the client should and must return the financial obligation to the bank are stipulated in the previous agreements for this

Case the client will return the money not only the principles but also the additional amount which is called as interest so uh the basis of the additional amount that the client pay back to the bank is no solid basic there’s no any underlying transactions underlying asset you may say like that in return the money to the banks so the bank on these transactions does

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Not consider and concerned how can the client will pay back the money whether the clients has already uh put the money in the business or just put the money into unproductive activities no worries about that and the bank will just consider that every uh month or every uh period the clients must um pay back the money yeah as distributed time so on this regard the

Transaction in confessional bank in the basis of disconnections between bank and clients differently if you look at the islamic banking operation here a similar with conventional bank there are two parties the first is bank and second one is clients on these transactions the bank can act as the debiters or debiters or in islamic principles we can say as the mal

Or mudare and the same time the client here can also act as the mudori or mal or predators and debiters but the main difference from congressional banking operation is that in islamic bank when the colony here for example needs a particular particular amount of fund he or she request to the bank yeah with various kind of contracts or financial agreements so

The finance agreement is not alone but based on the need of the clients if for example the clients here uh intends to purchase a goods so that the contract could be in the form of trade transactions so in three transactions the bank will give the the money to the client yeah and the client here yeah will pay back to the bank due to the bank sells the goods to

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The clients so the bank remains keeping the additional fund or money but this additional of money is not considered as interest because bank acts as the sellers and the players act as buyers so any gaps between seller and buyers is uh consider us the profits and there’s no issue on that and in addition if the client here intends to consume in term of good but

Try to develop a business so that the the the contract is not in the form of threat but in the form of partnership yeah in the partnership here surely the client must remain paying back the money to the bank but based on the contributions yeah so the bank must also contribute to the business of the clients the bank must also support and consider what a step the

Client has already successfully conducted the business yeah so on this regard in short tissue and brothers within banks and claire there is a motor relationship there is a connection between bank and clients so if the client for example got lost from the businesses surely the bank should also be at a loss and the way around yeah therefore in conclusions inside

Banking operations between the bank and the clients has close connection and relationship differently in confinement bank there is disconnect so whatever happened to the client there’s no any connection in the banks because the bank must remain uh getting the money back regardless the clients happens in the business or in the activities yeah but in general the

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Banking operations has the same principles whereby there is a framework or flows between bank and clients yeah and there is any flows of fund and from the banks to the clients yeah but from conventional bank in islamic bank there is there is no fund flowing to the clients but there is a flowing of goods the flowing of responsibilities the flows of partnership

To the clients and the way around so if there is any uh additional amount obtained from this operation from confessional perspective it is considered as in-price because no basis or no underlying uh asset in cooling during the transactions but in islamic bank the additional amount due to this transaction because of the profit or loss due to they are conducting

The connected interactions they responsible together about the the money that given by the bank to the clients and the contracts also here could be various um back to the need of the client itself in islamic bank either in the form of trade or in the in the form of partnership these are the thing that can be explained from the banking operation from two type

Of banking systec sectors namely conventional and islamic banks foreign

Transcribed from video
2nd Meeting Financial Banking Management By Dimas Bagus Wiranatakusuma