islamic banking in the early days of Islam.
- Mecca prospered with biz & trade with bizmen participating in loans with interest charges. --} there is evidence to indicate that the development of the IB system started from the time of the Prophet s.a.w
the status of economy and banking in Islam.
'BAITUL MAL'
what is Baitul Mal???
- the only known organized Islamic financial institution which originated during the time of the Prophet s.a.w was called 'baitul mal' {-- the exchequer of an Islamic state @ public treasury.
- who reorganized the establishment of 'baitul mal' and operated it as a separate entity ??........ [ Caliph Umar al-Khattab].
the revenues of baitul mal came from 2 sources which is primary & secondary.
primary sources
- zakat
- Kharaj (land-tax)
- Jazja/Jizyah (poll-tax)
- custom duties
- tolls
- sadaqah
secondary sources
- property with no unknown owner
- property of apostates
- estates of deceased person who has no legitimate heirs
- claims in regard to state responsibilities such as the expenses for the army and salaries for state officials
- to financial activities for the public benefits.
baitul mal didn't generally accept deposits from the public nor gave loans to those in need. there is however,evidence which indicates that baitul mal have extended loans to certain individuals.
the task of keeping other people's money and valuable items was provided by trustworthy individuals
- Prophet s.a.w
- Az Zubair Al Awwam
