Ilmiy tadqiqot markazi

 
Nazarov Nodirjon Namoz o'g'li - 
Teacher, Tashkent institute of finance,
Department of Finance 
Since the late 1980s one significant development has been for commercial banks, both 
within and outside the Muslim world, to offer Islamic financing facilities to their clients as an 
alternative to 
riba 
dealings. In Egypt the National Bank and the Banque du Caire, leading 
state-owned banks, now offer Islamic services.1 In Saudi Arabia the National Commercial and 
Riyadh Banks provide similar facilities, as does the Saudi British Bank. The National 
Commercial Bank (NCB) is particularly committed to Islamic finance, with a specialist 
network of over 35 dedicated branches throughout Saudi Arabia by 1999 offering a range of 
the 
Shari’ah
-compatible products. This includes the NCB International Trade Fund, a low-risk, 
non-
interestbearing investment fund, with clients’ money marmarked for the purchase of 
goods and their resale at a mark-up on the 
murabahah 
principle. This is the largest fund of its 
kind in the world, with assets worth over $3 billion. Only major companies are financed, and 
all transactions are short term, with an average portfolio life of three months and no 
individual transaction allowed to exceed one year. 
For National Commercial Bank clients wanting to invest in local currency rather than 
dollars the NCB Saudi Riyal Trade Fund is proving popular. The fund functions in a similar 
manner to the International Trade Fund, but its investments include purely domestic trade. 
For clients of high net worth the National Commercial Bank offers a Personal Investment 
Portfolio (PIP) management service, with the Islamic Banking Division acting as 
mudarib 
for 
funds placed in a range of merchandise and commodities, including oil and gas, but excluding 
gold, silver, currencies and commodities prohibited under 
Shar’ah 
law. These developments 
are likely to have profound significance for Islamic banking development, even though some 
clients will always prefer to bank with exclusively Islamic banks rather than Islamic affiliates 
of multinational institutions. The advantage of these institutions is their substantial size and 
perceived solidity, the possibility of cross-selling Islamic services to existing Muslim clients, 
the wealth of in-house expertise available and the efficiency with which they provide their 
services. The much smaller exclusively Islamic banks cannot hope to compete in these areas, 
but they can still claim purity and much greater distance from any riba-based transactions. 
Retail deposit services include the provision of current accounts, as well as low-risk 
investment accounts usually on a 
mudarabah 
basis with clients sharing in any bank profits. 
Conventional banks provide similar deposit services at the retail level, but there are some 
notable differences. First, conventional banks allow overdrafts on current accounts, which 
often incur both fixed-rate charges and interest, with the former varying according to whether 
the overdraft is below or exceeds pre-arranged credit limits. Islamic banks cannot offer 
overdraft facilities on current accounts, which have to be maintained in surplus. However, 
depositors who get into temporary financial difficulties due to events beyond their control 
such as illness may receive interest-free loans (
qard al-hasan
)
. 
Conventional banks offer 
savings rather than investment accounts, the major attraction of such accounts being the 
interest paid to depositors. This often increases as the minimum notice period for 
withdrawals lengthens, with accounts which for example require three months’ notice for 
withdrawals paying more interes
t than those requiring one months’ notice. Some Islamic 
banks apply similar stepped returns with their investment accounts, with a higher 
proportionate profit share as the period of notice for withdrawals increases. 
Below GIFT (Governance Index for Trusts) index is analyzed with information based on 
2022 data: