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Figure 2(a) : Deposit & Investment of Motijheel Branch for 2009 Investment Policy under Islamic Banking Islamic banking has the same purpose as conventional banking except that it operates in accordance with the rules of Shariah, known as Fiqh al-Muamalat (Islamic rules on transactions). The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of riba (usury). Common terms used in Islamic banking include profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah), and leasing (Ijarah). Policy GuidelinesThe Investment Policy guidelines of the Bank describes details fundamental Investment risk management policies, outlines general principles that are designed to govern the implementation of more detailed Investment procedures and Investment risk analysis / risk grading system. Investment Guidelines The basic principles of Investment are described in this section. It must be clearly understood at the outset that these principles are not inflexible and are given as guidelines for protecting the Investments. The followings are the general principle to be considered for Investment to customer on a basis consistent with the global operational objectives and business strategies of the bank: a. The bank shall provide suitable Investment services and products for the markets in which it operates. b. Investments shall normally be Investment from customers deposit and not out of temporary funds or borrowing from other Banks. c. Investment facility will be allowed in a manner, which will in no way compromise with Banks standards of excellence. d. All Investment extension must comply with the requirements of Bank’s Memorandum and Articles of Association, Banking Companies Act 1991 as amended from time to time / Bangladesh Bank’s instructions and other applicable rules and regulations. e. A prudent banker should always adhere to the following principles of Investment to his customer: (1) Background, character and capability of the borrowers, (2) Purpose of the facility, (3) Term of facility, (4) Safety, (5) Security, (6) Profitability, (7) Source of repayment, (8) Diversity It should be remembered that selection of the appropriate borrowers, proper follow-up and end-use supervision through constant follow-up and monitoring are the cornerstone for timely recovery. These guidelines will be updated annually. Industry and Business Segment Focus As a general practice First Security Islami Bank Limited will definitely concentrate its business in Trade Investment / Export – Import business and all types of Commercial Investment, Industrial / Project Investment / Syndication and structured Investment / SME Investment and other specialized programs except otherwise restricted by the

first islami security bank  
first islami security bank  
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