Question

Question 1

a) Define ‘Islamic non-bank financial institutions’ and discuss their role in Islamic society.

b) Describe FIVE (5) key functions of Islamic Development Bank (IDB).

Answer 1

NBFI is the platform where ensuring a steady stream of dividends and employment income to the poor. It is contended with some empirical data from Bangladesh that the proposed model would provide the fastest route to poverty eradication.

Poverty eradication and micro credit played significance influence to the help of role of Islamic society. Proposed world war effect the powerty highly increased.through halalizing ‘riba and Subsidizing MFI’s overheads with zakat/waqf. Geared a lot of development in Islamic society.

Functions of IDB

>To Invest in economic and social infrastructure project in member countries

To make loan to the private and public sector for the financing of productive projects.

> To assist in the promotion of foreign trade.

To provide technical assistance to member countries.

>To undertake research for economic growth for member countries.