Important Terminologies in Islamic Banking

In the Islamic banking wiki section, you will find the definition and explanation of important terminologies, that are widely used in and are associated with the Islamic banking and finance.

Islamic banking wiki

Word

Islamic Banking Definition

ÂlimOne who has attained a considerable amount of Islamic knowledge.
AmânahA trust or something with which you have been entrusted. For further details, refer to the chapter on amânah.
Auliyâ’Plural of “walî”. A walî is a friend of Allah.
BâtilIn Islamic jurisprudence it refers to an act which is invalid
BarakahLiterally means “blessings”. It also refers to the experiencing of abundance in things which are of little value.
Bay‘us salamTechnically, it refers to a contract of sale causing an immediate payment of the price and admitting a delay in the delivery of the goods.
Bid‘ahLiterally means an “innovation”. In Islam it refers to the introduction of new things into Islam which have no basis in the Quran or Hadith and regarding these things as acts of îbâdah. A bid‘ah is a major sin in Islam.
Du‘âSupplication, prayer or devotional phrases.
FâsidIn Islamic jurisprudence it refers to an action which is considered to be improper.
Farâ’idPlural of fard.
FardLiterally means “compulsory”. In Islam it refers to those acts and things which are compulsory on a Muslim. Abandoning or abstaining from a fard act is a major sin. Rejecting a fard act amounts to kufr.
FidyahRedemption from the omission of certain religious duties by a material donation or a religious act.
GhuslThe act of washing the entire body from head to toe without leaving single place dry.
HâfizOne who has memorized the Quran.
HalâlThat which is lawful or permissible in Islam.
HarâmThat which is unlawful or prohibited in Islam.
IbâdahLiterally means “worship”. In Islam it refers to all those acts with which one renders worship to Allah.
Ijârah fâsidahImproper leasing or hiring. For further details, refer to the relevant chapter.
JahannamHell.
JanâzahFuneral procession. The deceased person is also referred to as a janâzah.
JannahParadise.
KafanThe cloth in which the deceased is enshrouded.
KaffârahLiterally means “penance, atonement, expiation.” In Islamic law it refers to redemption from the omission of certain religious duties by a material donation or a ritual act.
KuffârPlural of kâfir. A kâfir is one who rejects Allah and does not believe in Muhammad sallallâhu ‘alayhi wa sallam as the final messenger of Allah.
KufrRefers to the state of disbelief.
MahrDowry.
MakrûhThat which is disliked or detestable.
Maradul mautRefers to the last sickness of a person after which he passes away.
Masâ’ilPlural of mas’ala.
Mas’alaLiterally means “an issue, problem or question”. In Islamic jurisprudence it refers to a rule or regulation.
MudârabahSilent partnership. For further details, refer to the relevant chapter.
MujâhidînPlural of mujâhid. Refers to a person who is engaged in jihâd or war against the kuffâr.
MustahabThat which is preferable or desirable.
MutawakkilOne who practices tawakkul.
NafsThe soul.
NûrLight.
ShafîOne who holds the right of pre-emption.
ShaytânThe accursed devil.
Shuf‘ahThe right of pre-emption.
SunnahAn act carried out or sanctioned by Rasûlullâh sallallâhu ‘alayhi wa allam.
TawakkulThe act of placing one’s complete faith and trust in Allah.
UlamâPlural of ‘âlim.
WâjibLiterally means “obligatory”. In Islamic jurisprudence it refers to an act which has not been established by an absolute proof. Leaving out a wâjib without any valid excuse makes one a fâsiq and entails punishment.
WakîlRepresentative.
WasîyyahBequest.
WilâyatLiterally means “friendship”. In Islamic sûfism it refers to that stag where a person gains close proximity to Allah.

Note: The Islamic banking wiki is compiled by the Islamic Banking Department at AIMS. AIMS is an UK based educational institute is offering internationally accredited programs in Islamic finance, including CIB Islamic banking coursesIslamic finance course, and Islamic banking diploma and master in Islamic finance.

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