INTRODUCTION OF MALDIVES ISLAMIC BANKING
Maldives Islamic Banking Pvt Ltd (MIB) started their operation during 7th March 2011. With current share capital of of MVR165 million the organization is owned by the Islamic Development for Corporation (ICD) who holds 85% shares while the remaining 15% is owned by Ministry of Finance & Treasury which represents Government of the Maldives (Maldives Islamic Bank , 2015). MIB businesses are carried in strictly compliance with shariah principles and excluded from any interest rate, gambling and any other unislamic practices. The organization aims to offer financial services and banking transactions which are in conformity with shariah requirements. Currently Company has two Branches throughout the Maldives. Figure 1 (Shows Mission & Vision of MIB)…show more content… MIB vessel finance customer will know the exact amount of money which he has to pay for the bank as the selling price will be pre-determined. The vessel that which (MIB) banks finances to buy should not be used for any un-Islamic purpose. For example vessel bough only to carry wine barrels to resorts. Additionally in MIB vessel finance there will not be any other fee, customer has to pay only the cost plus profit amount to the bank. The MIB vessel finance customer has to contribute 30% of the proposed project as own funds and from the bank they will finance the remaining 30%. Additionally there should a collateral or security which should be mortgage with the bank. Mostly a vessel or a house property should be mortgage with the bank. There will be a tenor or period within which the customer has to pay off the facility. In MIB they will not charge any other a amount if the customer is unable to pay off the facility on time