Islamic Banking: Principles and Main Contracts
The principles of Islamic banking — prohibition of riba, risk sharing and asset backing — and how murabaha, ijarah, mudarabah and musharakah work, with…
Intermediate6 min read
Banking
Deposits, loans, interest calculation and the banking system.
Articles
10 articles found
Credit Appraisal: How Banks Assess a Loan Application
How banks assess a loan application: the five Cs of credit, key ratios such as debt service coverage and debt-to-income, collateral, and the steps…
Intermediate5 min read
Loan Classification and Non-Performing Loans
How banks classify loans, when a loan becomes non-performing, how provisions and expected credit losses work, and why NPLs matter for banks and the…
Intermediate5 min read
Central Banks and Monetary Policy: Tools and Transmission
What central banks do, the tools of monetary policy — policy rates, open market operations, reserve requirements — and how a rate change reaches…
Intermediate5 min read
Capital Adequacy and the Basel Framework
What bank capital is, how risk-weighted assets and the capital adequacy ratio are calculated, and what the Basel III framework requires, with a worked…
Advanced5 min read
Digital Banking, Mobile Financial Services and Payment Systems
How digital banking, mobile financial services and payment systems work — from card payments to real-time transfers and mobile wallets — and the risks…
Beginner5 min read
Letters of Credit and Trade Finance Explained
How a letter of credit works, the parties and documents involved, the main types of LC under UCP 600, and other trade finance tools…
Intermediate6 min read
How Banks Work: Deposits, Lending and the Interest Margin
How commercial banks work: taking deposits, making loans, earning the net interest margin, managing risk and creating money — explained with a simple bank…
Beginner5 min read
How EMI Is Calculated: Loan Payments and Amortization
The formula behind an equated monthly instalment, how each payment splits between interest and principal, and how tenure and rate change the total cost.
Beginner4 min read
FDR and DPS: How Fixed and Recurring Deposits Grow
How a fixed deposit (FDR) compounds a lump sum and how a recurring deposit (DPS) builds savings from monthly instalments, with formulas and worked…
Beginner5 min read