Page 28 - English Book.cdr

MODULE 2

Islamic Financial Services 15
minutes
Say: Listen to the following story about banks and financial services.

Samina explained that in
Islamic finance a saving
product allowed the client to
earn more money. if the bank You can use
other
earned money part of the
examples of
earnings was shared with the Islamic
financial
client. Raza asked what services.
happened if the bank lost
money. Samina said that if the
bank lost money the client
should also bear part of the
loss on his or her saving
deposit. Samina and her
brother Raza were conversing
about a lesson that Samina learnt at school, related to Islamic Financial Services.
Samina explained to Raza that Islamic finance had the advantage to share risk
equitably between the bank and the client. Raza said that he did not fully understand
the concept of sharing risk and asked Samina for examples.

Ask:

Ø What is the main characteris c of Islamic financial services? [its ability to share
risk equitably between the bank and the client in contrast to conven onal
finance where only the bank makes the profit, making the Islamic finance model
more fair compared to conven onal finance].

21 www.cyflp.com.pk Child & Youth Financial Literacy Program