BIBD is synonymous with Islamic banking.
Islamic principles of commerce govern all our decisions, and these principles can meet your financial needs too. This is our heritage, and this is our promise to you.
Read on to learn more about Islamic banking and how it works.
What is Islamic Banking?
Islamic Banking is banking for anyone who wants to base their financial decisions on Islamic values.
Just as Islam inspires Muslims to live rightly in other areas of life, it also offers guidance on commerce. Hukum Syara' (Islamic guidelines) on trade, Investments, borrowing and other financial activities ensure that we build and exchange wealth in ways that are beneficial to each other and to the wider society.
"When the prayer is finished, disperse in the land and seek Allah's bounty." (Al-Quran 62:10)
"Allah has permitted trade and forbidden interest." (Al-Quran 2:275)
Islamic scholars, bankers and regulators have set up rules for Islamic banking based on a dynamic understanding of Islamic teachings. These efforts allow bank customers to benefit from the convenience of modern banking without sacrificing their religious values and principles.
Brunei Darussalam is an ideal environment for Islamic banking. It is already practiced by the country's largest bank, BIBD. With Islamic Banking Order 2008 and Takaful Order 2008, the Government of Brunei has taken steps to strengthen Islamic banking further and to level the playing field for conventional and Islamic banks.
As more people understand the meaning and benefits of Islamic banking, we expect that Islamic banking will continue to grow.
How is Islamic Banking different from conventional banking?
Both Islamic banks and conventional banks share the same purpose: to address the everyday financial needs of bank customers. The difference is in how a bank achieves this.
Islamic banks look for appropriate ways to serve their customers without violating Shariah guidelines and principles. Some products and services offered by conventional banks already meet Shariah guidelines, and you can expect an Islamic bank to offer such a product or service as is (a current account, for example). In contrast, other conventional banking products and services may include objectionable elements like riba (interest), maysir (gambling) or gharar (uncertainty). In these cases, an Islamic bank has two choices: it may decide not to offer the product or service to its customers, or it may design a Halal alternative.
Because of the lack of general knowledge about Islamic banking, people sometimes get confused about the difference between conventional and Islamic banking. Two banking products or services might look similar because they meet the same need, but they are designed differently.
How does BIBD ensure it adheres to Islamic banking principles?
Our customers place a lot of trust in us-they trust us with their money, with their personal information and with the responsibility to follow Islamic banking principles in all our decisions. We take this responsibility very seriously.
Before any new product or service is introduced to customers, it must be approved by two different Shariah authorities-first, BIBD's own Shariah Advisory Body, and then the Shariah Financial Supervisory Board of Autoriti Monetari Brunei Darussalam (formed by Section 3 of the Shariah Financial Supervisory Board Order 2006). When BIBD reports the year's activities at the Annual General Meeting, the Shariah Advisory Body Report is an integral part of its submission.
Indeed, Islamic banking is a dynamic, evolving field with new products and services introduced regularly, but you have our commitment to do our very best to live up to our faith and heritage.