Islamic financial institutions including Islamic banks have been growing in different parts of the world including countries like Iran, Sudan and several others and all these countries are practicing Islamic banking using Islamic laws…
Download file to see previous pages...
However, some countries such as Indonesia, Bangladesh, Egypt, Malaysia and Jordan are offering the services of Islamic banking through traditional banking services. In some countries like Pakistan, there are banks that are operating in accordance with the Islamic laws and at the same time there are some banks that are practicing conventional banking and at the same time some of their branches are offering Islamic banking services. Not only there has been an increasing trend of Muslim majority countries practicing Islamic banking products but certain Western countries including United Kingdom, United States and Australia have been also observing an increasing trend in regard to the Islamic banking.
Although the industry of Islamic banking is still growing and an emerging industry, but in different parts of the world this industry has been achieving very high profits unlike United Kingdom. However in countries like Pakistan, Bangladesh, Bahrain this industry has been growing. In Pakistan, Islamic banks have reported a profit of 5.7 PKR which is approximately 59% of the total market share in the year 2011 (The News, 2012).). In Bahrain, Islamic banking industry is also one of the fasted growing industries of the countries and still there are several opportunities in the countries (Laxman, 2011). In addition to this, Islamic banking industry is showing good progress and is giving tough time to traditional banks in several other western countries. Financial performance of Islamic financial institutions in UK United Kingdom and particularly London has been considered as an important market place by investors and in this part of the world; both Islamic and non-Islamic banks have invested. Initially Islamic banks started their services in London by offering simple products like house financing however with the passage of time the quality of products as well as the complexities involved increased (Ainley, Mashayekhi, Hicks, Rahman, and Ravalia, 2007). after analysing different opportunities for profits and growth, number of Islamic banks invested in United Kingdom and tried to capitalise on these opportunities. Some of the most prominent names of Islamic banks in UK are: Islamic Bank of Britain HSBC Amanah Lloyds TSB The products and services offered by Islamic banks are not only for Muslims but for non-Muslims as well and this is one of the reasons why it has become highly famous in UK despite of the challenges it faces. However recently the performance of the Islamic bank has not been satisfactory and the opportunities that every one identified had not been capitalised by these Islamic banks. This is one of the reasons why one of the leading Islamic banks, Islamic bank of Britain had to be bailed out in the year 2010 by Qatar after several successive years of losses. After the financial crisis, the Islamic banks in United Kingdom have suffered a lot. Lloyds Islamic bank also removed its investment from United Kingdom as they did not see bright future in the country (Goodway, 2010). Islamic Bank of Britain which has been able to make a name in the United kingdom is also losing its customers. in 2009, the Islamic bank had lost almost 50,000 customers as the total loss of the bank increased to ?9.5 million from ?5.9 million. Considering the situation of the bank, IBB had to raise additional capital of 2009. Then
...Download file to see next pagesRead More
Some conventional banks have integrated Islamic banking by creating subsidiaries that offer Shari’ah products. Jurisdiction’s Central Bank Acts, Islamic Financial Services Board and Auditing Organization for Islamic Financial Institutions have been created to provide framework under which Islamic Banks will operate.
Why the Islamic Financial System has the Strength to Mitigate the Current Financial Crisis? The research study is an analytical approach towards evaluation of the Islamic financial system for measuring its effectiveness to mitigate the present financial crisis in the world.
3 Methodology 10 1.4 Structure of the thesis 10 This chapter lists out the aims, objectives, methodology, project plan and schedule of the research study to understand the different considerations of two of the most popular accreditations systems rating green buildings across the world.
The objective of research is to examine the awareness of Muslims and non-Muslims customers and bank authorities of Islamic banking notably in Saudi Arabia and UK about the function and concept of this system through reaction toward it; to evaluate the performance of Islamic banking based on the available financial data.
The Development and Growth of Islamic Shares Investment in the UAE 25 Fundamental Analysis 25 Development of UAE Economy through Direct foreign investment 27 Background of NASDAQ Dubai Stock Exchange 28 Analysis of the Data and Variables 29 CHAPTER 6: CONCLUSION 36 Bibliography 37 Abstract and Executive Summary The Islamic economic system has always implemented such principles that safeguards the rights of the investors in the economy and create an environment of utmost harmony in the economy.
Both forms of methodologies have their uses, but this analysis will use essentially a qualitative method. A survey strategy will be employed in order to secure the necessary numerical data pertaining to the challenges and opportunities posed by Islamic banking practices – especially in terms of adapting these practices to the Seychelles island chain.
The procedure of arbitration is basically designed and executed within a sphere of private, unofficial, rapid and economical environment with the provision of the parties in exercising additional control over the process with the addition of clauses at the juncture of dispute evolution and simultaneously transforming certain rules of the arbitration for suiting up of a particular dispute.
The principles according to which some Islamic schools abide by are incompatible with the practices of international arbitration; however, there are other Islamic schools whose interpretations are consistent with the international practices, which are permissible for Muslims to follow or adopt.2 Arbitration as a contemporary legal system for settling international disputes was relatively recently introduced in the Islamic world, most of which had dealt with oil disputes.3 For many years and in some cases until today, countries in the Arab region which operate under Islamic rule have not fully developed a legal system implementing arbitration, leaving the general impression that the courts in
Would Islamic financial system be able to prevent the current global financial crisis? The global financial crisis of 2008 is largely attributed to the vulnerability to risk in the capitalist financial systems and an inherent lack of discipline in its investment and lending practices.1 Islamic banking and finance on the other hand, is described as more risk averse and highly disciplined in its investment and lending policies and practices.2 Studies comparing the performance of Islamic banks and conventional banks during the 2008 global financial crisis suggests that Islamic banks were more efficient,3 more profitable or more stable.4 Rawshan argues however, that Islamic banks were largely avo
Early Islamic history is replete with detailed depictions of Muslim leadership during the nascent phase of the religion, when enlightened leadership was crucial to fostering Islamic growth. Most early Muslim works, even
2 Pages(500 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Dissertation on topic Current performance of Islamic bank around the world for FREE!