Nobody downloaded yet

Stability between Islamic and Conventional Banking In Relation To Customer Confidence - Research Paper Example

Comments (0) Cite this document
From the comparative analysis in between Islamic and conventional banking systems, it has been quite prominently revealed that IFIs have shown tremendous effectiveness in recent years rather than conventional banks…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful
Stability between Islamic and Conventional Banking In Relation To Customer Confidence
Read TextPreview

Extract of sample "Stability between Islamic and Conventional Banking In Relation To Customer Confidence"

Download file to see previous pages A conventional bank is regarded as a financial intermediary, which receives money and deposits, and channels those deposits into lending activities, along with paying and collecting cheques for its customers. During business activities, conventional banks offer several other services and facilities to its customers. Thus, it can be asserted as a bank links together its customers that have capital deficits and capital surpluses. Conversely, an Islamic bank consists of the principle of developing Islamic economics through banking activities. During the last few decades, Islamic banking industry has experienced a sustainable growth rate of around 10-15% per annum. At the same time, it is also observed that this industry is steadily growing towards conventional financial systems (Sole, 2007).
According to the observation, it is determined that the Islamic banking industry not only operates its functions in major Muslim populated countries, but also it has operated its banking activities in low crowded Muslim countries such as the United Kingdom, Malaysia and Japan among others. Consequently, the Islamic banking industry has granted its banking license for expanding its banking operations in several countries such as India and Syria among others. Besides, it has been acknowledged that Islamic banking industry has in excess of 300 branches among 51 countries around the world where Islamic banking system is followed (Sole, 2007). In terms of key products offered to the customers in both the banks they include mortgages (home loan), car loans, personal loans along with credit facility. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Stability between Islamic and Conventional Banking In Relation To Research Paper”, n.d.)
Retrieved from
(Stability Between Islamic and Conventional Banking In Relation To Research Paper)
“Stability Between Islamic and Conventional Banking In Relation To Research Paper”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Stability between Islamic and Conventional Banking In Relation To Customer Confidence

Islamic banking

..., secondary data which are obtained qualitatively are employed in the paper to further investigate customer’s understanding of Islamic banking. These research findings show that both bank managers/staff and customers perceived that there is less awareness of Islamic banking products/services. The respondents could not distinguish the difference between conventional offerings and Shariah compliant offerings; thus, they are not motivated to have an Islamic banking account. Their primary reason of using the Islamic banking...
78 Pages(19500 words)Dissertation

Islamic Banking

...? Islamic Banking Executive Summary Following is a report that entails the origins and the development of Islamic banking over the years. It also provides a critical analysis of growth of Islamic banking in India and China; the report not only highlights the growth of Islamic banking but also enlightens the reader on the limitations of the banking system and the conventional banking system. In order to provide the mentioned topics above, different studies and empirical evidence have been provided in the report. Islamic...
6 Pages(1500 words)Essay

Compare and Contrast between Islamic and Conventional Banking

...? Compare and Contrast between Islamic and Conventional Banking Compare and Contrast between Islamic and Conventional Banking Islamic banking and traditional banking differ from each other in terms of interest, investment and taxation. This paper seeks to delve in to the world of conventional and Islamic banking, seeking out the similarities and differences between the two areas of banking. I will first explain the Islamic banking style...
6 Pages(1500 words)Term Paper

Differences between Islamic and Conventional Banking

...situations. Whatever suits an individual in terms of banking may rest entirely on their perception toward the system present. IBs and CBs are competing for the same consumer base in the different and culturally diverse regions they are located. To promote the smooth and easy flow of operations, management in these systems must realise that customers must be satisfied. The differences that exist between the two systems may be the reason for their success and/or failure. Change is, therefore, inevitable for all these systems if they need to stay ahead, and at the top. Reference Quresh, HA, Hussain, Z & Rehman, K 2012, ‘A Comparison between Islamic...
3 Pages(750 words)Essay

Islamic banking the lessee. Based on the above and other Shari’a compliant practices Islamic Banking system offers its customers services such as savings and investment account (mudarabah) in which bank invests and shares profit with depositor, current account (no interest, no profit), and capital fund investment (mudarabah),equity financing (musharakah) ,short term financing (murabaha) , leasing (ijarah) etc. 3.5. Comparison of the Islamic and Conventional Banking The differences between the Islamic and the conventional banking are both ethical as well as...
22 Pages(5500 words)Essay

Differences Between Islamic Bank and Conventional

...Differences between Islamic Bank and Conventional Islamic baking is different from conventional banking in a number of ways. The key difference between the two forms of banking emanates from the fact that Shariah foundation forms the basis of Islamic banking. Unlike in conventional banking, all dealings, business approaches, focus of investments, and transactions take place on the basis of Shariah law. Islamic banking is based on the foundation of Islamic faith; thus, it...
2 Pages(500 words)Essay

Islamic banking

...of the liabilities that relate to the sale. This service offered by Islamic banks has led to the spread of Islamic banks in most parts of the world since it enables people to own homes (Aziz & Gintzburger 274). How Islamic banking could be the solution to the financial crisis Despite the many challenges posed by the financial crisis, Islamic banking has made significant progress, thus restoring people’s faith in financial institutions and enabling the stability of international finance. In 2010, the growth rate of Islamic banks was 8.85%...
3 Pages(750 words)Essay

The differences between islamic banking and conventional banking-system

...crisis has different impacts on Islamic banking system and on conventional banks. Initially in 2008 the Islamic framework of financial activities of the Islamic banks provided a shield to reduce the adverse impact of the crisis on their profitability. In the period 2008-09 there has been a better performance in “credit and asset growth” of Islamic banks than that of conventional banks, thereby leading to financial and economic stability of the former. However, as mentioned in the previous section, centralized decision making creates a...
20 Pages(5000 words)Essay

The Differences Between Islamic Banking and Conventional Banking System

..., Islamic banks serve the financial needs of billions of Muslims all over the world. Since payment of acceptance of interest goes against the law of Islam, therefore borrowers need to pay only the amount they have borrowed. The research question of this paper is “What is the difference between Islamic banking and conventional banking system? Considering the immense importance of banks in modern economy, it is necessary to understand the functioning of Islamic banking systems as it caters to billions of customers. Moreover, since the 2008...
7 Pages(1750 words)Essay

The difference between Islamic and conventional Banks an important factor that maximized the profitability of Islamic banks. Even though comparison indicators related to stability, asset quality, business operation and the effectiveness of expenditure of conventional and Islamic banks present insignificant variances, there is evident proof indicating that the two differ. Among the key differences included the manner through which either of the banks earns interest and fees for services. Islamic banking is based on free of interest systems and features. According to Toumi, Viviani & Belkacem (2011), the...
12 Pages(3000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Stability between Islamic and Conventional Banking In Relation To Customer Confidence for FREE!

Contact Us