Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Are Islamic Banking Roles Suitable For And Adaptable To Global Financial Regulations - Research Paper Example

Comments (0) Cite this document
The research objectives will be at understanding the foundations and principles behind Islamic Banking and the legal differences and or similarities with Global Financial Regulations and looking into Sharia Law and how this impacts Islamic Banking…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.2% of users find it useful

Extract of sample "Are Islamic Banking Roles Suitable For And Adaptable To Global Financial Regulations"

Download file to see previous pages The increasing importance and interaction of Islamic banks with their Western counterparts means that common ground of understanding with regard to inter-bank cooperation and relationships need increased understanding and regulatory enhancement. The key issue impacting banking operations is a risk. This is the factor that bankers seek to minimize as well as control, and under inter-bank cooperation, the need for setting adequate capital reserves against loss is the key issue. The different structures used by Islamic banks in conjunction with Sharia compliance represents the point in question and this the question as posed by this study, which seeks to understand as well as determine the suitability as well as adaptability of Islamic Banking roles to global financial regulations. In exploring the topic, it was deemed that the legal systems are the foundation points, along with understanding the structures and rationales behind Sharia financing. Working around terminology is then a means to fit or devise methods to cause the preceding to occur. This study found that there is a common ground for the above, as well as the fact that present global banking regulations contain processes whereby this can work. The question is not solely if Islamic banking can adapt or if they are suitable to global banking regulations, but rather if the two systems can find a common ground under which to work. This examination has found that such is the case, but not without effort on both parts to craft risk management procedures and oversight to deal with the special circumstances used in Sharia-compliant banking. In approaching as well as delving into the subject of ‘Are Islamic Banking Roles Suitable For and Adaptable To Global Financial this study entails understanding the differences of that system from the Western system of banking. The number of Islamic countries along with their respective overall populations represents a segment of global economics that has and is increasingly become more important. There are 48 countries where Muslims are the majority (Islamic World, 2010) with the total global Muslim population estimated in 2009 as 1.66 billion (, 2009) out of a world population of 6,805,152,504 (U.S. Census Bureau, 2010) that represents 24.38%. In spite of the preceding, Islamic banking totals just 0.5% of international banking assets (Watts, 2009). Despite that small percentage, the oil-rich economies of Kuwait, Saudi Arabia, Indonesia, Malaysia as well as other countries in the Middle East have embarked on massive infrastructure and building programs that have tied a number of their loans and finances into the international system (Watts, 2009). Evidence of the increased presence of Islamic banking is strongest in the United Kingdom that has become the Western Islamic banking center (Wood, 2007). The preceding marks the spearhead of an Islamic banking surge that has spread to the United States, along with other prominent Western financial centers due to the involvement of “… banks such as Citigroup, HSBC, Deutsche Bank, Morgan Stanley, and Goldman Sachs” (Wood, 2007). This summary has been engaged in to provide a realm of understanding with regard to the economic potentials behind the interest in Islamic banking. In keeping with the above is the fact that as countries with the largest percentage of Islamic populations continue to achieve increased economic results, the impact and significance of the development in those economies as well as global trade takes on enhanced importance with regard to financial ramifications and inter-bank action. In examining the context of this study the core aspect in the examination concerns itself with the suitability as well as adaptability of Islamic banking roles to global financial regulations. In order to ascertain the answer to this broad-reaching question, a number of areas for investigation will need to be engaged. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(Are Islamic Banking Roles Suitable For And Adaptable To Global Financi Research Paper, n.d.)
Are Islamic Banking Roles Suitable For And Adaptable To Global Financi Research Paper. Retrieved from
(Are Islamic Banking Roles Suitable For And Adaptable To Global Financi Research Paper)
Are Islamic Banking Roles Suitable For And Adaptable To Global Financi Research Paper.
“Are Islamic Banking Roles Suitable For And Adaptable To Global Financi Research Paper”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Are Islamic Banking Roles Suitable For And Adaptable To Global Financial Regulations

Islamic banking

... with the transaction which is expected to be interest-free. vii Ijara (leasing). Today, this principle is commonly used in home finance, Islamic mortgage and one of the Islamic funds (Iqbal, 1997). Under the Islamic banking, the bank transfers its legal right over a particular asset/property not the corpus to someone else in exchange of considerable amount and agreed period. 2.4 Compatibility of Islamic Banking with Conventional Banking Most of the relevant literature suggested that Islamic and conventional banks vary in many ways particularly in taking risks and liquidity. The growing literature mostly contained issues of comparison between the role of Islamic and conventional banking in the global financial market. For example, money...
78 Pages(19500 words)Dissertation

Islamic Banking and the Financial Crisis

The following verses of the Quran illustrate Islamic prohibitions on riba or usury: “And for practicing usury, which was forbidden, and for consuming the people’s money illicitly, We have prepared for the disbelievers among them painful retribution.” Al-Nisa 4:161 “Those who charge usury are in the same position as those controlled by the devil’s influence. This is because they claim that usury is the same as commerce. However, God permits commerce and prohibits usury.” Al-Baqarah 2:275 “The usury that is practiced to increase some people’s wealth does not gain anything at God. ...
Background and Key Concepts of Islamic Banking Holden (2007) states that riba was a pre-Islamic practice that required that when a borrower could...
12 Pages(3000 words)Essay

Banking Regulations And The Current Financial Crisis

...?Banking Regulations and the current financial crisis Introduction Banking sector is termed as a heavily regulated industry and it has a huge impact on both the local and global economy. So every country feels the need for a stable banking system. Instability prevailing within the banking system can lower down the growth of a country by causing higher uncertainty (Jokipii and Monnin). However such banking regulations proved to be less influential during the occurrence of the current financial crisis. Such banking regulations could not prevent the crisis which resulted from the recent economic downturns and overall global meltdown. Banking regulations failed to bring back the confidence of mutual trust investors and could not prevent...
7 Pages(1750 words)Essay

Islamic Banking

... law and its implementation is through the growth of Islamic economics. This type of banking system prohibits the fixed payment interest on loaned money and it also shuns the investment in the business that cater goods and services that are considered unlawful in Islam. Today more than 200 Islamic financial institutions exist around the world (Iqbal and Llewellyn, 2002). Ahmad El Najjar pioneered the first Islamic bank that came into existence in Egypt, in 1963. Thus, when 1976 ended, there were nine banks in the country that were established on the same concept; however, previously in 1974 the Organization of Islamic Countries had established a bank called Islamic Development Bank that purely ran on the principles of Islam. Although...
6 Pages(1500 words)Essay

Islamic Banking

...Critical Analysis on Islamic Banking Islamic Banking The role of financial intermediaries in the economic system can never be over d. Banks, perhaps, are the most popular "go between" which balances the supply and demand of funds by facilitating the transfer of funds from investors to sectors which needed financing. Islamic banking has been one of the less popular banking systems in the financial market. It should be noted that even though Moslems accounts for 20% of the total world, the number of Islamic banks in the globe is only a small portion relative to commercial banks. Some recent developments, however, is presenting opportunities for Islamic banks. It should be noted that the Islamic finance market has already matured to $200...
5 Pages(1250 words)Essay

Islamic banking

... socially conscious global citizens. Today Islamic banking is a mainstream business, with customers amongst both Muslim and non Muslim community. It has been thought that Islamic Banking was introduced in the UK because of its over 3% population was Muslim and offered a large customer base for such Banks. While this may be largely true but 3% population does not justify the existence of a completely new banking system. London is the financial capital of the world and huge sums of money from the Muslim world also passes through this route. Hence there was a gap where more conscious and religiously minded investor neither found a suitable place to park his money nor avenues of investment that suited his preference. This was the main cause...
22 Pages(5500 words)Essay

Islamic banking system study

Britain is a country with an important position in the global market; in accordance with a recent report – based on the data available on the British economy – the British economy is considered to be the ‘the seventh largest economy in the world, with a per capita GDP of $30,900 in 2005’ (Forex Market resources, 2010). The development of the British economy is monitored by the country’s government but also by the Bank of England which ‘was founded in 1694, nationalized in 1946, and gained independence in 1997; the Bank of England is the central bank of the U.K.’ (Forex Market resources, 2010). The banking market in Britain has a decisive role in the development of the country’s economy – a phenomenon common in all countries intern...
12 Pages(3000 words)Essay

Islamic Banking

Islamic Banking Introduction Islamic banking has grown over the last thirty years when it was almost unknown and has since expanded to be among the fastest growing international banks. There are more than two hundred Islamic banks spread in more than 70 countries globally. Although most of the countries in which the bank operates are mostly in the Muslim world, the bank has extended even to countries which are not predominantly Islamic. However, there are more Islamic institutions which this study will not take into consideration and they include companies such as Islamic insurance (takaful), Islamic investment houses, and commodity trading companies, among other institutions.
2. Justification for the research proposal
2 Pages(500 words)Research Proposal

Islamic Banking Systems

...Table of Contents Executive Summary Introduction 2 Characteristics of Islamic Banking 2 The Prohibition of Riba & the Principles behind it 3 The Role of Religious Supervisory Boards 4 Islamic Finance in the Global Economy 4 A growing market & the root causes of growth 5 Managing Risk 6 Corporate Control 6 Islamic banks in worldwide competitive environment 7 1.Product growth and improvement 8 2.Allocation 8 3.Operational Brilliances 8 Common Features & differences of the two Systems 9 Challenges for Islamic banking 10 1.Establishment of suitable risk and liquidity supervisory techniques 10 2.Acquiring reliable Shariah administration 10 3.Managing, organizing and controlling the Trustworthy personnel 11 4.Tackling legal and tax...
18 Pages(4500 words)Research Paper

Islamic Banking vs. Conventional Banking

As widely known, Islamic banks requires strict compliance with Islamic Shariah, mainly based on its fundamental principle of ‘prohibition of riba-interest-‘ whereas interest plays significant roles in making conventional banks competitive in the market.
Islamic banks normally provide almost all services that conventional banks used to offer to its customers except that Islamic banks don’t accept or pay interests on lending and deposits and indulge with haram (Prohibited in Shariah) businesses or unethical business practices. The major functions of a commercial bank include safeguarding customers’ money, supplying money, lending functions, investment function, and other financing services. Islamic banks...
11 Pages(2750 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 Are Islamic Banking Roles Suitable For And Adaptable To Global Financial Regulations for FREE!

Contact Us