Illustrate the Fundamentals of Islamic Banking by Comparing and Evaluating an Islamic Bank with a Western One.
Illustrate the fundamentals of Islamic banking by comparing and evaluating an Islamic bank with a western one.
Introduction:
This report seeks to give an analysis of Islamic Banking and an organisational comparison to a corporate Global banking system/western one whilst identifying key issues and challenges that may arise for the use of such Islamic banking in the United Kingdom.
“Islamic banking is a growing sector with its diversity in different segments and spectrum. It
Caters to religious Muslims in Muslim’s societies as well as in countries where Muslims are in a minority. In addition, it is a broad standard: non-Muslim individuals and communities that seek ethical financial solutions have also been attracted to Islamic banking. It is clear from banking practice that Islamic banking is equally popular in all communities”. (www.islamic-bank.com).
The first Islamic bank was set up in the late 1960 's in Egypt to fulfil the needs of Muslims who wanted to bank but still live by Sharia law. An Islamic bank is not a religious institution but caters for the needs of the Muslim and is also appealing to non-Muslims who perceive Islamic banking as an alternative to commercial banking successful Islamic banks such as the Dubai Islamic Bank also known as (DIB) who opened in 1975 have set out a good public image for such choice of banking.
Over recent years especially in the last decade Islamic banking has seen a rise in popularity and global development in western countries. Upon focusing on the UK The Islamic bank of Britain is United Kingdom’s mainly recognised sh’aria compliant organisation, Usmani, (2005) defines sha’ria compliance as ‘An act or activity that complies with the requirements of sha’riah Islamic law’.
Islamic banking
As already stated Islamic banking is based on Islamic Sha’riah Law which sets out the principles of all banking activities for such Islamic banks this means all banking activity must be sha’riah compliant, a significant
Introduction:
This report seeks to give an analysis of Islamic Banking and an organisational comparison to a corporate Global banking system/western one whilst identifying key issues and challenges that may arise for the use of such Islamic banking in the United Kingdom.
“Islamic banking is a growing sector with its diversity in different segments and spectrum. It
Caters to religious Muslims in Muslim’s societies as well as in countries where Muslims are in a minority. In addition, it is a broad standard: non-Muslim individuals and communities that seek ethical financial solutions have also been attracted to Islamic banking. It is clear from banking practice that Islamic banking is equally popular in all communities”. (www.islamic-bank.com).
The first Islamic bank was set up in the late 1960 's in Egypt to fulfil the needs of Muslims who wanted to bank but still live by Sharia law. An Islamic bank is not a religious institution but caters for the needs of the Muslim and is also appealing to non-Muslims who perceive Islamic banking as an alternative to commercial banking successful Islamic banks such as the Dubai Islamic Bank also known as (DIB) who opened in 1975 have set out a good public image for such choice of banking.
Over recent years especially in the last decade Islamic banking has seen a rise in popularity and global development in western countries. Upon focusing on the UK The Islamic bank of Britain is United Kingdom’s mainly recognised sh’aria compliant organisation, Usmani, (2005) defines sha’ria compliance as ‘An act or activity that complies with the requirements of sha’riah Islamic law’.
Islamic banking
As already stated Islamic banking is based on Islamic Sha’riah Law which sets out the principles of all banking activities for such Islamic banks this means all banking activity must be sha’riah compliant, a significant
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