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Prospects of Islamic Banking

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Prospects of Islamic Banking
Cardiff Law School
2003-2004

PROSPECTS OF ISLAMIC BANKING:
Legal and other Challenges and Issues

Faisal Nasim
LLM (Commercial Law)

Table of Contents
Acknowledgment…………………………………………………………….... 1
Preface ………………………………………………………………………..... 2

Glossary of Arabic Terms …………………………………………………......4

Chapter 1: ……………………………………………………………………....5
Introduction and the Basis of Islamic Banking

Chapter 2: ………………………………………………………………..……..9
Islamic Modes of Financing

Chapter 3: ………………………………………………………….………….21
Practical Application of the Islamic Modes of Finance: A Research on Islamic
Project Finance

Chapter 4: ……………………………………………………………….……30
Common Law Developments: Impact of Shariah Law on Judicial Decisions and
Contrariwise

Chapter 5: …………………………………………………………….………39
Legal Deliberations and Implications of Structuring and Offering ShariahCompliant Investment Products

Chapter 6: ……………………………………………………………………44
Regulation and Supervision of Islamic Banks

Chapter 7: ……………………………………………………………...……53
The Interface between Islamic and Conventional Banking: Are there any
Lessons to be Learned?

2

Chapter 8: ………………………………………………………………...55
Conclusion: A Realistic Evaluation of the Workings of the Islamic Banking
Industry; A Few Sagacious Remarks

Bibliography ……………………………………………………………..59
Texts
Articles
Cases
Internet References

3

Acknowledgment

I would like to forward my utmost gratitude to a number of people, for their generous co-operation and assistance, in the course of preparing this monograph. Mr Howard Johnson for reviewing my thesis plan, Professor Bob Lee for his invaluable insight on Chapters 1-5 and finally Dr Paul
Bridges and Dr Simon Norton for their enlightening views on several issues.
I dedicate my efforts to ‘Bhaijan’, who has always been the inspiration and my guide throughout my life.

4

Preface
At present times, it would not be inappropriate to state that Muslims the world over face the dilemma that their religion, Islam, prohibits interest in stringent terms and
aims


References: 1. www.pakistanlawsite.com 2. www.sbp.gov.pk 3. www.cardiff.co.uk (for Westlaw, LexisNexis and Lawtel) 4. www.pakistaneconomist.com 5. www.dawn.com 6. www.meezanbank.com 66
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