EVALUATION OF ISLAMIC DEPOSIT PRODUCTS

Evaluation Of Islamic Deposit Products

Abstract

The purpose of this research is to investigate opportunities of development and growth as well as main challenges to Islamic banking in UK. The UK is hub of Islamic banking and contains importance in Islamic financial sector due to its fast growing Muslim population. Islamic banking is facing some great challenges in UK because financial system is more favourable to conventional banking.

A qualitative study was carried out which involved nine in-depth interviews with three different groups of people such as Banking Authorities, Customers of Islamic banking and non-Customers of Islamic banking. The interviews are based on fundamentals of Islamic banking, basic understanding to Muslim community, information system and growth opportunities related to products and market development as well as difficulties and challenges in way of Islamic banking in UK.

The research findings show that there are greater opportunities in UK for development and growth of Islamic financial system because Muslim community is eager to take financial products and they are willing to spend their lives according to their religion. There is need to educate Muslim community toward Islamic financial products; service providers need to improve information system within communities and Islamic banking institution is need to work hard for survival and compete with conventional banking system in sector of regulations and supervisions.

Table of Contents

Abstract2

Chapter 17

1 Introduction7

2 The Problem12

3 Aims And Objectives14

3.1 The Structure Of The Dissertation16

Chapter 218

4 Literature Review18

4.1 Islamic Finance18

4.1.1 Scheme18

4.2 The Manzil Ijara Home Hire Purchase Plan20

4.3 The Success of the Manzil Scheme21

4.4 Fund Management Possibilities22

4.5 Introduction Of Islamic Banking24

4.6 The Principles of Islamic Banking27

4.7 The Fundamental Of Islamic Banking And Finance30

4.8 Compatibility Of Islamic Banking With Conventional Banking32

4.9 Scope Of Islamic Banking In The UK34

4.10 Development Of Islamic Banking In The UK39

4.11 Challenges Of Islamic Banking42

4.12 Conclusion45

Chapter 346

5 Methodology46

5.1 Purpose46

5.2 The Paradigms And Methodologies46

5.2.1 Reason for Chosen Qualitative Research48

5.3 Research Method49

5.3.1 Reason for Chosen In-Depth Interviews50

5.4 Data Sources50

5.4.1 The Primary Data51

5.4.2 The Secondary Data51

5.5 Data Collection Methods52

5.6 Limitation Of The Study53

Chapter 455

6 Results and Discussions55

6.1 The Basic Understanding Of Islamic Banking55

6.1.1 Concept Of Islamic Banking The Objective Behind Of Concept Of Islamic Banking Is Whether The Muslim Community And The Banks Have Clear Ideas And Understanding About The Fundamentals Of Islamic Bank.56

6.1.2 Difference Of Islamic And Conventional Banking The Objective Behind Of This Research Whether Of Muslim Community Knows The Difference Of Islamic And Conventional Banking System And Its Practice?59

6.1.3 Sha'riah Compliance The Objective Behind Of This Research Is To Know Whether Islamic Banking Is According To Islamic Sha'riah Law And The Role Of Islamic Scholars For Its Development.62

6.2 Development and Growth64

6.2.1 Products Development The Objective Is To Find Out Potential Of Islamic Banking Products Development And Customer Satisfaction Level With Its Tools And Products.64

6.2.2 Market Development/ Customers And Institutions The Objective Is Focussed On Whether Islamic Banking Has A Potential To Perform Active Role In Uk Financial Market.67

6.2.3 Enhancing The Investment The Objective Behind Is To Look Whether Islamic Banking Is Able To Enhance The Investment Opportunities In Uk ...