Islamic Banking and Finance

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this research study, we have analyzed the different views about the Islamic banking and finance form global perspective. The study undertakes various perspectives that the Islamic Banking and Finance has introduced in the banking sector. The study not only provides the qualities of the Islamic banking but its flaws as well. The methodology, timetable and the conclusion have also been described in the research study. The method that has been adopted is secondary and mostly taken form the online sources.

Table of Contents

Chapter 1: Literature Review2

Advantages of Islamic Banking System2

System of Islamic Banking and Finance3

Flaws in Islamic Banking and Finance4

Chapter 2: Research Objectives5

Research Questions5

Main Objectives5

Chapter 3: Methodology7

Literature Search7

Search rationale8

Critical Appraisal tool8

Appraisal limitations8

Timetable9

Chapter 4: Conclusion10

References11

CHAPTER 1: LITERATURE REVIEW

In the literature review section, past studies are taken into account so that on the basis of such studies, the topic of the research study can be analyzed from every respect. There have been conducted several studies in the field of Islamic Banking and Finance that explains different perspective of this new system (Samad & Hassan, 2000, 7).

Advantages of Islamic Banking System

According to Yudistira (2004), the efficient system of Islamic banking and finance has attracted many banks to adopt this system and minimize the risk of financial credit. The banks that have adopted the Islamic banking in its banking operations are one of the most renowned banks in the world. These are Citibank, HSBC, Barclays and Standard Chartered (Payne & Macarty, 2002, 331).

Jobst, Kunzel, Mills and Sy (2007) have also conducted the research about the Islamic banking system and concluded that the system facilitates the banks to have mergers outside the country in order to access the foreign markets easily (Jobst, Mills & Sy, 2007, 145).

The research study conducted by Hassan and Lewis (2007) concludes that the Islamic banks have to remain concerned about the Shariah principles in order to conduct its operations effectively and efficiently. Their study also concludes that the Islamic banking system remains contentious because of the difference in their financial reporting system, conventions and practices. The study also undertakes that the goals of Islamic banking system are different from the conventional banks (Hassan & Lewis, 2007, 151).

However, the primary goals of the early Islamic banks were not that of profit or maximizing efficiency. The first Islamic bank started its operation in 1950's in Egypt. The new structure of the Islamic banking system has been adopted in the 1980's when the growth of the oil rich Middle Eastern countries accelerated ...