Special Issues in the Islamic Banking and Finance

By

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.

Signed __________________ Date _________________

ABSTRACT

The research study is based on the special issues in the Islamic banking system. The Islamic banking system has emerged as the new system that has presented solutions to so many problems that rose due to the financial crisis in the financial sector of western countries. The special issues that have been mainly highlighted by the research study are the riba free banking and the profit loss sharing within the Islamic banking system. The credit risk has also considered being an important issue among all the other issues highlighted within the past literature with respect to the Islamic banking system. These issues have been highlighted by the research study after analyzing various online web sources and research journals. These issues have been discussed in the research findings section of the study and different charts have been shown in order to comply with the results of the study. The economic system is an imperative tool available to the governments for enhancing the prosperity of the countries. The Islamic banking system is different from the conventional banking system in terms of its financial operations. The main reason for the adoption of the Islamic banking system by the western countries is its effective operations during the financial crisis. The countries that have been working according to the operations of the Islamic banking system have proved to face low or no loss at all. Thus the financial crisis that hit the whole world sometime back has led the western countries to adopt financial measures and the Islamic banking system has provided all the solutions to these problems.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the research study1

Aims of the Research Study2

Objectives of the research study2

Methodology3

Significance of the Research Study3

Subject of the Research Study5

Structure of the Research Study6

CHAPTER 2: LITERATURE REVIEW9

Past Literature on the Islamic Banks9

Existence of the Islamic Banks10

Functions of Islamic Banks11

Difference between Islamic and Conventional Banking Systems12

Impact of Islamic Banking system on Bangladesh Economy14

Impact of Islamic banking system on SME sector of the World Economy16

Issues of Islamic Banking System18

Riba (Interest) and Gharar (Risk)20

Measuring Efficiency of the Islamic Banking System21

Global Economic and Financial Crisis24

Prohibitions in the Islamic Banking System26

Kinds of loans29

REFERENCES31



CHAPTER 1: INTRODUCTION

Background of the research study

The research study is based on the issues of Islamic banking system. In today's world, the researchers and scholars are taking great interest in the Islamic banking because there is huge difference between the Islamic and Conventional banking systems. The Islamic banking system is based on the Islamic economics according to which state ...