Special Issues in the Islamic Banking and Finance

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ACKNOWLEDGEMENT

I would like to thank my supervisor for supporting me throughout my project and giving his valuable suggestions. Finally thanks to all my friends and family for their utmost support and inspiration.

DECLARATION

It is to declare that content of this thesis/dissertation presents my [type your full first name and surname here] independent work, which is entirely the result of my personal efforts, and has not been submitted by anyone previously. Additionally, the thesis/dissertation provides my personal reflection on the topic and does not include the University's concepts.

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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 CONTENT

ACKNOWLEDGEMENTII

DECLARATIONIII

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 II: Literature Review6

Chapter III: Methodology7

Chapter IV: Discussion and Findings7

Chapter V: Conclusion8

CHAPTER 2: LITERATURE REVIEW9

Past Literature on the Islamic Banks9

Existence of the Islamic Banks10

Functions of Islamic Banks10

Difference between Islamic and Conventional Banking Systems11

Impact of Islamic Banking system on Bangladesh Economy13

Impact of Islamic banking system on SME sector of the World Economy14

Analysis of Islamic Banking System15

Issues of Islamic Banking System16

Riba (Interest) and Gharar (Risk)17

Measuring Efficiency of the Islamic Banking System17

Global Economic and Financial Crisis19

Prohibitions in the Islamic Banking System22

Kinds of loans24

Examples of Islamic Banking System25

CHAPTER 3: AIMS AND METHODOLOGY27

Aims of the Research Study27

Method of Analysis28

Procedure of Primary and Secondary Data Collection29

Reason for adopting Qualitative and Quantitative methods31

Rationale for a Qualitative Study31

Rationale for a Quantitative Study31

Data Collection ...