Islamic Banking and Crisis

By

ACKNOWLEDGEMENT

No words can express my appreciation and gratitude to my research advisor _______ through the course of this research, Professor _____has taught me numerous values that extend well beyond the realm of _________ (Your Subject Name). His emphasis on dedication to work and his valuable and practical insights of life are some of the major highlights of my education at The University _________. To Professor _____, I say with great respect, thank you very much.

It is a great honour for me to have Professor _______ on my dissertation committee. His insightful suggestions and comments are a major asset to this research. I learned so much from Professor ______, and I will always remember him as a truly superb teacher. To Professor _____, I am greatly indebted.

I would like to thank Professor ______ for his contribution to this research. Professor _____ has provided me with essential input and guidance as an outside member of my committee. His remarks and suggestions are greatly appreciated.

I would like to thank _____________ for the support they had provided me throughout the research project.

I would like to thank _____________ for their support and help in this research.

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 the academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER 1: INTRODUCTION1

Background of the Study1

Introduction1

Purpose of the Study1

Aims of the Research Study1

Objectives of the research study2

Rationale of the Study2

Research Questions2

Research Hypotheses:2

CHAPTER 2: LITERATURE REVIEW4

Islamic Conceptions4

Islamic Banking4

Islamic Banking System5

Global Economic and Financial Crisis6

Crisis and Islamic Banks7

REFERENCES9

CHAPTER 1: INTRODUCTION

Background of the Study

Financial crisis has become the most significant issue for the banking sector in the modern era, as recent financial crisis has changed the entire situation of the banking sector. However, the emergence of Islamic banking has diluted the impact of financial crises as the Islamic banking system all over the world is not being immensely affected by the financial crisis, that makes the policy markers to rethink on their banking system and they also have started to promote Islamic banking system. The research study is based on the system of Islamic banking. 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.

As the Islamic banking has introduced new accounting and finance systems to the banking industry, the credit risk can be raised to a significant level. In the Islamic banking, the concept of interest free banking is of prime importance that reduces the level of profits for the banking sector. However, this system of interest free banking has been introduced in order to avoid the credit risk in the financial markets.

Introduction

Financial intermediaries facilitate the investors to provide finance according to their requirements by considering the risks and returns attached to different ...