Week one Assignment

Introduction3

Discussion3

Islamic Banking and Financial System3

Ethical Financial Integrity5

Conclusion6

References7

Week one Assignment

Introduction

This assignment has focused on two major problems in terms of challenges; financial managers are facing one is globalization of Islamic banking and financial system with respect to its influence in adaptation in different countries esp. Western. The second major challenges discussed in this assignment include the ethical financial integrity and the challenge for financial managers to maintain the ethical financial integrity in terms of secure, fair, and ethical reporting of information in the financial statements.

Discussion

Islamic Banking and Financial System

The section illustrates the other major challenge financial managers' experience when going for the cross-border business and to ensure the handsome pie of market share. The majors challenges according to the article that Islamic banking and financial system's application face include strategic alliance among systems, Islamic Central Banks, Technological Environment, and the membership of trading blocs (Ahamad et. al., 2012). The scope and growth of the IBF system in the OIC countries is not as much popular and lack the credibility of long term growth in these regions. This is based on the facts that the combined GDP of OIC countries does not even came near to the 12% of the GDP of USA. Moreover, the top seven countries including the USA, Japan, Germany, China, France, UK and Italy constitutes 65% of the world GDP. Therefore, the need for IBF and the finance managers is to shift the focus to these countries because of its immense potential and need to open the Islamic banking window in their conventional operations, which is further supported from the other research discussed below.

Moreover, the challenge to get the market leadership esp. in the banking industry requires tackling the different challenges in order to survive in the sector. Since, the sector requires the conventional banks to open the IBF system window in their operation. However, the major problems for financial managers in this success road include strategic alliance among systems, Islamic Central Banks, Technological Environment, and the membership of trading blocs. Islamic banking and financial system has been growing and being adopted by various systems as an alternative to interest-free banking. Since, the financial managers are to work on the different innovative products to offer the consumers. Yet, the mangers have been successful in every part of the world to offer the various products and services in the commercial banking sector. However, the increasing competition and ...