ISLAMIC BANKING AN ALTERNATIVE SYSTEM pdf download

Islamic Banking an Alternative System

ISLAMIC BANKING AN ALTERNATIVE SYSTEM

Islamic banking is an investment and financing concept which expands globally. People are becoming more aware of the Islamic banks.

Islamic banking is different from conventional banking in most aspects, since its close tie to religion is very important.

The connections to politics and history have influenced the implementation of the Islamic banking system in the countries where the system operates.

 The dissertation is based on extensive literature review and a personal interview with a professional within an Islamic bank in Lebanon. Instead of being based on interest, Islamic bank s offer various kinds of accounts and a range of financing alternatives all complying with the Islamic Law – Shari’a.

To work according to Shari’a is crucial for the banks and their activities are controlled by a special Religious Supervisory Board. The implementation of the Islamic banking system varies to some extent between Islamic countries.

 As a result to the variations between the states’ implementation, the need for harmonisation increases as the expansion of Islamic banks continues. Several organisations work to achieve international standardisation and hannony to make the banking activities more transparent and attractive.

 The achievement of hannonisation as well as the performance of the banks is crucial for the future of Islamic banking.