Transformation into Islamic Banking Analytical Essay

Transformation into Islamic Banking
An analysis of how a commercial bank can become an Islamic bank.
# 129040 | 842 words | 6 sources | APA | 2010 | KE


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Description:

The paper explains the processes banks must undergo to be able to offer Islamic banking services, such as understanding the Shariah law on banking and educating their customers with the changes in the banking process. The paper reveals that Islamic banking in the global scene is facing numerous challenges, but shows how in spite of these setbacks, Islamic banking still has several advantages.

From the Paper:

"Islamic banking is a form of banking and finance whose goal is to provide "interest free services" to its clients. This is in accordance with the injunctions of Islamic law on interest( riba), which dictates the absence of interest-based transactions. As such, the foundation of Islamic banks, their dealings, transactions and approach to business, their product feature, investment decisions and responsibilities are deeply rooted on the teachings of the Shariah law. This makes a significant difference from conventional banking, which is based on "the debtor-creditor relationship between the depositors and the bank on one hand, and between the borrowers and the bank on the other" (Rahman & Ahmed, 2000). This implies that interest is a significant tool in the operation of conventional banks. The process of converting a conventional bank to as Islamic Bank is long and challenging."

Sample of Sources Used:

  • Ahmad, W. (2008). Islamic Banking in the United Kingdom: Opportunities and Challenges. Kingston Business School: London.
  • Karimi, A. Challenges facing Islamic banks. Retrieved April 21, 2010 from ..............http://www.nzibo.com/IB2/Challenges.pdf
  • Maraj, R. (2007). Challenges facing Islamic financial institutions. Manamsa: Bahrain.
  • New Horizon, (2009). IT Focus - Kuwait International Bank: from conventional to Islamic. Retrieved April 26, 2010 from ..........http://www.ibsintelligence.com/index.php?option=com_content&view=article&id=1488..........2:it-focus-kuwait-international-bank-from-conventional-to-..........islamic&catid=245:newhorizon-features&Itemid=114
  • Rahman, K. & Ahmed, M. (2000). Towards Islamic banking experiences and challenges: a case study of Pilgrims Management & Fund Board. Malaysia: Institute of Policy Studies.

Cite this Analytical Essay:

APA Format

Transformation into Islamic Banking (2010, August 27) Retrieved July 06, 2022, from https://www.academon.com/analytical-essay/transformation-into-islamic-banking-129040/

MLA Format

"Transformation into Islamic Banking" 27 August 2010. Web. 06 July. 2022. <https://www.academon.com/analytical-essay/transformation-into-islamic-banking-129040/>

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