Banking

Challenges facing Moslem banks By Abdul Jabbar Karimi ISLAMIC banking industry has been want for the last over two decades to extend its outreach to bring it at least to the level of established banking. But the absence of Shariah-compliant fill in judice framework needed to make interest-free banking acceptable (and create bright financial institutions) is the major snag behind its low perceptiveness in the financial market. It is the time to take stock of challenges stay by the Muslim banks as they need a shout of load-bearing(a) institutions/arrangements to perform functions which be being carried out by various financial institutions in the conventional framework. Attempts should be do to modify the existing structure to provide better products and guess service at heart the ambit of Islamic righteousnesss. several(prenominal) of the almost important challenges facing the Islamic banking industry argon place as follows. Legal Support: Islamic law off ers its hold framework for execution of moneymaking(prenominal) and financial contracts and transactions. Nevertheless, commercial banking and club laws appropriate for implementation of Islamic banking and financial contracts do not exist. Islamic banking contracts are treated as buying and sell properties and hence are taxed twice.

The commercial, banking and company laws contain nutrition that are narrowly defined and prohibit the scope of Islamic banking activities within conventional limits. It is necessary that special laws for the introduction and institutionalize of Islamic banking be put in place. The lawful framework of Islamic banking and fin! ances might include the following: a. Islamic banking courts: The contest cases of the Islamic banks are subject to the same sound governance and are dealt with the same court and judge as the conventional one while the nature of the legal trunk of Islam is tout ensemble different. To ensure a proper, speedy and supporting Islamic legal system, amendments in existing laws, which are abominable to injunctions of...If you want to take a full essay, order it on our website: OrderCustomPaper.com

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