An exploration of financial research methodology from a comprehensive perspective is necessary in order to develop the most advantageous context by which conclusions can be reached pertaining to this subject. Qualitative case research has a role in the financial fields, qualitative studies as well as quantitative can be understood in terms of a larger framework of research methodology spanning a range from subjective methods guiding the general direction of the quantitative data, to positivist methodologies. Either qualitative or quantitative only methods have theoretical problems and limitations in the finance and accounting fields, and it is necessary for both frames of reference to balance each other to gain a comprehensive point of view. Raw numbers are insufficient in order to produce a definitive conclusion regarding any field dependent upon human behavior and perception. To answer financial questions in terms of banking strategy for the Seychelles, there is a necessity to attain demographic and historical background information, as described in chapter 1 pursuant to a thorough methodology. Any methodology attempting to address questions of policy – as the introduction of a new Islamic banking framework would entail, must assemble factual information allowing for a greater understanding of the social and economic forces at work in the territory in question. 3.1 Research Design Regardless of whether the approach is more qualitative or quantitative as much systematization as possible in terms of the methodology is essential. With respect to the qualitative factual data used in this assignment to analyze the financial prospects of banking on the Seychelles it is helpful to employ primarily qualitative measures. A useful example underscoring the objective of this methodology is the grounded theory approach described by Holland (2001). In this form of approach there is an iterative reciprocity in terms of the relationship between the collection of the data, the analysis and subsequent theories. The researcher must analyze interviews, or in this case survey items as a way to supplement the qualitative portions of this study by identifying similarities or categories in terms of the responses. The researcher will identify separate lines of thought as expressed in the survey items included as part of this analysis in order to create the theoretical frame of reference described previously. In this method, the researcher will employ largely exploratory methods stemming from a major area of study as opposed to a pre-existing theory. The purpose of the factual data that will be assembled in addition to the survey items will create a body of knowledge from which later theories can emerge upon characterization of the proper context. Using the grounded method, the researcher does not suffer from the temptation to alter facts in order to fit a pre-existing theory; rather the data must be assembled from which a theory will emerge later. For the purposes of this analysis, the survey data will be combined with the qualitative historical and contextual information derived from demographic and economic research into the economies of countries utilizing Islamic finance systems, as compared with that of the Seychelles islands. The data becomes
3. Methodology Introduction Within finance and accounting research, there is certainly a preoccupation with the need for quantitative research and numerical documentation of data and financial fluctuations in order to form a coherent picture. Yet there are a variety of methodologies, particularly qualitative that are necessary in order to form a complete conceptual picture necessary during the course of the financial research…
Some conventional banks have integrated Islamic banking by creating subsidiaries that offer Shari’ah products. Jurisdiction’s Central Bank Acts, Islamic Financial Services Board and Auditing Organization for Islamic Financial Institutions have been created to provide framework under which Islamic Banks will operate.
Conventional insurance, however, has been a taboo for the Muslim world as the premium insurance companies offer, lack of correct knowledge by their customers and the way cost of damages has to be borne by some unconnected persons had hitherto been debated.
Why the Islamic Financial System has the Strength to Mitigate the Current Financial Crisis? The research study is an analytical approach towards evaluation of the Islamic financial system for measuring its effectiveness to mitigate the present financial crisis in the world.
After the financial crisis that has been experienced by the traditional banking industry, focus of everyone has been shifted towards Islamic banks (Willison, 2009). With the growing success of Islamic banks, number of Islamic countries have been considering to shift their banking sector to Islamic banking sector and the policies and regulations would be governed by Islamic teachings (Johnes, Izzeldin, and Pappas, 2009).
Brief Background The global financial market is one of the highly affected areas of financial stability during the emergence of financial crisis which also delayed economic developments. It has been reported that Islamic banks are not greatly affected by global financial crisis unlike the tremendous losses incurred by conventional banks in a cross-country examination.
The market for Islamic Financial products is at least USD 5 trillion. Modern Islamic finance and banking took off in 1960’s after Egypt launched a Social Bank. Initially, Islamic Finance was confined to Middle East; however, Pakistan and Sudan have tried to ‘Islamicise’ all their financial systems.
The objective of research is to examine the awareness of Muslims and non-Muslims customers and bank authorities of Islamic banking notably in Saudi Arabia and UK about the function and concept of this system through reaction toward it; to evaluate the performance of Islamic banking based on the available financial data.
In the changing format of globalization and technology, the complex structure of international, national and regional economics and finance has become a major challenge for the global entities. The traditional model of financial institutions needs to incorporate wider interests of emerging new pluralistic society.
Would Islamic financial system be able to prevent the current global financial crisis? The global financial crisis of 2008 is largely attributed to the vulnerability to risk in the capitalist financial systems and an inherent lack of discipline in its investment and lending practices.1 Islamic banking and finance on the other hand, is described as more risk averse and highly disciplined in its investment and lending policies and practices.2 Studies comparing the performance of Islamic banks and conventional banks during the 2008 global financial crisis suggests that Islamic banks were more efficient,3 more profitable or more stable.4 Rawshan argues however, that Islamic banks were largely avo