StudentShare solutions
Triangle menu

Islamic Banking Operations and Instruments - Research Paper Example

Nobody downloaded yet

Extract of sample
Islamic Banking Operations and Instruments

Indeed, culture has been traditionally related to society and its intervention in economic life has been rather unexpected. Islamic banks follow specific rules. These rules mostly reflect the Islamic law, also known as Sharia law. Following these rules is considered as obligatory for the Islamic financial institutions. However, it is possible for additions to be made, according to the needs of the local market and always within specific limits, as explained below. The differences of Islamic banks from conventional banks, meaning the Western banks are many. These differences are analyzed in the sections that follow. The paper focuses on all aspects of Islamic banking, including the principles and types of their daily operations but also the instruments that these financial institutions use for aligning their activities with the rules of the Islamic law. The review of the literature published in the particular field has led to the following assumptions: a) the operational rules of Islamic banks are rather difficult to be implemented and monitored; it is possible for this reason that failures are not avoided but they are kept at rather low levels, if compared to the rate of failures of the western banks, b) the Islamic banking system has a significant advantage compared to the conventional banking system: it is not based on borrowing but rather on deposits. This fact makes Islamic banks more capable of facing strong financial crises. The lack of severe failures in Islamic banks worldwide during the recent recession of 2008 proved that the specific characteristic of Islamic banks is a key element of their competitiveness; c) the performance of Islamic banks may not reach the high levels of performance of western banks. However, this fact should not cause worries. More specifically, the high financial status of western banks is often the result of extensive borrowing by organizations operating at state level, meaning especially the Central Bank of each state. Securing funds for expanding their activities and for supporting their financial projects, western banks often give the impression of increased power towards financial institutions of different characteristics, such as Islamic banks or building societies. Still, if their financial statements are carefully reviewed then it is made clear that the level of their performance is actually low, even if their cash flow is high because the level of their liabilities can be significantly higher compared to their assets. The paper has been divided into three main sections. In the introductory section the key elements of the issue under discussion are presented. The various aspects of the paper’s subject are analyzed in the second section which has been divided in sub-sections so that each thematic unit is made clearer. A conclusion is provided aiming to summarize, as possible, the findings of the literature review, as presented analytically in section 2. It should be noted that the particular subject has been chosen mostly because of the significant expansion of Islamic banking as a mode of banking contributing in the stability of the economy and the avoidance of major economic turbulences. 2. Islamic banking – ...Show more

Summary

Islamic Banking Operations and Instruments 1. Introduction The structure and the operational rules of banking institutions are depended on their needs and resources but also on the local ethics and economic/ political trends. For example, in countries where emphasis is given on borrowing as means for covering personal and business needs, the banks and other financial institutions established locally would be able to respond to the above trend…
Author : katharina20
Islamic Banking Operations and Instruments essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Islamic Banking Operations and Instruments"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Differences between Islamic Financing Methods and Conventional Financing Methods
The research presents a thorough analysis of the basic difference between Islamic and conventional financing methods through literature analysis and effective research methods. The primary research collected from respondents helped in understanding their views and opinions on Islamic and conventional financing methods.
29 pages (7250 words) Research Paper
Financial markets subject
Conclusion Brief Introduction on the Global Financial Crises (2007-2009): The Global Financial Crises of the 2007 to 2009 has been regarded as one of the most severe financial downturns in the history. Following the footsteps of the Great Depression of 1923 it was termed as The Great Recession due to the magnitude of the economic disruption caused by it.
12 pages (3000 words) Research Paper
Muslim Australians in Islamic Banking
The author has under taken a survey with a sample of 300 Muslim Australians who were asked to answer a questionnaire with questions relating to Islamic banking and the respondents' willingness to purchase profit-and-loss sharing Islamic banking products. As the paper progresses, the author gives a brief history and overview of the Islamic financing system, explaining very clearly, the different terminologies used and the concept behind it.
5 pages (1250 words) Research Paper
Islamic Banking and capitalism
Finally, globalization has had an impact on financial services industry in the same way it has impacted on everything from manufacturing to intellectual property. However, there have also been other changes in the industry
8 pages (2000 words) Research Paper
Problems around the use of diminishing Musharaka in banking finance and search for patricidal solution
Islamic banking is guided by the Islamic laws which prohibit the collection and payment of interest. There are various similarities and dissimilarities between the traditional banking and the Islamic banking
20 pages (5000 words) Research Paper
Islamic finance
The Islam population across different parts of the globe encouraged the popularity of financial transactions based on the principle of Sharia in Islam
10 pages (2500 words) Research Paper
Stability between Islamic and Conventional Banking In Relation To Customer Confidence
Besides, it has been also observed that during economic downfall IFIs do not lose their stability rather they have grown rapidly as can be evidenced from the global financial crisis. Moreover, IFIs have also maintained the risk factors efficiently.
9 pages (2250 words) Research Paper
- ISLAMIC BANKING AND FINANCE
Islamic finance is structured in a manner that ensures mutual benefits between debtors and creditors. Investment in the Islamic finance is based on the stock market and the real estate. Sukuk have emerged as the most
8 pages (2000 words) Research Paper
Forecasting key financial variables in Shariah Based Financial instruments
) function, a base historical data considering 12 months (n = 12) was quantitatively forecasted to predict the performance of the indices for 11 years. Results Evaluate that 3-5 year investments were more reliable than 7-10 year investments. Additionally, using benchmarking
12 pages (3000 words) Research Paper
Islamic finance
Secular Islamic modernists and historians view Islamic banking as a recent situation whereas revivalists view it as old as religion as its principles were derived from the Quran. Early
2 pages (500 words) Research Paper
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment