The purpose of this study is to highlight the differences between the conventional financing methods and Islamic financing methods. The growing stature of Islamic financing methods in different parts of the world has offered different options to customers. It needs to be mentioned that Islamic financing methods are different from the conventional financing methods in terms of interest and profit elements. However, very few people are aware of that and often consider Islamic financing methods as similar to conventional financing methods. The study aims at highlighting the basic difference between these two financing methods along with analysing the overall importance and significance in the economic environment. The research also highlights the significance of the study in the current business and social environment. There is no doubt that Islamic financing methods are driven by religious teachings and preaching while conventional financing methods are based on modern and practical elements of the economic environment like earning profit for every investment. The research encompasses a thorough analysis of differences between Islamic and conventional financing methods, assessment of advantages and disadvantages in the economic environment and preference of customers driven by religious issues and personal proclivity towards the financing methods. Financial institutions are often considered as the heart beat of any nation and smooth operation of these institutions often flourishes the perfect balance between the demand and supply of funds. There are a number of banks having different styles and perceptions of operating in a particular business and social environment. Islamic capitalism was based on Islamic principles where interest was prohibited in every sense. Islamic capitalism can be traced way back in 8-12th century but this has very little significance to this study. The primary purpose of this study is to highlight the differences between the conventional financing methods and Islamic financing methods. The growing stature of Islamic financing methods in different parts of the world has offered different options to customers. It needs to be mentioned that Islamic financing methods are different from the conventional financing methods in terms of interest and profit elements (Hassan, Kabir, Lewis, (2007). However, very few people are aware of that and often consider Islamic financing methods as similar to conventional financing methods. The study aims at highlighting the basic difference between these two
Cite this document
(“Differences between Islamic Financing Methods and Conventional Research Paper”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/3556-the-differences-between-islamic-financing-methods
(Differences Between Islamic Financing Methods and Conventional Research Paper)
“Differences Between Islamic Financing Methods and Conventional Research Paper”, n.d. https://studentshare.net/finance-accounting/3556-the-differences-between-islamic-financing-methods.
Cited: 0 times
The study revealed that few respondents are aware of the difference between these two financing methods and often prefer them as per the preference. In case of Islamic financing methods, there was a difference of religion attachment that made customers buyers and users of those financing methods. …
non-Islamic countries, with a focus on the situation in Australia. The issues discussed include what Christian people think about the provision of loans based on Islamic principles, the concerns raised about the sources of funds and how the income is utilized, why it is called Islamic finance and not humanitarian finance for example, and the perception that Islamic bankers will be biased against non-Muslims.
This is especially significant due to its timing, with the Islamic financial movement appearing in an era of the wider Islamic resurgence, accompanied by moral implications that characterize the Islamic approach to finance, banking and money (Sait & Lim 73).
But, as scientists and economists struggle to devise ways of bringing back the lost balance, companies are finding excuses to fire excess employees and laying off its workforce at a fast pace to keep their costs low. This has led to huge unemployment in even the most developed countries let alone the underdeveloped.
It is the responsibility of every citizen to contribute to the development of a country. This can only be done when they are healthy. The theory of human capital asserts that healthy human beings are capable of contributing towards
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.
ase of bankruptcy, a company may have much difficulty to access financing from the traditional sources like loans and investments because the external funding sources like banks and other financial institutions often tighten their credit facilities when providing loan to the
Financial ratios will extensively be used in the research and will be clustered into profitability and asset quality ratios.
The past years have not only been characterized by uncertainties on accurate operational structures of
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