could be described as follows: a) to identify the key forms of loans available in the context of the Islamic banking system, b) to evaluate the performance of loans provided by the Islamic Financial Institutions; suggestions are also made for the potential increase of the performance of the specific financial products c) to compare these loans with the loans provided by the Western Banks, d) to locate the advantages and disadvantages of loans in the Islamic Banking System, e) to identify the effects of the global financial crisis on the rate of financing by Islamic Banks and f) to identify and analyze the role that Islamic banking can have in the limitation of the effects of recession.
The research methodology employed in this study will have two different forms: the literature review will be used in order to identify the views of academic researchers on the study’s subject; on the other hand, the empirical research will be used aiming to retrieve information on the current aspects of the study’s issues. The empirical research developed in the context of this study can be distinguished in two categories: a) qualitative research, i.e. reference to case studies; the modes of financing provided by specific Islamic banks will be presented and analyzed; b) apart from the case study analysis, a survey will be conducted in order to retrieve the views of the public on the loans provided by Islamic banks worldwide; employees in Islamic banks worldwide will be asked to state their view on the performance of loans provided by their Banks; the survey will be conducted through the Internet.
The types of loans available in the context of Islamic Banking System are specific; Iqbal et al. (2002) refers to the following types of loans: ‘a) educational loans, b) gold loans – for securing gold, and c) surety loans, which are loans against personal security of two signatories’ (Iqbal et al., 2002, p.176). In accordance with Schoon (2009) the main difference between the