Literature Review On Islamic Banking

Becoming an expert in Islamic economics and finance field is one of my long-term goals in life. I started to organize and made a plan towards achieving that dream since senior high school. The concern towards Islamic economics and finance concept, and its application for society and the country began when I was reading a book entitled Islamic banking-theory and practice. After finishing reading the book, my interest in Islamic economic and finance topics rose and strengthen my own determination to become the expert of Islamic economics and finance. The main principle of Islamic economics and finance which offers the just and ethics in economic activity, poverty alleviation through income distribution mechanism, and prevention of economic and

An Islamic financial institution such as financial banking has been established before two or three decades ago in the aim to provide satisfactory financial facilities to the interested parties as compared to conventional banks. In 1974 Dubai Islamic bank which is the first Islamic commercial bank was established and later Islamic Development Bank (IDB) has been established in 1975 (Hennie and Iqbal, 2008).

From the year 1970 until now, more than 500 Islamic financial Institution have been established worldwide which include 300 Islamic banks. Currently, Islamic financial institution are operating in 75 Muslim and non-Muslim countries.

Most banks have created a separate entity or subsidiary to earn profit from the growing Islamic banking sector. (Parker, 2011) (Ernst and Young (E&Y), 2014) in their latest World Islamic Banking Competitiveness report (2014), shows the assets of Islamic banks grew at an average rate of 17% per year between 2008 and 2012. This is two to three times faster than the rate at which conventional banks grew over the same period. Bank Muamalat provides a full range of Islamic financial services through its 59 branches nationwide. It has a market share of 4.2% and 5.0% of the domestic Islamic banking sector's gross financing and total deposits segments respectively as at end-March 2014. The bank's annual financing growth of between 8% and 15% was mostly lower than the Islamic banking industry's growth of above 20% per year in the last five years. (The Star-Business News,

Islam is the world’s second largest religion with over 1.65 billion followers, which constitutes 24% of the world’s population (Kettani, 2010). Islam is a religion that encompasses all aspects of a Muslim’s life, from issues of an ethical, social and civil nature to economic and legal matters. In this way it is quite different to the secular view normally held in the West, which separates business decisions

Aljasser and Sasidhar (2013) stated, “in Saudi Arabia, both traditional banks and women-only banks function in parallel” (p. 9); however, men and women have separated buildings. This study will investigate female Saudi users’ perceptions toward online banking in Saudi Arabia. Statistically, this research will identify the factors that influence Saudi female users to adopt online banking. Online banking services are beneficial for the consumer; it offers remote electronic services for users (Wischnevsky & Damanpour, 2003). A convenient environment to do their transactions through online banking website (Montazemi & Qahri-Saremi, 2015). Also, online banking services can be used either through computers or smartphones (Sukkar & Hasan, 2005; Abdalkrim & Khrais, 2013; Beadnell, 2014).

The research data was collected over six months to June 2009. The researcher chose the survey as the appropriate research design for the study, and as such, questionnaires and interviews were used as research instruments. Some unclear or hanging issues in the questionnaires were clarified in interviews. A sample of 10 commercial banks randomly chosen was used in this analysis. Twenty questionnaires were used to gather data with two for each commercial bank chosen. A total of 10 interviews were held with the heads of credit or senior managers from those banks. The questionnaire had 12 short questions designed for the bankers and or senior managers from those banks so that they would not have a difficulty in answering questions. The first two questions constituted the respondent profile. The two questions that followed formed the administrative section where the research was obtaining information about the financial institution. Question five up to the end of the questionnaire formed the main body from which the crucial data for the research was

The banking industry also involves the practice of offering varied products which are necessary to ensure that they are able to maintain the advantage in a highly competitive field and the globalization has brought in different players who are vying for the same number of customers and this forces the banks and financial institutions to look for various avenues to meet the customer needs. However, it needs to be understood that the Automatic Teller Machines (ATMs) had the most penetration in the environment in comparison to other measures like phone banking, mobile banking, and internet banking. There has been an exodus of offers with which the banks have penetrated in the economy and this sea change has been made possible by the availability of technology. However, there is a still a percentage of customers who would believe in the concept of conventional banking in comparison to the modern banking methods which are confusing and at times intrusive for the conventional customer who would still rely on the bricks and mortar banking system which works on hard physical currency being transacted over the counter. (Yaha and Laura, 1990)

We conduct a raft of additional tests to ensure the robustness of our findings. First, our sample consists of Islamic banks, commercial banks and dual banks, thus to ascertain how MLG work among the three categories, we re-run equation (1) by separating the sample to three sub-samples: Islamic banks (IBs); commercial banks (CBs); and dual banks (DBs). The results reported in models 2, 3, 4 in Table 6 and models 11, 12 and 13 in Table 7 respectively. The results are basically the same with slight different in the coefficients significant. Nevertheless there is negative impact of GOWN on risk disclosure however this relation is insignificant. Also the results show the FOWN and CC has more impact in IBs rather than CBs and DBs. Finally, the

This study examines the principles and criteria Islamic banking operates in providing their financial services which make different from those of conventional banks.

Islamic financial institutions are growing faster all around the world. Most in Muslim countries, conventional and Islamic financial institutions exist side by side, interacting with one another. The development of Islamic financial institutions has the potential to play a leading role in serving the Muslim Ummah and contribute towards socio-economic development of Muslim countries in conformity with Islamic sensibilities.

The research is focused on what are the customer’s perceptions about internet banking and what are the drivers that drive consumers. How consumers have accepted internet banking and how to improve the usage rate were the focus of research area in this study.

The paper will analyse and measure the performance of Islamic banks in comparison to conventional banks. The performances will be measured over a 5-year period from 2009 to 2015. In comparing Islamic and conventional banks, profitability and liquidity will be examined.

Research Aim: The aim of this paper is to identify those factors which customers preferred in the selection of Islamic bank in Pakistan. These factors or preferences are such as Shariah compliance, Quality and Attractiveness of Offerings, Friendliness of bank personnel, Cost and benefit analysis and Awareness. These factors are in the customer’s mind in the selection of Islamic bank.

On 1 August 2013, the Prime Minister unveiled the Malaysia International Islamic Financial Centre’s new brand ` Malaysia: World’s Islamic Finance Marketplace’. It promotes the rapidly expanding connectivity of Malaysia’s Islamic financial institutions with the global banking community. A robust financial infrastructure will enable better cross-border multi-currency transactions. In conjunction with the launch, the enhanced MIFC portal was also rolled out. Major enhancements include Islamic finance news feeds, live market data, thematic analyses and