The Financial Service Sector Essay

Main competitive pitch of Islamic banking is in Sharia compliant and interest free. But the real business of Islamic banking is producing profit.

From 1960s to 1980s, financial institutions used customer-centric strategy to increase customers’ loyalty and advancing their own competitive power. Commercial banks began to provide individualized products and services to customers based on their characteristics and requirements with the most convenient way. In this period, capital management services began to develop rapidly with the help of traditional loan services, investment services and consulting services. The management services are different from traditional services and they can help customers reduce investment risk and gain higher profits.

The banking industry has over the years evolved from simple to large and complex organization. They have grown from one street building into having multiple branches some of which are international. Their clients range from individual and institutions to governments and other banks. Banks do not manufacture physical things. Their work is simply services for money (Koch & MacDonald 2010). Such services include storing, lending and managing money. All people and institutions, as well as governments, need money to operate accordingly.

Bank Muscat is a public bank which industries in Finance and Insurance. The bank was founded in April 30, 1982 and it’s located in Muscat, Oman. The current CEO of the bank is AbdulRazak Ali Issa. The bank produces financial services. Such as personal banking, premier banking, corporate banking, and wholesale banking. Bank Muscat is known as the best private bank in Oman. It has assets worth US$27 billion, they also have the largest network of 149 branches, 645 ATMs and CDMs and more than 10,000 Point of Sale terminals in Oman.

Bank Muscat SAOG (known as: Bank Muscat) is a public company, listed on Muscat Securities Market since January 2007. Bank Muscat operates within the Banks sector focusing on Diversified Banks. It has 11 subsidiaries operating across Southern and Central Asia and Middle East. Bank Muscat is based in Muscat, Oman and was established in July 1982.

Besides, the company can issue shares, and hand out the dividends, or issue bonds and pay the interest; moreover, taking a loan from the bank with interest is an alternative. However, in Islamic accounting, the interest is not allowed, which prevent the company from raising the fund through last two options. Thus, the Mudaraba is widely applied in Islamic economies. Mudaraba is a kind of partnership which one party provides money to a commercial enterprise, and the funds are managed by a third party based on Mudaraba investment management agreement. For example, the depositor can authorize the Islamic bank to manage their funds, and get profit from the return on the funds invested.

It helps the bank to maintain their position in the market as Sultanate Oman leading

the First International Conference on Islamic Banking, held in Dubai in 1979, it has not been widely implemented throughout Islamic financial system (Bendjilali and Khan,1995, p. 16). It is a relatively new and very little used product available for Islamic banks. The paper claims that MMQ is more in line with Shari’ah teachings and as such should be used more by Islamic financial institutions. The study indicates that MMQ possibly has a comparative advantage for both financiers and the customer when compared with

finance companies. Provide loans mainly to small business and retail customers. Also provide lease finance. No depositors, therefore they borrow funds in the money and capital markets to finance their activities

Banking serves as an intermediary or middle man in the financial industry for payments, deposits, loans, and investments etc for a client.

List of abbreviations List of tables Acknowledgements Abstract 1. 2. 3. 4. 5. 6. 7. 8. Introduction Problem statement Objectives and hypothesis of the study Literature review Structure and performance of the financial sector in

In the UK the Financial Services Sector relies upon the systems of supervision and regulation put into operation by the government which promises to deliver the good quality service as well as security. The

Financial institutions such as banks, insurance companies and pension funds are also known as 'Financial Intermediaries'. They dominate the financial scene all around the globe. It is virtually impossible to spend or save or lend or invest money nowadays without getting involved with some kind of financial intermediary in one way or another. Although all have similar functions, yet they are different. They are as follow...

In terms of forming a limited liability company in Oman, foreign individuals or company investors need to find an Omani partner with a minimum 30% holding share where minimum OMR 150,000 ($390,000) is required as capital in the registration purpose for limited liability company with foreign participation. It is possible to establish a Limited Liability Company

Executing is the purpose of the foreign companies and they may register a branch in Oman only to execute a contract with the government or a quasigovernment body. The most important thing is registering as branch is limited to the duration of the underlying contract, but special dispensation may be given without a government or semi-government contract in terms of setting up a branch in Oman. If the activity is deemed by the Council of Ministers to be of national importance, in that case it could be allowed.