Conventional vs islamic banking research proposal

Definition of islamic banking and conventional banking

What factors influence bank assessments? Uzair l , Al-Arabi l and Irshad l were the pioneers of those invoked the principle of mudaraba based on Shariah though at various levels. Other than presenting well-thought-out ideas, the early writers tried to think in this regard Qureshi l, Ahmad l What are the various important factors considered in this criterion Profit and risk sharing? One of the major challenges facing Islamic banking is the fact that it is considered by most of non —Muslim customers as faith based banking practice. It will also provide information on how the clients are benefiting from such system like those who are in conventional banking and how the banking sector is benefiting. This has led to create a tremendous demand for Sharia products. Overall performance of the banking industry in Tanzania is very positive where the banking industry remained adequately capitalized with total capital recording an increase of It is needed to analyze and evaluate Islamic banking in relation to the current crisis in Non-Banking financial system. AlArabi proposed that Islamic banking avoids derivative trading. This might be one of several issues the customers do not understand.

It will also give a concise picture of issues related to risk sharing and profit sharing idealism. Basic concept of Islamic banking is far different from Non Islamic banking that protects the Islamic banking from economic crisis in comparison to Non Islamic banking.

Sharia The Quran, Surah 2, Virse prohibits the payment or acceptance of interest fees for loans of money Riba, usuryfor specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles Haraam forbidden BOT, Professor Badr-El-Din Ibrahim has argued just how valuable Islamic financing can be in supporting small businesses, from his experience of Sudan Ibrahim, So, due to this difference, project performance handling becomes a difficult issue for Non Islamic banking.

What steps have been taken in consideration to risk sharing in this current economic scenario? Profit and risk sharing is not followed in non Islamic banking that pose a challenge to this form banking during economic crisis.

islamic banking vs conventional banking

The funding structure was mainly composed of deposits which accounted for Apart from that also the study will provide information on impact of such banking system on the economy of the country since we know that Tanzania is poor country and how such system can help in improving an economy and standards of living of people.

Hasan argued that in Islamic banking investment account holder is treated equally like shareholder, on the other hand, in Non Islamic banking; depositors are paid before the shareholders.

How the profit or loss is shared by the borrower and lender in actual sense? In the conference of foreign ministers of Muslim countries decided to establish the Islamic Development Bank with the aim of fostering economic development and social progress of Muslim countries in accordance with the principles of Shariah.

Islamic finance project topics

Contrary to this, derivative trading is assumed essential in Non Islamic banking. Return on assets was 3. This has been accomplished through the mobilization of financial resources as well as by increasing competition in the financial market and by enhancing the quality and efficiency of credit allocation Tanzania Invest, Dusuki argued that Islamic banking is considered as a justified and ethical practice of financing that if used effectively can handle economic crisis. What are the main areas of activities monitored in this situation? Ringo, 1. Profit and risk sharing is not followed in non Islamic banking that pose a challenge to this form banking during economic crisis. Local banks primarily service local customers while foreign banks tend to operate as subsidiaries of large groups, such as Citigroup and Barclays, using strategies oriented to the international market. The Tanzania banking sector embarked on a plan for financial liberalization in in order to sustain its economic growth. Therefore, the data is in the form of numbers and statics Fowler, Also it is very important to make an evaluative analysis of the Islamic financial institutions in order to check the practicality of the interest-free and risk-sharing idealism in actual day-to-day functioning of the system. What steps have been taken in consideration to risk sharing in this current economic scenario? What factors influence bank assessments? What is the current position of Islamic banks in UAE?
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Proposal a study on comparative performance of islamic and conventi…