Islamic Bank and Traditional Bank Two Different Things
Universiteti "Aleksander "Moisiu Durres, Fakulteti I Biznesit
The quick growth of Islamic banking products and services in the past four decades is undisputable in financial world today. Recent figures show that Islamic banking assets with commercial banks globally standing at $1.7 trillion in 2013, suggesting an annual growth of 17.6 percent over last four years (World Islamic Competitive Report, 2013). Although the development of Islamic finance is still young compared to conventional, but by looking at its current asset value, there is a big hope that it will continue to experience spectacular growth more than conventional finance in the future.
In promoting justice and fairness involved in any transactions has captured financial institutions in many countries, and not only limited in Muslim countries, to transact many of its financial product and services based on Shariah principles. However, we know little about the development of financial banking in the west region and even such studies were undertaken, the scope of investigations are limited by focusing only on the challenges, opportunities, problems and regulations of Islamic banking faced in Western countries where each are separately studied. Thorough investigation on the development of financial banking that covers all facts such as development of financial institutions and what type of product they offered, regulation reforms, government support level, the performance market share, asset growth and etc., as well as problems, challenges and the future of Islamic finance, is somewhat untapped in west region. Realizing this, therefore, left a significant room for us to discuss in the current paper and we have our convictions that this study is crucial to facilitating better understanding of what lies in the between of Islamic banking towards its development since consumer acceptance, regulations, profitability and other relevant issues vary significantly across market and what more in Western countries.
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