Banking

Challenges facing Moslem banks By Abdul Jabbar Karimi ISLAMIC banking industry has been judge for the last over two decades to extend its outreach to bring it at least to the level of established banking. But the absence of Shariah-compliant submarine judice cloth needed to make interest-free banking acceptable (and create clever financial institutions) is the major snag behind its low discernment in the financial market. It is the time to take stock of challenges endure by the Muslim banks as they need a establish of encouraging institutions/arrangements to perform functions which be being carried out by various financial institutions in the conventional framework. Attempts should be do to modify the existing structure to provide better products and weed service at heart the ambit of Moslem natural laws. about of the almost important challenges facing the Islamic banking industry be place as follows. Legal Support: Islamic law offers its hold framework for execution of commercialized and financial contracts and transactions. Nevertheless, commercial banking and club laws appropriate for implementation of Islamic banking and financial contracts do not exist. Islamic banking contracts are treated as buying and sell properties and hence are taxed twice.

The commercial, banking and company laws contain provender that are narrowly defined and prohibit the scope of Islamic banking activities within conventional limits. It is necessary that special laws for the introduction and usage of Islamic banking be put in place. The lawful framework of Islamic banking and finances mig ht include the following: a. Islamic banking! courts: The contest cases of the Islamic banks are subject to the same profound governance and are dealt with the same court and judge as the conventional one while the nature of the legal corpse of Islam is tout ensemble different. To ensure a proper, speedy and supporting Islamic legal system, amendments in existing laws, which are discrepant to injunctions of...If you want to take a full essay, order it on our website: OrderCustomPaper.com

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