Essays on Development, Competitive and Product Innovation Analysis of Islamic Banking Case Study

Download full paperFile format: .doc, available for editing

The paper “ Development, Competitive and Product Innovation  Analysis of Islamic Banking” is an excellent variant of the case study on finance & accounting. Islamic banking is banking activity, which is consistent with principles of Islamic Shariah, and their practical application that is meant to develop the whole scope of Islamic economics. Specifically, some banking institutions call it Shariah-Compliant Finance (Nzibo, 2014). Since the Shariah, principles prohibit floating or fixed payments or acceptance of any fees or interests (usury or riba) on any loanable finance, the banks participate in the sharing of losses or profits with the borrower.

It is important to note that although Islamic principles have been applied by various historical Islamic economies at varying degrees, it is only in the twentieth century that their usages have become widely applicable in the Islamic community (Sailan & Muslim, 2009; Iqbal & Molyneux, 2006). According to the report by Ernst & Young, Islamic Banking has been rising and gaining a lot of popularity in both Muslim and non-Muslim communities. In this regard, this discussion has chosen three prominent banks in the Gulf region to analyze their development, and competitiveness and evaluate their product innovativeness.

It should be noted that the GCC countries have been accounting for about 56% of the total revenues of Islamic banks. Based on McKinsey's evaluation, it has been estimated that, by 2015, more than half of all business sectors in the GCC region will become Shariah-compliant. Nonetheless, over 20 Islamic banks in the region have grown by 20% (Khatib, 2010)Characteristics of Islamic BankIslamic banking is a banking system that is based on Islamic Shariah principles in the whole guidance of Islamic Economics.

It is found on two basic principles: prohibition of Interest collection and sharing of loss and profits between the bank and the customer. Generally, Islamic banking espouses certain features that normally distinguish it from conventional banking. The first characteristic of Islamic baking is to avoid riba (interest) (Lewis, 2013).

References

Al Hilal(2014). Al Hilal Website. Retrieved on 15 May 2014 from http://www.alhilalbank.ae/

Bashir, A. M. (2000). Determinants of Profitability and Rate of Return Margins in Islamic

Banks: Some Evidence from the Middle East. ERF Seventh Annual Conference, Amman.

Beck, T., Demirguc, A., & Merrouche, O. (2010). Islamic vs Conventional Banking. The World

Bank Development Research Group.

Faizulayev, A. (2011). Comparative Analysis between Islamic Banking and Conventional

Banking Firms in terms of Profitability, 2006-2009. Eastern Mediterranean University,

Gazimagusa, North Cyprus.

Iqbal, M and Molyneux, P 2006, Thirty Years of Islamic Banking: History, Performance and

Prospects, J.KAU: Islamic Econ, 19(1).

Islamic Development Bank, 2014, Financing Instruments, viewed 16 January 2014

Khatib, A. (2010). A radically different view. Middle East Supplement.

Lewis, KM 2013, In What Ways Does Islamic Banking Differ from Conventional Finance,

Journal of Islamic Economics, Banking and Finance.

Nzibo, Y.A. (2014). Islamic Banking: General Overview. Retrieved on 15 May 2014 from

Http://www.nzibo.com/islamic.html

Sailan Muslim. (2009). Origin and History of Islamic Banking. Retrieved on 15 May 2014 from

http://www.sailanmuslim.com/news/origin-and-history-of-islamic-banking/

World Finance. (2014). QIB spearheads innovation in Islamic banking products. Retrieved on 15

May 2014 from http://www.worldfinance.com/markets/qib-sprearheads-innovation-in-islamic-banking-products

Qatar Islamic Bank (QIB). (2014). QIB Website. Retrieved on 15 May 2014 from

http://www.qib.com.qa/en/ Amazon Publications.

Download full paperFile format: .doc, available for editing
Contact Us