The paper "Islamic Mortgage System as a Solution to Prevent Future Current Credit Crises" is a great example of a finance and accounting research proposal. This chapter will look at presenting the reason for carrying out the research and will identify the research background, the research question, the significance of the study, the limitation of the study and the structure which the research will follow. This will thereby lay the foundation based on which research will be carried out. Problem Statement The financial system has been continuously been impacted by the financial crisis which has impacted economic growth (Chapra, 2008).
Banks, whether Islamic or conventional bank is central for economic growth and identifying the different reasons which have led towards the financial crisis and having appropriate strategies which will help to reduce such crisis, is the need of the hour. There are different literature and researches available for the reason for the financial crisis but very little information is available regarding the reason which Islamic banks were affected to such an extent as a conventional bank during the financial crisis. This thereby presents a good reason for analyzing and finding out the different reasons which traditional banks can adopt from Islamic banks as Islamic mortgage system provides a solution which can help to reduce credit crisis in the future.
Understanding the manner in which Islamic banks works and following their model for mortgage system conventional banks can reduce the level of risk and ensure that their banks are able to reduce the chances of a financial crisis in the future Research Question The research study will focus on answering the following mentioned research questions Identify the manner in which Islamic mortgage system works as it helps to reduce the impact of the financial crisis? What are the challenges which the Islamic banking system is facing and the areas they need to work to reduce such challenges? Determining the manner in which interest-free banking system (Sharia principle-based) has helped the Islamic mortgage banking system to withstand a financial crisis? Identifying the manner in which Islamic banking system works in comparison to the conventional banking system? Identify the manner in which conventional banks can work according to the Islamic mortgage system so that the overall chance of a financial crisis in the future is reduced? Identifying the different reasons which helped Islamic banks to avert financial crisis to a large extent? Finding out the different areas which conventional banks can adopt from Islamic banking system so that financial crisis can be averted in the future? Developing and identification of policies and strategies which will help both conventional and Islamic banks to reduce the impact of the financial crisis? Significance of the Study The importance of the study lies in the fact that it will help to identify the manner in which Islamic mortgage bank work and is a solution to prevent future financial crisis.
This will increase the opportunity of averting a financial crisis in the future and will provide an opportunity for conventional banks to learn and work on the same model which Islamic banks follow. Since the financial crisis has become a part of the business and it impacts economic development so identifying the different areas which when worked on will help to reduce the impact of such a crisis is imperative. This study will look to focus on those areas and bring forward the manner in which Islamic mortgage banking system works which has helped them to reduce the chances of a financial crisis and acts as an example for other banks to follow.
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