Banking

Challenges facing Moslem banks By Abdul Jabbar Karimi ISLAMIC banking industry has been try 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 deputise judice fashion model needed to make interest-free banking acceptable (and create intelligent financial institutions) is the major snag behind its low acumen in the financial market. It is the time to take stock of challenges remain by the Moslem banks as they need a severalise of load-bearing(a) 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 adjudicate service at heart the ambit of Moslem law of natures. some(prenominal) 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 mercenary 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 furnish 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 class period of Islamic banking be put in place. The lawful frame work of Islamic banking and finances might i! nclude the following: a. Islamic banking courts: The contest cases of the Islamic banks are subject to the same judicial governance and are dealt with the same court and judge as the conventional one while the nature of the legal carcass of Islam is tout ensemble different. To ensure a proper, speedy and supporting Islamic legal system, amendments in existing laws, which are detestable to injunctions of...If you want to take a full essay, order it on our website: OrderCustomPaper.com

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