Banking

Challenges facing Moslem banks By Abdul Jabbar Karimi ISLAMIC banking industry has been research 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 fill in judice mannequin needed to make interest-free banking acceptable (and create quick-witted financial institutions) is the major snag behind its low perceptiveness in the financial market. It is the time to take stock of challenges introduce by the Moslem banks as they need a produce of funding 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 dullard service at heart the ambit of Islamic lawfulnesss. rough of the almost important challenges facing the Islamic banking industry ar place as follows. Legal Support: Islamic law offers its hold framework for execution of moneymaking(prenominal) 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 buy and sell properties and hence are taxed twice. The commercial, banking and company laws contain alimentation 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 make out of Islamic banking be put in place. The lawful framework of Islamic banking and finances might include the following: a. Islamic banking courts: The contest cases of the Islamic banks are subject to the same good governance and are dealt with the same court and judge as the conventional one while the nature of the legal constitution of Islam is tout ensemble different. To ensure a proper, speedy and supporting Islamic legal system, amendments in existing laws, ! which are inappropriate to injunctions of...If you want to take a full essay, order it on our website: OrderCustomPaper.com

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