affiliation not provided to SSRN
October 12, 2008
The project identifies the concept of Islamic Banking, from its origin as mentioned in the Holy Qur'an and reforms being introduced to meet the requirement of today.
Section one, outlines the aims of the project. The Second section, deals with methodological issues and attempts used to justify the choice of research variables, reasons why they were most appropriate to my project undertaken. Section Three, of the project looks at what the Quran says about Islamic finance. It raises the question that Islamic finance is divinely revealed and must follow the Shari'a (Islamic law), and therefore, financial transaction can only be conducted within certain boundary. Section Four, will investigate the origin of Islamic banks, how it has evolved with time, and also why there is this resurgent for this kind of financial intermediary.
Section Five, will involve a full description of the reasons for the banning of interest in Islam and its implication. This will directly lead to Section Six, which will look into what is Islamic bank and requirement necessary to be classified as a bank for Muslims, and also how is the concept different from the conventional banks. This chapter will also look into the many ways that Islamic bank provide services which is within the Shari'a.
Section Seven, will look at the practices of the Islamic banks and the permissible forms of transactions. This will lead to section eight, which will look at the problems facing Islamic banks. It will focus on aspect in terms of reforms and improvement required in order for this kind of banking system to be effective.
Finally, Section Eight concludes the project by discussing briefly the how the system is doing well and how it still needs to improve. Furthermore I will also evaluate my methodology....