scholarly journals Paradigm Shift from Conventional to Islamic Banking System: A Case of the Conversion of Taqwa Islamic Banking in Pakistan

2018 ◽  
Vol III (I) ◽  
pp. 321-332
Author(s):  
Muhammad Mushtaq Ahmed ◽  
Javed Khan ◽  
Fazl e Haq
Keyword(s):  
Paradigm Shift ◽  
Banking Industry ◽  
Banking System ◽  
Islamic Banking ◽  
Conventional Model ◽  
Clear View ◽  
System A ◽  
Regulatory Guidelines ◽  
Previous Decade ◽  
Set Up

The paradigm shift in banking industry from conventional to Islamic system of banking has been evident in previous decade. Conventional institutions are also either setting-up Islamic subsidiaries or converting conventional set-up into Islamic. The bank of Punjab started Taqwa Islamic Banking-(TIB) by converting its 1st branch into Islamic banking in 2012. In 2014, the bank completed one of the largest conversion project by converting 24 conventional into Islamic banking. In this paper, the regulatory guidelines of SBP in respect to conversion is discussed and procedure adopted by the bank of Punjab-TIB- is studied and analyzed. Practical complications and key problems faced by BOP-TIB and its possible solution is also presented. The study will provide a clear view of the conversion and the method adopted by BOPTIB. The study will further guide institutions intends to adopt conversion of its business from conventional model into Islamic model.

Dispute resolution in the Islamic banking industry of Tanzania: learning from other jurisdictions

2016 ◽  
Vol 9 (1) ◽  
pp. 125-142 ◽  
Author(s):  
Abdul-Nasser H.R. Hikmany ◽  
Umar A. Oseni
Keyword(s):  
Dispute Resolution ◽  
Dispute Settlement ◽  
Banking Industry ◽  
Banking System ◽  
Legal Framework ◽  
Policy Framework ◽  
Islamic Banking ◽  
Court System ◽  
Content Type ◽  
Good Policy

Purpose This paper aims to examine the prospects of a dispute resolution framework for the Islamic banking industry in Tanzania under the existing legal framework. Design/methodology/approach This paper is based on comparative study by drawing significant lessons from other jurisdictions, and argues that to avoid some of the initial drawbacks in the dispute resolution framework for Islamic banking transactions in more advanced jurisdictions like Malaysia and United Kingdom, it is important for Tanzania to get it right from the onset to effectively manage Islamic banking disputes. Findings The study finds that apart from the court system which provides the main avenue for Islamic finance litigation, other processes such as arbitration and mediation which are deemed to be more sustainable could also be developed for effective dispute management. Research limitations/implications The study focuses on Tanzania banking system with comparison to other jurisdictions. Practical implications An increase of Sharī’ah-compliant products in Tanzania has led to the establishment of a number of Islamic banks. This study demonstrates the need for Tanzania to make use and/or make adjustment of its laws for effective dispute settlement of banking-related disputes. Originality/value This study appears to be the first paper to draw significant experiences from other jurisdictions to resolve Islamic banking disputes in Tanzania. It is expected to provide a good policy framework for the stakeholders in the Islamic banking industry in Tanzania.

scholarly journals The Needs for Official Sharia Compliance Audit Institution to Protect Customers of Islamic Banking: an Application through Ḥisba

2017 ◽  
Vol 5 (1) ◽  
pp. 75-84
Author(s):  
Bharudin Che Pa ◽  
Mohd Roslan Mohd Nor ◽  
Sanusi Abdul Manaf
Keyword(s):  
Banking Industry ◽  
Banking System ◽  
Islamic Banking ◽  
Contributing Factors ◽  
New Era ◽  
Compliance Audit

The emergence of Islamic banking system in most banks in Malaysia nowadays bring a new era in Malaysian banking industry. This article discusses the needs for official sharia compliance audit institution to protect customers of Islamic banking. By using literature studies, this article concludes that one of the contributing factors which lead people to adopt Islamic banking system is their awareness of the serious and intolerable prohibition of riba. Some of the ways to ensure customers are well protected are to establish ḥisba institution as Sharia compliance audit body. The establishment of ḥisba institution allows it to stop the violation of Allah’s prohibition and protect the society. With the establishment of the institution, it can play an important role to solicit advice and to monitor performance so that the banks operate strictly as according to the Islamic regulations.

Islamic banking selection criteria: a multi-ethnic perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Noradilah Abdul Hadi ◽  
Mohd Rizal Muwazir
Keyword(s):  
Design Methodology ◽  
Banking Industry ◽  
Descriptive Analysis ◽  
Banking System ◽  
Marketing Strategies ◽  
Islamic Banking ◽  
Content Type ◽  
Selection Factors ◽  
The Relationship ◽  
Further Development

Purpose The purpose of this paper is to examine selection factors among multi-ethnic customers in Malaysian Islamic banking industry. The information is important to reinforce the argument that ethnicity could become significant factor in determining customer behaviour. Design/methodology/approach This study uses quantitative approach by using questionnaire (Likert scale) to measure respondents ranking of 25 selection factors. A total of 272 valid responses were generated from 450 questionnaires distributed, with 60.4% response rate. The methods of analysis used are descriptive analysis, factor analysis and Kruskal–Wallis test. Findings The findings revealed five selection factors (religious and ethical, services and convenience, service quality and benefit, external and operational and charges), with religious and ethical factor as the most important criteria for Malay customers. As for Chinese and Indian customers, they chose services and convenience factor. Originality/value This study is conducted to gain new insights on the perception of multi-ethnic banking customers in Malaysia towards Islamic banks and how cultural differences might affect their decisions. The findings are important for further development of the Islamic banking industry in Malaysia considering ethnicity has a major impact on the society. The acknowledgement of similarities and differences between the ethnic groups could strengthen the relationship with the Islamic banking customers. Furthermore, incorporation of ethnicity factor in bank’s marketing strategies is important to secure competitive advantage particularly in dual banking system such as in Malaysia.

scholarly journals Islamic Banking and its Legal Validity in India

2016 ◽  
Vol 4 (2) ◽  
pp. 1-18
Author(s):  
Dikshit Arushi
Keyword(s):  
United Kingdom ◽  
Public Awareness ◽  
Banking System ◽  
Islamic Banking ◽  
New Delhi ◽  
Free Banking ◽  
Legal Regime ◽  
The Public ◽  
System A ◽  
The World

Islamic banking is an emerging model of banking which is currently practiced in several countries such as Malaysia, Indonesia, Afghanistan, Bangladesh and United Kingdom. The most intriguing aspect of Islamic banking is that it works on a purely no interest basis. Given the fact that India is a country with one of the largest Muslim populations in the world, the researchers believe it is important to understand the public awareness, acceptability and feasibility of introducing this system of banking in India. This paper primarily aims at discussing the legal viability of introducing Islamic banking in India, taking into account the current legal regime. In analyzing how forthcoming the population will be towards this banking system, a sample of the population was chosen from Pune and New Delhi and surveyed with the help of a questionnaire, leading to the inference that most people are open to the concept of interest free banking but are unwilling to accept the Islamic ideology it is derived from.

scholarly journals Analisis Persaingan Perbankan Syariah Indonesia: Aplikasi Model Panzar-Rosse

2010 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Rahmatina A. Kasri ◽  
Nur Iman
Keyword(s):  
Human Resources ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Competition ◽  
High Data ◽  
Opposite Case ◽  
Conventional Banks

Indonesia is among the few countries that adopts dual banking system where Islamic banks run in parallel and compete with conventional banks. Although under such a system banking competition would be expected to be high, data tend to show the opposite case, as three Islamics banks acquired 65 percent of market share in Indonesia. This study, therefore, attempts to determine the degree of banking competition in Indonesia by employing the Panzar-Rosse Model for 2003-2008 period. The study also analyses the competitive behaviors of Islamic banks and compares it with those of its conventional counterparts. The estimated model suggests that monopolistic competition exists in the overall banking industry—the degree is even slightly higher for Islamic banking, where the market is characterized by aggressive competition for funding, quality human resources, and financing. Such competition occurs due to, among others, small market size, low consumer base, lack of product variations, and lack of competent human resources. These should be a major concern for all Islamics banking stakeholders for developing a better Islamic banking industry, particularly in Indonesia.

scholarly journals An Assessment of the Independent Commission on Banking's Recommendations

2011 ◽  
Vol 218 ◽  
pp. F4-F12 ◽  
Author(s):  
Angus Armstrong
Keyword(s):  
Financial Stability ◽  
Banking Industry ◽  
Banking System ◽  
Retail Banking ◽  
Key Issues ◽  
The Government ◽  
Set Up ◽  
Litmus Test ◽  
The Uk ◽  
Independent Commission

The government set up the Independent Commission on Banking (ICB) to consider structural and non-structural measures to promote stability and competition in the UK banking system. They have produced a comprehensive assessment covering some of the key issues facing the banking industry. The ICB's three core recommendations are: a ring-fence to separate retail and wholesale banking activities; banks are required to have more lossabsorbing capital; and greater competition in retail banking markets. In some respects, the recommendations are a step back towards an earlier time of compartmentalised banking. The litmus test is whether they deliver a similar period of financial stability and economic growth.

The Way Forward for Islamic Banking System: A Comparative Study between Malaysia and Nigeria

2017 ◽  
Vol 04 ◽  
pp. 68-78
Author(s):  
Malik Sahhzad Shabbir ◽  
◽  
Tasmia Matloob ◽  
Muhammad Faiz ◽  
◽  
...  
Keyword(s):  
Comparative Study ◽  
Banking System ◽  
Islamic Banking ◽  
System A ◽  
The Way

Legal obstacles in establishing Islamic banking in Maldives

2016 ◽  
Vol 10 (1) ◽  
pp. 40
Author(s):  
Aishath Muneeza ◽  
Ismail Wisham
Keyword(s):  
Central Bank ◽  
Banking System ◽  
Political Support ◽  
Economic Resources ◽  
Islamic Banking ◽  
Muslim Country ◽  
Small Problem ◽  
Islamic Bank ◽  
Frame Work ◽  
Set Up

<p class="Style2">Maldives is a hundred percent Muslim country. Though the laws in Maldives are influenced by common law and civil law systems, the spirit of the laws are based on Islamic principles. However, when it comcs to the banking system, it is poignant to state here that the only known banking system to the country is based on conventional or usury friendly system. Up until now there are only six banks operating in the country. And none of them is an Islamic bank. It has been frequently questioned on why it is so difficult to set up an Islamic Bank in a hundred percent Muslim country? People say that the demand is there, so what is there to worry? But the truth is that the challenges we face are more than what any one could think of. As rightly pointed out, the demand for Islamic banking is there. But what about the legal infrastructure, political support and the economic resources which are needed to invest to convert the banking system? Lack of human resources in the country is also not a small problem. And political instability has exacerbated the situation. In the past years, there have been several failed attempts made to introduce the Islamic banking system to the country. But due to lack of proper legal frame work in the country and some other financial reasons Islamic banking were never introduced. Now finally we see a green signal from the Central Bank of Maldives for establishment of Islamic bank. Towards the end of last year the Central Bank of Maldives have announced public to apply for jobs designed for the Islamic bank which is intend to be open soon! The main purpose of this paper is to look at the obstacles in introducing Islamic banking in Maldives. The challenges it is facing and the ways to curb it. It is argued here that as a Muslim nation establishment of</p>

Sharīʿah Regulation and Supervision of the Iraqi Islamic Banking System

2020 ◽  
Vol 35 (1-2) ◽  
pp. 212-244
Author(s):  
Shamsalden Aziz Salh ◽  
Mark Hyland
Keyword(s):  
Case Studies ◽  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Islamic Banking ◽  
Supervisory System ◽  
Regulation And Supervision

Abstract This article critically evaluates the Sharīʿah regulation and supervision of the Iraqi Islamic banking system. Due to the country’s incomplete Islamic banking framework and lack of qualified Sharīʿah scholars, the Iraqi Islamic banking system is somewhat ineffective. In Iraq both the internal and external Sharīʿah supervisory systems in the Islamic banking sector are weak. The internal Sharīʿah supervisory system suffers from a shortage of qualified Islamic banking experts. At the same time, there is no effective external Sharīʿah supervisory system due to the lack of a Central Sharīʿah Board. This article examines the Sharīʿah supervisory system of the Iraqi Islamic banking industry by using case studies on Malaysia and Bahrain, both of which have a developed Islamic banking system. The Sharīʿah supervisory systems in these two countries are examined in order to propose an effective and comprehensive Sharīʿah regulatory and supervisory framework for the Iraqi Islamic banking industry.

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