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Tag Archives: Islamic

Islamic banking – potential of growth reasonably high

Islamic banking has been defined as a system of banking, which is in accordance to the values and the spirit of Islam and is based on principles, which have been put forth by the Islamic Shariah. Not only does this form of banking avoid any interest-based transactions, it also avoids unethical and immoral social practices, which go against Islamic law. Thus the aim of Islamic banking is to work towards …

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Islamic banking has an ample scope in consumer financing

  Knowledge, attitude and practices of Islamic banking “Knowledge, Attitude and Practices of Islamic Banking in Pakistan” was the theme of a research survey conducted by the State Bank of Pakistan (SBP) which in fact was the driving force behind the eye catching growth of the banking sector. According to the survey there is an overwhelming demand for Islamic banking in the country that is evenly distributed amongst rural and …

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Microfinance playing a vital role in wiping out poverty

  Pakistan has favorable environment for the growth and expansion of microfinance sector: EIU Over 2 million beneficiaries including non muslims are taking the productive use of Islamic microfinance worldwide Islamic banking industry has been showing a spectacular annual growth rate of over 30 percent over the past five years with sustained growth momentum despite substantial increased base. Islamic Banking has been expanded across 80 districts of the country with …

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Growth of Islamic Funds in Pakistan: issues & challenges

  Islamic funds have actually provided a window to a number of individuals, who were previously reluctant to invest because of their religious beliefs. The Islamic funds constitute 12 percent of the overall fund management in Pakistan. The country currently has the total assets worth Rs58 billion under management of Islamic mutual funds. Islamic funds industry is still at its initial stage. Presently, the country has all types of funds …

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The outlook of Islamic finance market

  Islamic finance during the past many decades has begun to progress in a great deal on the global front. Besides having the traditional Islamic finance markets in the Middle East, Western countries have also begun to see financial centers opening up. There is now more acceptance and recognition of this alternate financial system. The range and the scope of Islamic finance products over the years have also widened which …

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Growing Islamic finance industry

  Pakistan is a country where population is predominantly Muslim and the share if Islamic finance should have increased enormously by this time. The decision of State Bank of Pakistan (SBP) to let the two systems in parallel was good but the overall response of all the stakeholders, particularly the government has been lackluster. Bulk of the government borrowing from the local market has remained Riba-based, mainly through Treasury Bills …

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Growth in Islamic Finance surpasses conventional banking

  Islamic finance based on principals of Shariah provides an alternate to conventional banking. Islamic banking industry size is estimated to be $400 billion with potential to grow at minimum 15 percent to 20 percent globally per year, much faster than conventional financial institutions. This has been the same trend over the last 5 years since 2008. Islamic Banking assets globally are estimated to be $270 billion. The sukuk market …

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Islamic finance broadening horizon in the west

  When last year at the eve of World Islamic Economic Forum, British Prime Minister David Cameron announced a plan to issue $323 million sovereign sukuk, or Islamic bond, to attract new money to London, then his announcement not come out as a surprise for in and outside Muslim countries. No doubt, Islamic finance is naturally more popular among Muslims because of their religious beliefs, with Malaysia leading the rest …

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Brunei Darussalam experiencing strong Islamic banking

  Country still needs Shariah experts for growth of Islamic banking market Brunei Darussalam has only one fully-developed Islamic bank. Islamic windows are playing a pivotal role to invigorate the Islamic banking industry resembling with full-developed Islamic banks in most parts of the world and most of all, they are doing fine job to bring customers from conventional banking to Shariah-compliant business. The Tabung Amanah Islam Brunei was the first …

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Challenges with Takaful in Pakistan

  Takaful is Islamic insurance and is relatively a new concept in the financial markets. Takaful is based on pooling of funds where gains and losses are shared equally. Prime markets for Takaful include GCC and Malaysia. Earlier this decade when Islamic banking was picking up pace and Islamic banks was actively penetrating the market, estimates were circulated that Islamic banking in terms of deposits would be 10 percent of …

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