Islamic Banking Case Study

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Chapter 1 Introduction Islamic banking is banking activity that is reliable with the principles of sharia and its practical application through the growth of Islamic economics. As such, a more correct term for Islamic banking is sharia compliant finance. Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. Islamic banking, the more general term is expected not only to avoid interest-based transactions, prohibited in the Islamic Shariah, but…show more content…
Organizational enterprises independent from the state also happened in the medieval Islamic world, while an institution was also introduced during that time. Many of these early capitalist ideas were adopted and further advanced in medieval Europe from the 13th century onwards. Islamic banking is the fastest growing industry of banking not only in Pakistan but all over the world. Islamic banking has experienced global growth rates of 10-15 percent per year and has been moving into an increasing number of conventional financial systems at such a rapid pace that Islamic financial institutions are present today in more than 50 countries. Due to continuously growth many finance practitioners remain unfamiliar with the process by which Islamic banks are introduced into a conventional…show more content…
Islamic bank considered an ethical way of banking from the customer and Islamic point of view. The majority of Islamic bank customers are well educated and approximately 78% percent are between 23‐50 years of age, more than 50 percent of the surveyed customers have maintained their current banking Account relationship with Islamic banks customers awareness and usage rates are quite high for savings accounts, current accounts, investment accounts and ATM’s customers were found to be most satisfied with the products and services and interest free account service. Customer satisfaction is the most important thing in Islamic and conventional banking so that the banks give to customer highly satisfied values and use the concept of customer delight. It means the customer should satisfy with the bank’s products and

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