Development of the Islamic Banking Model
Islamic banking, like any other banking system, must be viewed as an evolving system. No one disputes that there is a definite desire amongst Muslim savers to invest their savings in ways that are permitted by the Islamic Sharī‘ah. Nevertheless, they must be provided with ḥalāl returns on their investments. Islamic scholars and practical bankers took up that challenge and have made commendable progress in the last 30 years in providing a number of such instruments. However, the concepts of Islamic banking and finance are still in their early stages of development and Islamic banking is an evolving reality for continuous testing and refining of those concepts.
KeywordsFinancial Intermediation Islamic Banking Demand Deposit Islamic Finance Conventional Banking
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