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Challenges Facing Islamic Banking

  • Munawar Iqbal
  • Philip Molyneux
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

As mentioned in Chapter 4, serious research work of the past half-century has established that Islamic banking is a viable and efficient way of financial intermediation. A number of Islamic banks have been established during this period under heterogeneous, social and economic conditions. Recently, many conventional banks, including some major multinational Western banks, have also started using Islamic banking techniques. All this is encouraging. However, the Islamic banking system, like any other system, has to be seen as an evolving reality. This experience needs to be evaluated objectively and the problems ought to be carefully identified and addressed. In this chapter we review some of the challenges being faced by Islamic banks.

Keywords

Corporate Governance Central Bank Money Market Islamic Bank Implicit Contract 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Munawar Iqbal and Philip Molyneux 2005

Authors and Affiliations

  • Munawar Iqbal
    • 1
  • Philip Molyneux
    • 2
  1. 1.Islamic Banking and Finance Division Islamic Research and Training InstituteIslamic Development BankJeddahSaudi Arabia
  2. 2.University of WalesBangorUK

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