Financial Performance Of Islamic Banking And Conventional Banking In United Kingdom A Comparative Study

1423 words - 6 pages

Chapter 1: Introduction
1.1-Introduction to Chapter:
This chapter describes the brief introduction about research title, research aims, research objectives, research hypothesis, research context and research limitation used in this research.

1.2-Research Title:
Financial performance of Islamic banking and conventional banking in United Kingdom- A Comparative Study.

1.3-Research Aim:
The Aim of this research is to analysed and evaluate the financial performance of European Islamic Investment Bank (UK) with Allied Irish bank (UK) and Northern Bank (UK), In Terms of their Profitability, Liquidity, Risk & solvency & Efficiency Ratios which will give an insight comparison of overall financial performances of European Islamic Investment Bank with Allied Irish bank And Northern Bank.
1.4- Research Objective
Research Objectives are set of goals which researchers intends to make from the research conducted. By Comparing financial performance of Islamic bank with other two conventional banks researcher can measure the overall financial health over the given period of Islamic bank.
 To understand the financial performance of Islamic bank.
 To understand the principles of Islamic banking and apply the knowledge in practice.
 To make the audience aware of the importance of and concept of Islamic banking.
 Based on research findings to propose recommendations for better financial performance

1.5 -Research Overview:

The Term Islamic banking (which is also known as Islamic finance) refers to the way of doing commerce and transactions which are Sharia compliance. For Islamic banks to work it must fully comply with Sharia .This type of Islamic economic system has now become a point of central attention in Islamic world, which covers 16.67% of the global land. The Muslim population by the year 2050 A.D is expected to be over 2.6 billion or over 26% of the projected population of 10 billion. Under Sharia, Interest which is known as Riba is prohibited in all forms; this prohibition is strict, absolute and unambiguous. The holy Quran has clearly warned that those who do not forego interest (RIBA) which has already accrued and do not stop themselves from taking it any further, then they are at war path with ALLAH and His Last Prophet Peace be upon him. According to Muslims Scholars there are two types of RIBA namely; Riba Al Fadl and Riba Al Nassiyah.

 Riba Al Fadl is defined as the addition compensation without any consideration resulting from a Sale of commodity.
 Riba Al Nassiyah is defined as the addition money, which lender sets over and above the principle.

In 1963, Islamic banking was first introduced in a small town of Egypt, since then many Islamic banks were established in the Asia & Middle Eastern region. This System of banking was emerged when traditional banking system and financial organisation lacked to provide Sharia based investment options for the customers. The first association of Islamic banks was...

Find Another Essay On Financial performance of Islamic banking and conventional banking in United Kingdom- A Comparative Study

Regulation of Banking and Financial Services

1525 words - 6 pages goal of the FDIC in resolving the failure of a bank or systemically important non-bank financial institution is to maximize the value of the failed institution’s assets while minimizing the damage to the broader financial system (Guynn, 2012). In conclusion, because of the 2007-8 financial crisis and the resulting Dodd-Frank legislation the era of the TBTF bank and non-bank financial institution is over. The FDIC now has the regulatory authority

EFFECT OF LIQUIDITY RISK TO FINANCIAL PERFORMANCE IN MALAYSIA BANKING INDUSTRY

1667 words - 7 pages the bank in Malaysia in order to maximize the profit. The financial performance of the bank can be evaluated through the determinants of profit margin, return on asset and return on equity. These determinants are important for firms to analyze the profitability in a banking industry. At the same time, the government can also make the right decision in terms of developing the banking industry in Malaysia. 1.6 Organization of the Study The study

Banking Bonuses and the Financial Crisis

2780 words - 11 pages hostage crisis” & “the Irish banking crisis didn’t start in September 2008; it started years earlier when bank after banks abandoned prudence and risked everything for short-term profits & personal bonuses. It ended up as a hostage situation with kidnapper/bankers threatening the economy and deposits, leading to the state guarantee. This option was the consequence not the cause of the financial meltdown. On reviewing the case Mc Williams put

Give a brief analysis of current banking regulation within the United Kingdom, with particular reference to the threat of systemic risk.

1904 words - 8 pages . This has become the main justification of banking regulations. The MOU advises that the primary concern is to "maintain confidence in the financial system operating in the United Kingdom". Banks tend to be more intertwined with each other due to the payment system. Money owed from one bank to another is paid at the end of the day; if this can't be met then this may well have a systemic effect on other banks, as they in turn may not be able to

Briefing Paper on Islamic Banking System

2424 words - 10 pages Labour Organisation (ILO).However, while a conventional bank creates more than £300 billion losses in the global financial crisis, Islamic banks and finance industry are almost zero. Because the Islamic banking and finance have defining characteristics in the conventional finance world after the exceptional crisis of the world subprime mortgage market left financial institutions hundreds of billions of dollars of worthless credit instruments

impact of global financial crisis on banking sector

1904 words - 8 pages their best to improve the current condition. Based on the research done by Krasicka and Nowak (2012), they had found out that the Malaysian financial system is a dual system which can be separated into Islamic and conventional market which both of them operated parallel to meet the demand of the customer. Besides, they also found out that the size of the banking system is not in a steady performance which experienced a decreased and increased

impact of global financial crisis on banking sector

2820 words - 11 pages , all banks which located in Malaysia had been chosen. In this study, Malaysia has been chosen as the case study due to the reason of Malaysia is a dual banking system and the globalization that happened lead to the formation changes applied to the bank. According to International Monetary Fund (2007), Islamic bank has an increasing growth rate and it is expected to grow further in the future. Therefore, it is important to examine the performance

The Impact Of Global Financial Crisis On The United Kingdom

2669 words - 11 pages Introduction This report will look at the National Health Service, which is a significant part of the current welfare state in the United Kingdom. It is for people who would like to know more about health system of contemporary Britain. In this paper, it will begin by looking at the healthcare background and reforms, and will show how the NHS has affected British citizens. Finally, according to the current healthcare system, brief conclusions

The Impact Of Global Financial Crisis On The United Kingdom

7067 words - 28 pages The impact of the National Health Service on the United KingdomIntroductionThis report will look at the National Health Service, which is a significant part of the current welfare state in the United Kingdom. It is for people who would like to know more about health system of contemporary Britain. In this paper, it will begin by looking at the healthcare background and reforms, and will show how the NHS has affected British citizens. Finally

Describe the general development of financial accounting regulation in the United Kingdom from 1970 to the present day.

1039 words - 4 pages never be complete, saying that 'Accounting standards need to keep abreast of changes in the law, business practice and users' expectations. Since these are constantly changing it is difficult to envisage a time when accounting standards will not need to change.'To summarise, it is clear that the history of accounting standards in the United Kingdom is wide ranging and complex. Their development has not been aided by the rise of fall of the

History of Money and Banking

3112 words - 12 pages records the history of the founding of America from Christopher Columbus to the end of the Revolutionary war. It presents this history in a distinctly economic viewpoint. Rothbard, Murray N. (2012). The Case Against The Fed. Lexington, KY: n.a p.59. In this book, Murray Rothbard lays out his case against the fed. He explains its history and why it has not worked. Rothbard, Murray. (2005). The History of Money and Banking in the United States

Similar Essays

Islamic Banking. Essay

3295 words - 13 pages sector; the lack of a powerful and organized financial sector in most Islamic countries; and most importantly, the fact that the international financial system is based on the principle of making and paying interest on money which has been the most important principle in the history of banking so far.From an Islamic Shari'a perspective, dealing in interest is haram because it is considered as a form of usury (or riba) which is prohibited in Islam

Islamic Banking Essay

3526 words - 14 pages PAGE PAGE ii Islamic Banking in UK Islamic Banking in UK[Name of the writer][Name of the institution]АBSTRАCTThе purpоsе оf thіs rеsеаrch іs tо іnvеstіgаtе thе оppоrtunіtіеs оf dеvеlоpmеnt аnd grоwth аs wеll аs thе mаіn chаll

Awarness Of Islamic Banking Culture In Pakistan

3606 words - 14 pages . Thunderbird International Review, 41 No. 4/5, 407-420 Haron, S., Ahmad, N., & Planisek, S.L. (1994). Bank patronage factors of Muslim and Non-Muslim customers. International Journal of Bank management, 12 No. 1, 32-40 Huda. (N.d.). Sources of Islamic law. Retrieved February 27, 2010, from http://islam.about.com/od/law/a/sources.htm Iqbal, M. (2001). Islamic and Conventional Banking in the nineties: A comparative study. Islamic Economic

The Advantages Of Islamic Finance And Banking

1410 words - 6 pages the basic principles of the Islamic finance, the reasons of the restriction of interest, the most important tools used by Islamic banks in economic activities and brief explanation of them, and finally my view point of the probable future improvement of the Islamic financial system. First of all, let us outline how Islamic banks actually work and what their main differences are in comparison with conventional banks. In this banking system, banks