Malik, Bilal A. and Khaki, G. N.,(2015), Scope and Feasibility of Islamic Banking And Finance Model. , The Journal of Central Asian Studies, UNSPECIFIED
Text
Restricted to Repository staff only
Download (442kB)
Restricted to Repository staff only
Download (442kB)
Abstract
More than five decades ago, banking and finance based on the principles of
Islamic Commercial Law (fiqh al-mu’amalat) was just a wishful thinking.
However, since it’s commencement in early 1960s, Islamic finance industry
remained at constant momentum in and outside the Muslim world. Making
space among the leading financial service providers like Hong Kong and
Shanghai Banking Corporation(HSBC, London), Deutsche Bank (DB,
Germany), Bank National Paris (BNP, France), Citi Group (U.S),Union
Bank of Switzerland(USB, Switzerland), Merrill Lynch and Barclay’s (UK),
etc., the ‘nascent’ industry has now become a practical reality. As such, the
developing Asian economies like India and Kazakhstan -(countries under
study)- being home to large Muslim populations, are expected to offer a
promising growth market to Islamic finance industry. The overview of socioeconomic
factors like demography, religious participation, behavioral
finance and demand for a robust financial structure after experiencing the
worst consequences of global financial crisis, have led experts to expect a
‘perception shift’ in customer choice in general and Muslim customers in
particular. Regardless of India being home to 177 million Muslims, and
Kazakhstan, a Muslim majority state (70.2%), much has not been done to
materialize the concept of Islamic banking and finance on practical grounds.
The major impediment in the development of shari’ah compliant banking in
both the countries is generally and genuinely ascribed to their respective
secular constitutions. Although, felt heavy with customer interest, the
government of Kazakhstan reformed the banking constitution in 2009, just
to become the first country to facilitate the development of Islamic finance
in the Common Wealth of Independent States (CIS).Currently, Kazakhstan
has one full-fledged Islamic bank- Al Hilal Bank (established 2010), which
offers both corporate and retail services. By now she has also the (Islamic)
legal framework for sukuk (securities), takaful (insurance), and ijarah
(leasing). Being the largest democracy of the world, the government of
Indiais yet to introduce such type of constitutional change. However, one of
her states in the South - Kerala State was the first to allow the Kerala State
Industrial Development Corporation (KSIDC) to offer shari’ah compliant
financial services to the Muslim community. It is with this background that
the present paper will attempt to examine the feasibility and challenges
of Islamic finance industry from Indian and Kazakhstan perspective by applying SWOT analysis method.
Keywords : | Islamic Banking, India, Kazakhstan, Feasibility, Emergence, Development, Islamic Commercial Law, Islamic Finance Industry, Legal Models, Potential Investors., UNSPECIFIED |
---|---|
Journal or Publication Title: | The Journal of Central Asian Studies |
Volume: | XXII |
Number: | UNSPECIFIED |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Users 15 not found. |
Date Deposited: | 26 Dec 2019 05:06 |
Last Modified: | 26 Dec 2019 05:06 |
URI: | https://repofeb.undip.ac.id/id/eprint/825 |