Islamic Banking and Finance in the European Union: A Challenge

Harmonizing the legal and regulatory structures of Islamic finance in the European Union is a difficult, but essential, task for practitioners. It is essential for practitioners to attempt to answer several key questions: What are the common points of origin in Islamic and Western banking and finance? How do Islamic and traditional methods differ? How do specific countries respond to Islamic finance? Can Islamic banking fit into the modern legal framework of the EU? Experts in the field have concluded that the access of Islamic intermediaries is adequate and may positively affect European integration, increase ethical thought in banking and finance, and increase competition among stand still operators. Islamic banking can also make the banking industry at large more inclusive.