The relationship between Islamic banking theory and practice (D.Phil. Thesis)

This work reports an investigation which assessed the application, or overlooking, of the Islamic ideas of banking in Islamic banks in different societies. The focus was on three banks: Al-Baraka International Bank Limited in London, Jordan Islamic Bank in Jordan, and Al-Baraka Turkish Finance House in Turkey. These banks operate in a non-Islamic country, an Islamic country, and a secular country with a mostly Muslim population, respectively. The main conclusions drawn from the investigation were that all three banks favored Morabaha for transactions over the apparently high-risk profit loss and sharing; the number-one consideration of Islamic banks when reviewing a possible project is its compliance with Islamic law, followed by maximizing profit and minimizing risk; specific legislation protecting the conditions of an Islamic bank is more significant for the bank's success than being part of an Islamic banking system; and Islamic banks have difficulty obtaining financially effect