The prospect for Islamic banking movement

Though the annual success of Islamic banks has proven their viability, the future growth of Islamic financial institutions depends on the development of a worldwide network of modern and well-equipped financial institutions. Islamic banks must undertake longer-term financial investments and develop medium- and long-term financial instruments. Since a secondary financial market does not exist, a pan-Islamic financial regulatory body should be contemplated. Due to the comprehensive range of activities of Islamic banks, firms must invest in technology and human capital to increase managerial and operational skill. Financial cooperation among Islamic banks has increased. The International Association of Islamic Banks continues improving ties among banks, providing technical assistance to developing banks, and representing the interests of Islamic banks internationally. Islamic banks lack a necessary legal framework, have inadequate money markets, and have liquidity problems. The ce