The Challenges of Conventional Banking Practice and Prospects of Introducing an Islamic Bank to Tajikistan

The introduction and development of Islamic banking systems is highly competitive not only in Islamic countries, but among non-Muslim countries as well (Abdul Hamid, 20011). Despite an eagerness to promote Islamic banking systems globally, Tajikistan has yet to become a target for such aspirations and remains without an Islamic Bank. In light of this, this paper examines the challenges of conventional banking practices in Tajikistan with a special focus on the study of such challenges during the period of civil war (1991-1997). The paper attempts a study of the possibility of public adoption and acceptability of Islamic Banking and Finance among the Tajik population specifically among bankers, customers and Shariah scholars due to the fact that 95% of the population is Muslim. In addition, the study argues that the introduction of Islamic Banking and Finance constitutes a significant solution for the challenges facing the existing financial and banking system. The paper adopts the theo