Islamic Finance

The author is interested in the examining the essence of the practice of Riba in its two main categories of

On March 4, 1993, three conventional banks in Malaysia were allowed to open interest-free (Islamic) banking counters in addition to their other practices. Since the 1980's , there have been institutions that offer non-interest services. At this point, however, the Islamic institutions' place in the market is quite small. Since Muslims consider interest to be wrong, the demand for non-interest services can rise. The non-participation in the banking system by certain Muslims can hurt the development strategy of the country. An integrated Islamic system needs to be set up.

The duty of the auditor varies in accordance with the particular economic, political, and social system in which he is working. The author discusses the nature of Islamic banks and investment companies, and then defines the role of the auditor for such financial institutions. As a representative of the shareholders, he works for the shareholders, is responsible for supervising and reporting upon the activities of the economic unit, and is accountable to the shareholders, who are represented by the general assembly.

NULL

Because the weekend in the West begins on Saturday and the Islamic world takes Friday off, opportunities for interaction with Western firms are fewer than they might otherwise be without such a difference. Pakistani businessmen have consistently been calling for a change in the structure of the working week so as to take Sunday off and work on Friday.

No single development model will work for all less developed countries, because of their diversity. This recognition of each country's unique situation has, remarkably, only recently been established. The thinking that there was only one path of development resulted in the Westernization and the quick industrialization projects undertaken in less developed countries. These projects led to a disruption of the lifestyles of native peoples. It may be said , however, that development strategies for the

Among the institutions cited by Asiamoney as the best commercial banks in Asia is Pakistan's Faysal Bank Limited. Faysal Bank increased its lending by a large margin in the last year. It is a firm with the backing of a powerful Middle Eastern group. The low 39% cost-to-income ratio of Faysal Bank gives this institution an edge over others.

Islamic banking is at a crossroads: it must now either integrate with the conventional financial infrastructure or relegate itself to the sidelines of world banking. Despite recent growth among Islamic financial institutions, pessimism remains regarding whether Islamic banks can compete with conventional banks. One obstacle that Islamic banks must continually overcome is the restrictions that Islamic law imposes on the types of products that can be provided.

This paper examines the growth of Islamic financial institutions and the cooperation between them and Western institutions and the major advantages of such relations. The emergence of Islamic institutions has attracted attention the world over and the Western institutions have themselves begun offering Islamic products. This has opened up great opportunities. To realize the benefits of this, Islamic institutions need to offer acceptable investment opportunities and develop their management skills.

The theory and practice of Islamic banking are attracting worldwide attention. This new pattern of banking, while still in its infancy, has already made a significant impact on the world financial scene.