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Islamic Banking Issues




Human source for Sharia'h compliance

Users of Islamic financial solutions allocate main significance to Sharia'h conformity of the solutions they use. It is easy to understand that Sharia'h noncompliance needs a serious functional risk and can result in drawback of resources from and uncertainty of an Islamic financial institution, regardless of its preliminary financial soundness. Sharia'h conformity is hence a serious matter for an Islamic financial institution, moreover to its conformity with other regulating specifications.

Unresolved Fiqh Issues
Lack of conventional financial agreements and items can be a cause of indecisiveness and a source of argument and cost. In inclusion, without a common knowing of certain main fundamentals, further growth of banking items is restricted.

Legal framework
An appropriate lawful, institutional and tax structure is a main need for developing sound banking organizations and marketplaces. Islamic jurisprudence offers its own structure for the execution of professional and financial agreements and dealings.
Nevertheless, professional, banking and company rules appropriate for the administration of Islamic banking and financial agreements do not are available in many nations.

Excess Liquidity
Islamic financial institutions have over 60 % unwanted fluid resources which cannot be effectively used due to non-availability of Sharia'h Certified items and equipment.
The competition and soundness of banking organizations rely on the accessibility to effective loans. Islamic financial institutions quickly need Sharia'h compliant items to fulfill a variety of pushing needs.

Technology
Designing technical alternatives around a idea needs comprehensive knowledge of the sector. Traditional banking today is technically advanced; however, for developing Islamic financial alternatives, time and skills are needed.

Islamic Economical — Possible Solutions

•          Establishment of Shari'ah Government Systems

•          Settling uncertain Fiqh Issues

•          A adequate variety of well-trained, qualified, high-caliber Islamic fund experts and management groups with the needed expertise

•          Well-informed individual and business customers, experienced about Islamic banking and takaful

•          The accessibility to Sharia'h compliant items (Sharia'h Certified Shares, Sukuks, etc.)

•          Development of a Legal, Regulatory, and Institutional Framework submission with Sharia'h

•          Advanced technical innovation alternatives designed to support Islamic Finance.

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