Principles of Islamic banking and finance/PIBF202/Islamic banking industry/Video signpost
In this video, Dr. Shamim Siddiqui from Hamdan Bin Mohamed Smart University, provides an overview of challenges and prospects of Islamic banking industry..
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Video transcript
Challenges and Future Prospects From its beginning in 1970s, the focus of Islamic banking has been on Shariah compliannce. The present Islamic financial system has evolved to offer a comprehensive financial system of its own: ranging from banking, capital market to takaful sectors. In just four decades, Islamic financial system has witnessed considerable developments and is now regarded as one of the fastest growing segments of the global financial system. To date, total global financial assets of the Islamic financial industry is estimated to be around USD2tln. The rapid growth of Islamic finance from 2009 onwards, or the post crisis period has been characterized by an improved industry infrastructure, a more comprehensive industry, a broader investors and issuers base, and more cross-border transactions. Of significance, the global Islamic financial industry is progressively evolving to be an important component supporting the economic and financial linkages. Despite the promising development of Islamic banking and finance, the industry is facing considerable challenges. They are: 1 Misconception against Islamic Banking 2 Lack of uniformity between Shariah’s views 3 Documentary complexity 4 Moving towards equity-based financing (Mudharabah & Musharakah 5 Heightened Competition
