Publisher's Synopsis
This book highlights the key characteristics of Islamic banking which differentiate it from conventional banking. This detailed book highlights how Islamic banking is consistent with the Sharia'a and, as such, an important part of the system is the prohibition on collecting interest. This central religious precept appears to rule out most aspects of modern finance but it does allow money to be used for trading tangible assets and business, which can then generate a profit. Brian Kettell's book looks at all aspects of Islamic banking, including detailed chapters on its creation through to explanations of Murabaha and Musharaka contracts, Ijara and Istisna'a financing methods, as well as Salam and Takaful insurance. Finally the book takes a look at Sharia'a law and Sharia'a boards, indicating the roles and responsibilities that come with membership. Islamic banks have been operating in places such as Bahrain, Saudi Arabia, Malaysia and Dubai for some time. Conventional bankers have traditionally viewed the sector as a small, exotic niche, but in the past five years it has seen a surge in popularity. Several Western investment banks, including HSBC, Lloyds Bank and Citigroup, have started working with Muslim clerics to create new ranges of financial products designed for devout Muslims, due not only to the growing Muslim population in Europe but also higher oil prices. Although estimates of the size of the Islamic finance industry vary greatly, everyone agrees that it is expanding rapidly and this is the perfect book for anyone looking to understand the industry.
