Thesis

Abstract This thesis analyzes the implications of Muslim precepts on banks expression and activities, direction on banking supervision airs. It points out and discusses these issues in the context of a effigy version of Muslim banking, as well as in frameworks that fall between the paradigm version and received banking. The end of Islamic banks operating in a conventional organization is also examined. ContentsPage Summary 3 I. Introduction 4 II. Review of the primal Features of Islamic Banking 6 A. Problems in Implementing the PLS Scheme12 III. Banking control in an Islamic Framework 19 A. Legal Foundations 22 B. way of Operational Risks 22 B.1 smashing 23 B.1.1 direct of the Capital Adequacy Ratio 23 B. 1.2 Risk-weighting Methodology 25 B.1.3 Off-balance carpenters plane Commitments 26 B.2Assets 27 B.3 Manage ment 28 B.4Earnings 32 B.5Liquidity 32 C.Information Disclosure 34 D.Licensing Procedures 37 IV. Current Practices and future Developments in Islamic Banking 39 V.

Concluding Remarks 42 References 43 Annexures I-V school text Tables Islamic Modes of financial support 7 Comparison of Banking Frameworks 10 Islamic Banking in Practice: Shift in the cerebrate of Banking Supervision 40 SUMMARY Islamic precepts influence the structure and activities of banks in several ways, the most important being the obstruction aga inst the pay and receipt of a fixed or mol! d valuate of interest, which is replaced by profit- and loss-sharing arrangements whereby the rate of return to financial assets held with banks is not cognize and not fixed prior to the undertaking of apiece transaction. Islamic banks thus differ from conventional banks, but the issue of what prudent standards should apply to Islamic banks has received little attention. This...If you essential to grow a full essay, order it on our website: OrderCustomPaper.com

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