Islamic Banking Systems in the UK

Muslim wedgeing Systems in the UKCh. 1 IntroductionThis chapter provides a brief background of Muslim affirming in the world as well as in the UK about its dodge and practice. The Moslem financial law has grand history but Moslem banking and finance industry came into foundation with improvement and Loss Sharing investment.Egypts Mit Ghamr Saving Banks in 1963. After official existence Moslem banking has grown in the area of finance, banking, insurance, mortg era, and assets management business with annual growth rate of 10-15 %. But actual give voicement in Moslem banking is started after 1970 with new investment techniques, strategies and product information (Steward, 2008). Dubai Islamic Bank (DIB) is k straightn as world early Islamic bank it was create in 1975.Currently it has 48 branches which great services. DIB offers higher returns than conventional banking system as well they provide auto, home and personal finance products, (Platt, 2008). Islamic ban king is a relatively little known in the West, and greater cheer in disgust. The idea of Islamic Banking, but contains much more than the bulwark of divertingness. Islamic banking shows that ethics and finance foot be connected to dish the society. The idea is to eliminate the banking system of injustice in the society. A blow over link with the religion of Islam can lead to mistrust among the citizens in the West, possibly out of fear of the unknown. Todays global society in the Arab world and the Islamic banking system is closer to us and must be treated. If the Islamic bank and its honourable values for the first time it will be utopia, the scotch actors in the world. Attitudes are changing, but slowly, and in recent geezerhood, the value of the conventional banking system, which has begun to look neutral, the conscience of a growing result of people. Author do not want to funds, banks and financial institutions, releases to companies which invest ethic completely(a) y and genially detrimental act. The aim of this study is the question of Islamic banking important to clarify and rationalise some of their links to politics, history and religion. Islamic finance is on Islamic law shariah that offers all the solutions and economic problems of the foundation. Under Islamic law, interest completely forbidden in Islam, because the interest rates truly oppose impact on society, much(prenominal) as the ability, purchasing power and increase poverty, uneven distribution of the credit crisis and the economy. consort to Usmani (2005) the main drawback in interest based system is financier has no concern with money when he gives an interest bearing loan to a client. But in Islamic financial contract cash money is not given to client, first of all they purchase the commodity and transfer to client then all profit and loss will be distributed between parties according to concord terms and conditions (Usmani, 2005). Is allegations that investment in I slamic financial system is very good for the economy, since the actual failure and the equilibrium, and it is helpful to improve the economy and society. economical Law of Islam, there are some funds methods, such as Musharaka, Murabaha, Ijarah mudaraba and all the details of the case of the treaty, and some agreements in place systems for manduction profits and losses. Islamic financial system is based on the manduction of risks between the parties and the burden is not entirely consistent with the Parties. Islamic finance is not only the Muslim community because they are the moral and ethical approach to finance and investment. Islamic finance is also popular in all communities in the joined Kingdom. Islamic finance has a number of challenges in the UK because the financial system is attractive to the handed-down banking system, but the Islamic banking has great authorization in the join Kingdom because it has less to quintette years in an Islamic bank carried out a eviden tial type in the British financial markets .Ch. 2 The ProblemAccording to the figures of Office for National Statistics 2001, there was 2.2 one thousand thousand (3.4%) Muslims living in the United Kingdom (National Statistics, 2010), but according to Home Secretary the Muslim people is increasing with high growth rate. In just seven years there is an increase of 40,000 Muslims in the UK and figures reached on more than 2 million which consist of 3.3% of total UK state (Guardian, 2010)There was no way gettable to the Muslims in the United Kingdom before 2000, but the Muslim population would spend their lives for their faith. Depending on the interest of Islamic education in Islam is purely forbidden, and they want banking services such as savings accounts, checking accounts, mortgages, insurance and loans, endorse by the Islamic law Sha Riah. The United Kingdom is a non-Muslim and all of its financial rules and rules for the traditional banking system. While the Muslim communi ty has an active berth in the economy, there was no need for a system that can start to accept these people. Islamic banking began in England in 2003, so that the fiscal Services Authority. By 2003-2009, there is sufficient improvement and development of Islamic banking. There are shortly two main part of traditional banks and Islamic banks, Islamic banking in its entirety. But the growing Islamic banking and start-up phase, and the Islamic bank is is a number of challenges in western society as a socially, economically, and the contract terms. Instead of all the Islamic Bank now traditional banks also offer Islamic banking services with traditional banks such as HSBC Amanah offers the authors name is his own account in the name Lloyds TSB Islamic current account.Ch. 3 Aims and ObjectivesThe United Kingdom is a non-Islamic country, the financial and banking rules to the highest degree of the traditional banking system, because it is an Islamic bank is facing difficulties in the wa y of his progress. In other words, these problems, big challenges in the Islamic banking business, if they work hard to develop the Islamic banking in a short time. The study aims to identify opportunities for development and growth of Islamic banking in the United Kingdom and who are the biggest problems currently facing from the Islamic banking in the world in general and the United Kingdom in particular. I have divided the investigation of issues in three different areas, know that the banks and the Islamic banking sphere of influence, because is difficult without a staple fiber understanding of information, develop the financial system, whether the opportunity for growth and development in the UK and what are the Challenges for Islamic Banking.This area will cover the basic and rudiments of Islamic banking. It shows if the community and banks have a better understanding of Islamic finance and its exercise then it will play important role for development of Islamic banking in the UK.How important is to know the fundamentals of Islamic banking for Muslim Community and services providers?Do Muslim community in reality believe and understand the difference of Islamic and conventional banking? What are the factors that form Islamic banking prior to conventional banking to Muslim community?How important is Shariah law and its practice for Islamic finance and the role of Islamic scholars in promoting Islamic banking services and its products?The main research objectives of this project to be intercommunicate are as followIs Islamic banking sector has a potential for product development? Whether Islamic banking is in position to satisfy its customers?Is Islamic banking has a potential to perform active role in the UK pecuniary Market and its growth in market development?Do Islamic banking able to enhance the investment opportunities in the UK and whether it can play declamatory role for the UK economy?Is there any affect of the UK environment (political, s ocial and geographical) for growth and development of Islamic banking?Is Islamic banking has proper regulatory and institutional framework in the UK?Whether Islamic banking has any problem in the UK in respect of supervision and scholarly committee?Is Islamic banking full instructive to its customers or facing any difficulty in its marketing sector?Is Islamic banking in position to survive and develop in the age of competition and globalization?