Mornay Roberts-Lombard’s Post

Islamic banking in the GCC is set to outpace conventional banking, driven by rising demand and ethical finance solutions. The growth is fueled by innovation, regulatory support, and evolving consumer preferences. A recent Moody's Ratings report. https://lnkd.in/gkFDNDws #IslamicBanking #GCCFinance #EthicalBanking #BankingInnovation #ShariaFinance #FinancialGrowth #GCCEconomy

The Relevance of Islamic Banking in the GCC

Islamic banking is based on strong foundations, since it relies on the Shari'a rulings and principles derived from Quran and Sunnah. Beauty about Islamic Banking: Islamic banking is the first where a customer, whether individual or corporate, isn't just a customer, but is a partner with the bank or owner of goods or assets. This means they share the risks, as well as the profits of such a partnership or ownership. In my opinion, transparency & digitalization has to be one of the most important component of islamic banking nowadays.

ANTI ISLAMIC BANKING RESOURCES Based on the search results provided, here are some key anti-Islamic banking and finance resources: 1. Video: "Islamic Banking is an Oxymoron" featuring Harris Irfan. This video discusses issues with Islamic banking, questioning whether it truly adheres to Shariah principles or simply repackages conventional financial products. 2. Video: "Is Islamic Banking Really Islamic? An Insider's view with Harris Irfan". This in-depth interview explores various criticisms of Islamic banking, including: * Investment banks abusing Islamic finance principles * The use of fractional reserve banking in Islamic banks * Regulatory issues and lack of true risk-sharing * Concerns about Islamic scholars' economic expertise * The "Doomsday Fatwa" and making haram (forbidden) practices halal (permissible) 3. Article: "Why Is Islamic Banking Controversial?" by Mehdi Baddou. This LinkedIn post discusses several controversies surrounding Islamic banking, including: * Differences in practices across jurisdictions and institutions * Similarities to conventional banking in money creation * Criticisms that Islamic banking merely replicates conventional banking with Arabic terminology These resources highlight various criticisms of Islamic banking, questioning its authenticity, effectiveness, and adherence to Shariah principles.

Islamic banking, in its current form, raises important questions about its authenticity. While it is marketed as a Sharia-compliant alternative, it operates similarly to conventional Western banking systems, with only superficial differences. The core issue lies in the fact that what is labeled as 'Islamic' often doesn't align with the true principles of Islamic finance. In Pakistan, many religious leaders and scholars involved with this system seem to be endorsing a Western financial model under the guise of Islamic banking. This approach compromises both the spirit of Sharia finance and misleads the public, seemingly driven by the pursuit of wealth and recognition. It’s time for a deeper conversation about the future of truly Islamic financial systems and how we can ensure that they reflect the values they claim to uphold. https://lnkd.in/dKrtNjrA

Great! Islamic banking is essential to fast-track socio-economic development in the region.

Interest-Free Banking Where Profits, Risks are Fairly Shared For Ethiopians observing Ramadan, the holy month becomes a time of introspection that extends beyond personal piety. It’s a period to reflect on all aspects of life, including financial dealings. This is where Interest-Free Banking (IFB), also known as Islamic banking, resonates deeply with many. IFB operates on core principles that align with Islamic teachings. One key concept is the prohibition of riba, which refers to usury or interest. Instead, IFB utilises profit-sharing models like Mudarabah. In a Mudarabah agreement, the bank acts as an investor, providing capital for a project or venture. The client uses their skills and effort to manage the project. Profits are then shared according to a predetermined ratio, fostering a sense of fairness and shared risk between the bank and the client. Read more: https://lnkd.in/dc89ZRQg

"Balancing Competition and Efficiency in Tunisia's Banking Sector: Challenges and Strategies" ✓ The challenge of examining the relationship between competition and efficiency in the Tunisian banking sector lies in the delicate balance required to foster a dynamic market environment while optimizing operational performance. This necessitates navigating challenges such as market concentration, regulatory frameworks, technological advancements, customer preferences, risk management, and socioeconomic impact. Achieving this balance demands a comprehensive understanding of how these factors intersect and influence each other, requiring collaboration among policymakers, regulators, and industry stakeholders to implement strategies that promote healthy competition, encourage efficiency improvements, and contribute to sustainable development in both the banking sector and the broader economy. Moreover, it examines the reciprocal relationship, scrutinizing how efficiency levels dictate banks' competitive positioning, affecting their ability to offer compelling rates and services, and thus molding market dynamics and consumer choices. Furthermore, it critically assesses the regulatory landscape, evaluating its efficacy in harmonizing competition and efficiency while upholding financial stability and safeguarding consumer welfare. Successfully navigating these complexities is imperative for striking the delicate balance necessary to foster a vibrant yet stable banking environment, which is pivotal for Tunisia's financial sector's sustained growth and development.

Islamic banking, which operates under Shariah-compliant principles, offers a unique financial model that avoids interest-based transactions and promotes ethical investment. However, its adoption in Pakistan has been relatively slow despite the country's significant Muslim population and growing demand for Islamic financial products. 𝐊𝐞𝐲 𝐅𝐚𝐜𝐭𝐨𝐫𝐬 𝐂𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐧𝐠 𝐭𝐨 𝐒𝐥𝐨𝐰 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧: 𝐋𝐚𝐜𝐤 𝐨𝐟 𝐀𝐰𝐚𝐫𝐞𝐧𝐞𝐬𝐬 𝐚𝐧𝐝 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠: Many consumers are not fully aware of the principles and benefits of Islamic banking. This lack of understanding often leads to misconceptions and hesitancy in switching from conventional banking systems. 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐏𝐫𝐨𝐝𝐮𝐜𝐭 𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠𝐬: Compared to conventional banks, Islamic banks in Pakistan often offer a narrower range of financial products and services. This limitation can deter potential customers who seek diverse banking solutions. 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐚𝐧𝐝 𝐈𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐢𝐨𝐧𝐚𝐥 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬: The regulatory framework for Islamic banking in Pakistan is still developing. Inconsistencies and gaps in regulations can hinder the growth and integration of Islamic banking into the mainstream financial system. 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐀𝐜𝐜𝐞𝐬𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐈𝐬𝐬𝐮𝐞𝐬: Many regions in Pakistan, particularly rural areas, lack adequate banking infrastructure. This limited accessibility affects the reach and convenience of Islamic banking services, slowing down their adoption. 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐂𝐨𝐧𝐯𝐞𝐧𝐭𝐢𝐨𝐧𝐚𝐥 𝐁𝐚𝐧𝐤𝐬: Conventional banks are well-established and often perceived as more accessible and reliable. Islamic banks face stiff competition from these institutions, which have larger customer bases and more extensive networks. 𝐏𝐞𝐫𝐜𝐞𝐢𝐯𝐞𝐝 𝐏𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐑𝐢𝐬𝐤 𝐂𝐨𝐧𝐜𝐞𝐫𝐧𝐬: Some potential customers view Islamic banking as less profitable or more risky compared to conventional banking. Addressing these perceptions is crucial for increasing adoption rates. To accelerate the adoption of Islamic banking in Pakistan, it is essential to raise awareness, expand product offerings, enhance regulatory support, and improve infrastructure. These efforts can help build trust and attract a broader customer base, ultimately integrating Islamic banking more deeply into Pakistan's financial landscape. #IslamicBanking #PakistanFinance #ShariahCompliance #FinancialInclusion #BankingSector #EconomicGrowth #Mawazna #PersonalFinance #islamicfinance

Transparency in Islamic Banking: A Cause for Concern The anonymity of the owner of Nfic, a Kuwaiti company holding a major share in Meezan Bank, raises significant concerns. When the identity of those controlling a leading Islamic bank is unknown, it casts doubt on the bank's adherence to Shariah principles. Islamic banking is built on ethical standards and accountability. Without transparency, these principles are compromised, and trust in the system is jeopardized. Stakeholders have a right to know who is guiding the institutions they rely on. To uphold the integrity of Islamic banking, transparency must be prioritized.