Islamic Banking: Its Structure, Growth,
and Influence in the International Market
October 10, 2013
Islamic banking focuses on rules and regulations set forth by one of the five tenants established in the Qur’an, or the Islamic Holy Book. This financial system wants to fulfill the teachings of the Holy Book while still making money through the system of businesses. According to Zakah, Muslim’s are not to be greedy. This helps guide the tenants of Islamic banking. This means no interest that can be charged on business deals or not riba. This produces a problem, but discussed in this paper is how the credit crisis did not affect the Islamic banking industry. The ability to rebound during such a global crisis, Islamic banking showed that the banking can compete against the conventional banking, just with a different set of rules and regulations. This shows that there is bound of be growth in the international market with the Islamic banking industry.
Islam means peace and submission. Muslims try to achieve peace within their life. They want peace in their life as well as their afterlife. Islam is a religion based on revelation that believes in One God and the guidance revealed by God to the prophets (Qur’an 3:84).
The Muslims follow a Holy Book called the Qur’an. They believe that this text was created through a series of revelations. The words were revealed in Arabic to the Prophet Muhammad throughout 23 years. They were revealed to the Prophet Muhammad by the Archangel Gabriel. This all happened within the 7th century. The Qur’an consists of around 600 pages. Many memorized the Qur’an and the first Qur’an was put into writing only two years after Muhammad’s death. This gives the Qur’an historical authenticity, which helps solidify the authenticity of Islamic banking and the tenants behind Islamic banking.
One of the five pillars of Islam is Zakah, which is the purification of wealth....