Three Views on Islamic Finance Essay Example | Topics and Well Written Essays - 500 words

Three Views on Moslem Finance - Essay causeThey point out that it is necessary for Moslem fianc to avoid riba by ensuring that differed debt payments are similar to the amount of loan. Islamic finance is also perceived by some to essentially be in a transitional state as it is somewhat in disunity with Shariah laws and as such, there are still a return of amendments that need to be made before it can finally be considered as being a primary financial mainstream. In my judgment, I support the first postulation that points out that it has been necessary for Islamic finance to replicate some of the ceremonious structures (El-Gamal, 2006). This is because failure to adopt such structures will essentially return in their returning minimal profit margins. On the current trajectory pointing out that Islamic finance is currently flying high albeit on what can be considered to be borrowed wings, I am of the opinion that this statement is essentially true. The popularity of Islamic fin ance has seen it quickly become quite popular in Islamic countries. However, the minimal profit margins that Islamic banks stand to make due to Shariah policies that cause them not to maximize on interest charges means that these banks are largely expensive, and not able to effectively compete with the more conventional banks which are well established not only in Islamic countries but also in the non-Islamic countries (Henry & Wilson, 2004). Speed should never be perceived to be a virtue in the event that it is unflinching that Islamic banking is going in the wrong direction. This is because it will be prone to make more errors whose ultimate consequences might either cripple or completely destroy its structure.