Islamic Banking Financial System In Kuwait ? Obstacles And Challenges

Running Head : Islamic Banking Financial system in capital of KuwaitNameUniversityCourseTutorDate1 . IntroductionA monetary system of a country needs to compound its own financial tools , financial markets and financial establishments which are entrusted with the scattering and transfer of surplus liquidity to areas of deficit or those experiencing decline . It should be acknowledged that banks provide a pivotal portion in the development of a country through financial intermediaries (Zaher Hassan , 2001 However , controversies exist on how participation- found financial systems are in effect(p) in performing this role and preventing economic cyclical fluctuations . conventionally speaking , the entire international financial system is based on interest despite protests that banks charge exaggerated amounts of interests on loans and major world religions oppose the act of charging interest .

so far , usury has been there for a long time and is like with lending practices of conventional banksOn the other hand , the past a couple of(prenominal) decades has witnessed the tremendous growth and expansion of the Islamic finance pains globally (Archer Karim , 2007 . Islamic financial systems are especially mushrooming in Islamic states like Kuwait in which we have Kuwait Finance House (KFH and Boubyan bank among others . Islamic banking as it is or else called , conducts its practices as required of the Islamic Shari a law Shari a prohibits the charging and paying of interest and this application in the Islamic financial system has attracted umteen customers to Islamic banking . The Islamic financial system has undergone periods of a abstract framework development and then followed by experimentation...If you want to go about a full essay, order it on our website: Ordercustompaper.com

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