Ch. 1 Introduction 引言
This chapter provides a brief background of Islamic banking in the world as well as in the UK about its system and practice. The Islamic financial law has long history but Islamic banking and finance industry came into existence with Profit and Loss Sharing investment.
Egypt’s Mit Ghamr Saving Banks in 1963. After official existence Islamic banking has grown in the area of finance, banking, insurance, mortgage, and assets management business with annual growth rate of 10-15 %. But actual development in Islamic banking is started after 1970 with new investment techniques, strategies and product development (Steward, 2008). Dubai Islamic Bank (DIB) is known as world first Islamic bank it was formed 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 banking is a relatively little known in the West, and greater interest in disgust. The idea of “Islamic Banking”, but contains much more than the prohibition of interest. Islamic banking shows that ethics and finance can be connected to serve the society. The idea is to eliminate the banking system of injustice in the society. A clear link with the religion of Islam can lead to mistrust among the citizens in the West, perhaps out of fear of the unknown. Today’s 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 ethical values for the first time it will be utopia, the economic actors in the world. Attitudes are changing, but slowly, and in recent years, the value of the traditional banking system, which has begun to look neutral, the conscience of a growing number of people. Author do not want to funds, banks and financial institutions, releases to companies which invest ethically and socially harmful act. The aim of this study is the question of “Islamic banking important to clarify and explain some of their links to politics, history and religion. Islamic finance is on Islamic law Sha’riah that offers all the solutions and economic problems of the foundation. Under Islamic law, interest completely forbidden in Islam, because the interest rates very negative impact on society, such as the ability, purchasing power and increasing poverty, uneven distribution of the credit crisis and the economy. According 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 agreed terms and conditions (Usmani, 2005). I’s allegations that investment in Islamic 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. Economic 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 sharing profits and losses. Islamic financial system is based on the sharing 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 United Kingdom. Islamic finance has a number of challenges in the UK because the financial system is attractive to the traditional banking system, but the Islamic banking has great potential in the United Kingdom because it has less to five years in an Islamic bank carried out a significant role in the British financial markets .
Ch. 2 The Problem 问题
According to the figures of Office for National Statistics 2001, there was 2.2 million (3.4%) Muslims living in the United Kingdom (National Statistics, 2010), but according to Home Secretary the Muslim population 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 population (Guardian, 2010)
There was no way available 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 strictly forbidden, and they want banking services such as savings accounts, checking accounts, mortgages, insurance and loans, backed 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 community has an active role 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 Financial Services Authority. By 2003-2009, there is sufficient improvement and development of Islamic banking. There are currently 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 author’s name is his own account in the name Lloyds TSB Islamic current account.
在2000年之前，联合王国的穆斯林没有办法，但穆斯林人口将为他们的信仰而牺牲自己的生命。根据伊斯兰教育的利益，伊斯兰教是严格禁止的，他们想要银行服务，如储蓄账户、支票账户、抵押贷款、保险和贷款，伊斯兰法律的支持“里亚赫。联合王国是一个非穆斯林国家，其所有金融规则和传统银行体系的规则。虽然穆斯林社区在经济中发挥着积极作用，但没有必要建立一个能够开始接受这些人的体系。伊斯兰银行业始于2003年，因此英国金融服务管理局。到2003-2009年，已经有了足够的改进和发展伊斯兰银行。目前，传统银行和伊斯兰银行有两个主要部分，即整个伊斯兰银行。但伊斯兰银行业正处于成长和初创阶段，而伊斯兰银行作为一个社会、经济和合同条款在西方社会面临诸多挑战。除了现在所有的伊斯兰银行，传统银行也提供伊斯兰银行服务。传统银行如HSBC Amanah提供。作者的名字是他自己的账户，名为Lloyds TSB伊斯兰经常账户。
Ch. 3 Aims and Objectives 宗旨和目标
The United Kingdom is a non-Islamic country, the financial and banking rules most of the traditional banking system, because it is an Islamic bank is facing difficulties in the way 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 sector, because is difficult without a basic 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 fundamentals 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 really believe and understand the difference of Islamic and conventional banking? What are the factors that make Islamic banking prior to conventional banking to Muslim community?
How important is Sha’riah 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 addressed are as follow: 本项目的主要研究目标如下：
Is 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 Financial Market and its growth in market development?
Do Islamic banking able to enhance the investment opportunities in the UK and whether it can play prominent role for the UK economy?
Is there any affect of the UK environment (political, social 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 informative 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?