14 August 2008

Islamic Banking Means Western Opportunity

Muslims have particular banking needs -- and few venues to fulfill them

by Nurul Islam
Fulfilling the requirements of an Islamic customer base and complying with Islamic banking principles isn’t easy, and few banks do it well. But for any bank serving a large Muslim population, the effort can be worth it.
Nurul Islam is an Engagement Manager for Gallup.

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Reader Comments
Gregory Starr on 8/20/2008 10:51:31 PM

From this article, there is plenty of incentive for Islamic money to be placed in the hands of U.S. banks. I'm writing this partially to create a model that I'll gladly modify with new information. In a way, Islamic Financial institutions are stuck because they exist within the Islamic community and are subject to collective scrutiny. If the institution wants to be closely associated with Islam they have to follow Islamic rules. But... from what has been said there is no prohibition of having the money invested elsewhere outside the country and allow the money to be managed by that counties rule. The whole process is less of an insult to Islamic law. Now oil supplies are beginning to run out in some of the middle eastern countries. There may be a greater tendency to move money into less restricted financial institution,like in the United State. Now going way out on a limb, someone might actually predict a boom in the stock market similar to the movement of money to the U.S. just before Hong Kong was returned to China. As with the previous windfall, the influx will be finite, There may be money to be made during such a precariously imagined boom but the result would be temporary and the U.S. would be alone again.

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