CHAPTER 6 : ISSUES IN INTERNATIONAL BANKING (
ISLAMIC BANKING ISSUES
PRICING FORMULAS FOR
ISLAMIC FINANCIAL PRODUCTS
:kiwifruit: It will involve accommodation of interests of the bank's principals, the banks staff and the fund-seekers.
MODUS OPERANDI OF FINANCIAL INSTRUMENTS AND DOCUMENTATION
:kiwifruit: Daily practices on modest operandi of implementation may vary from institution to institution.
VOCABULARY OF ISLAMIC BANKING
:kiwifruit: Different international bank use different terms
among them or from local banks.
:kiwifruit: Majority of Islamic bank use the nomenclature
Murabahah to stand for financing via sales on deffered payment,
known as Bai' bithaman Ajil.
:pineapple: With the availability of more hybrid financing modes than those recognized at present,
it is bound to be more versatile and efficient.
:pineapple: Public awareness can be done by including Islamic Banking concept in school curriculum
and making Islamic financing course a part of business administration program.
TRAINING OF BANKING PROFESSIONALS
:corn: There is a limited training institute and the moment Malaysia depends on Islamic Banking and Finance Institute Malaysia to meet manpower needs of existing and future Islamic bank.
:corn: For example: Lack of consensus on form and details of Islamic financial instruments and non-existence of Islamic reporting and accounting procedures.
SHARIAH AUDIT INSTEAD OF RELIANCE OF
:lemon: Islamic Banking model emerged as
"banking under Shariah supervision".
:lemon: This was done through the delegating authority for the
shariah matters to the respective shariah boards,
absolving Islamic bankers of their responsibilities in Shariah violations.
FINANCE GAP BETWEEN SLAMIC BANKS AND
SMALL MEDIUM ENTERPRISES (SMEs)
:peach: A finance gap can be detected when one takes a careful look
at the existing relationship between SMEs and Islamic Banks.