Authors: Salman Ahmed Shaikh
Addresses: Institute of Business Administration (IBA), Karachi, Pakistan
Abstract: Islamic banking has achieved exceptional growth in the last two decades and has been able to sustain it even during the recession and afterwards. In this paper, we highlight that lack of flexible financing options, incomplete product mix, scale diseconomies, contractual frictions and constraints in liquidity management are potential future challenges for this industry. The study also highlights growth opportunities by noting that Islamic banks in many jurisdictions are yet to enter into infrastructure financing for development spending, energy financing, investment banking and sovereign financing.
Keywords: Islamic banking; Islamic finance; interest-free banking; ethical banking; banks.
International Journal of Financial Services Management, 2014 Vol.7 No.3/4, pp.286 - 300
Received: 11 Dec 2013
Accepted: 05 Jul 2014
Published online: 29 Oct 2014 *