Islamic Banking and Finance: Fundamentals and Contemporary Issues

Mahmood Ahmad

Table 13: Causes of Interest Creeping into the Islamic Banking System
Causes Bankers Customers Total
a) Exploitation is going on through Islamic
system of banking

38% 53% 45%

b) Products of Islamic Banking have failed

to remove the curse of interest from

financial transactions.

28 11 19

c) Banking professionals have led Islamic

system of Banking to the garb of interest

based banking

16 23 19

d) Islamic system of Banking was introduced

in a society, which was not re-organized

on Islamic ideology.

18 13 16

Source: Field survey data, 1998. Note: Figure indicates the percentage of total.

Table 14: Present Success of Islamic Banks is Not in Conformity with Shari[ah
Causes Bankers Customers Total
a) The status of Shari[ah Council/
Department is advisory, not
supervisory in the system Islamic
Banking

28% 37% 32%

b) Earning of profit cannot be the

success criterion

42 28 35

c) Justice and welfare in financial

transactions are not ensured by

Islamic Banks

18 22 20

d) Exploitation still remains in Islamic

banking system

12 13 12

Source: Field survey data, 1998. Note: Figure indicates the percentage of total.

Table 15: Causes of Not Patronizing the Islamic Banks by Rich and Prominent
Muslim Businessmen and Industrialists
Causes Bankers Customers Total
a) They do not find any real business
differences between Islamic and
conventional banking

69% 78% 73%

b) Not conscious about Islamic

banking.

12 7 10

c) Confused about Islamic Banking 9 10 10

d) They are not motivated to I-Banking 10 5 8

Source: Field survey data, 1998. Note: Figure indicates the percentage of total.