Islamic Banking Financial System In Kuwait ? Obstacles And Challenges

Running Head : Moslem Banking Financial system in capital of KuwaitNameUniversityCourseTutorDate1 . IntroductionA monetary system of a country call for to compound its own monetary tools , fiscal markets and financial establishments which be entrusted with the scattering and transfer of surplus liquidity to areas of deficit or those experiencing decline . It should be acknowledged that banks provide a diametric portion in the cultivation of a country through financial intermediaries (Zaher Hassan , 2001 However , controversies exist on how participation- found financial systems are in effect(p) in performing this role and preventing stinting cyclical fluctuations . conventionally speaking , the entire international financial system is based on interest despite protests that banks stir up exaggerated amounts of interes ts on loans and major world religions oppose the act of charging interest .

so far , usury has been there for a long time and is bid with lending practices of conventional banksOn the new(prenominal) hand , the past a couple of(prenominal) decades has witnessed the tremendous branch and expansion of the Islamic finance pains globally (Archer Karim , 2007 . Islamic financial systems are especially mushrooming in Islamic states like Kuwait in which we have Kuwait Finance hold (KFH and Boubyan bank among others . Islamic banking as it is or else called , conducts its practices as take of the Islamic Shari a law Shari a prohibits th e charging and paying of interest and this a! pplication in the Islamic financial system has attracted umteen customers to Islamic banking . The Islamic financial system has undergone periods of a abstract framework development and then followed by experimentation...If you want to go about a full essay, order it on our website: BestEssayCheap.com

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