Islamic Banking : a South-East Asian perspective

Abstract

Islamic banking is a system of banking or banking system that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Islamic banking is a field under the Economic discipline of Islamic Jurisprudence. The motive of this study is to explore the Islamic banking industry and its growth in the South-East Asian market. Also, we will analyse how the Islamic banks have performed over the last few years and particularly, during the global recession period. To help with our study, we will look at the Islamic banking industry of the South-East Asian countries of Singapore, Malaysia and Indonesia. On a more narrow and detailed focus, we will be focussing on Singapore. This study can help us understand better some important things: First, a banking system which follows the principles of the Quran which is monitored by a religious committee. Second, as an industry whose market size is vast and spread worldwide, it is very important to understand the potential consumers in order to sell the products and services. Last, the changes needed in its strategy in order to reach more consumers and at the same time, satisfy their needs.