Prospects and Challenges of Establishing Islamic Banks in Ethiopia
No Thumbnail Available
Date
2008-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
The purpose of the study is to identify the prospects and challenges of establishing Islamic banks. Seventy five survey instruments were distributed to assess the views of the Muslim business community's awareness and attitude towards Islamic banking and banking in general. The study also addresses favorable conditions and also challenges in the establishment of Islamic banks. Books and articles from several websites were extensively used in addition to the questionnaires. The study showed that even if there is
low awareness level among Muslim community about Islamic banking products, establishment of Islamic banks is highly required by the Muslim business community. The study further showed that there are challenges like lack of professionals in the field of Islamic banks. The study recommends that Islamic banks, which basically works under the scheme of profit and loss sharing, should be established to cater divergent needs of different customers particularly those who do not want to deal with interest. It also
recommends high level of support from the government particularly effective legal framework ensuring speedy justice is essential for the success of Islamic banking
Description
Keywords
challenges of establishing, establishin