Islamic Banking - Sharia-compliance of the product portfolio of Islamic banks

Abstract

Religion shapes every aspect of life of Muslims, including the way they do finance or trade. The steadily growing number of Muslims globally has raised the demand in Islamic products. Thus, the main feature of Islamic financial institutions is that it is run in accordance with the Islamic law. It is most vital for their existence to be correct from a religious point of view. Therefore, Sharia sets principles for the Islamic banks. However, when implementing and practising Islamic banking, it is of utmost importance to evaluate the factors making Islamic banking products accepted.