Overview of the study
The growing Muslim population worldwide calls for special attention to be given to Islamic banking. The current Islamic banking industry consists of several billions of dollars with more than 300 institutions operating in and out of the Muslim world. Islamic banking is one of the world’s fastest growing financial sectors, with industry estimates putting annual growth at 15 to 20 percent. Islamic consciousness among Muslims in Mauritius has witnessed a rise in the past five years. For instance, the number of applications to perform the Mecca pilgrimage has been on the increasing trend. In 2012, a large number of potential pilgrims had their booking fees refunded due to demand largely exceeding quota restriction on the number of people which was allocated to the country for the pilgrimage. If banks follow the international trend they need to get prepared to offer specialized products and services and to train their personnel in this field. Such a move requires substantial investment..
Mauritius has a minority of Muslim population with a long tradition of conventional banking. In Mauritius, Islamic banking has been very timid with no extravagant advertising campaign. In 2011, Mauritius opens first fully-fledged Islamic bank (Century Banking Corporation Ltd), as the country seeks to become a regional Islamic banking hub. The aim is to tap into the roughly $1 trillion Islamic finance industry. The viability of a bank depends to a large extent on the number of customers it can attract.
1.2 Objectives and aims
The purpose of this paper is to investigate customer’s perception about Islamic banking in Mauritius. As Islamic banking do not engaged in any activities which are prohibited by Islam, the study ...
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...Takaful members contribute money/ premium into a pooling system which make guarantee each other against loss or damage. Takaful is defined as a co-operation or a mutual insurance, this because members of takaful contribute a certain sum of money as premium in a common pool whereby losses are divided and their liabilities are spread.
6. WAKALAH (Contract/Agreement)
Wakalah is an agreement or a contract between two parties in this case it is the bank and its customer .The bank work as the customer ‘agent where it provide services on its behalf against a payment of a fees known as ujrah. If a customer as a saver enters into this agreement, the bank can use their money to invest in shariah compliant activities to generate profit for their clients. A wakalah agreement is not a transaction in itself, but rather a way/facility to enable transaction to take place.
The diversified culture is found in every country. There are different religions, culture and the ethics. Even the languages are different as compared. This makes a business to analyze these factors and consider the future aspects. The socio-cultural factors include the rising population, varied type of people, educational level which we call as literacy rate, norms and values and social responsibility. Literacy in the country is the main factor so that the educational level can be known. Literacy rate is high in the target market country which would be helpful for the company to operate its functions. Social responsibility is been accomplished by the company for the welfare of society. The business responsibility includes the expectations of the society towards a business. The customers, suppliers, stakeholders, government are the people who are benefited by the retail banking in the target
As I had began my journey across Africa, and the Islamic holy land of Mecca, I envisioned flourishing commerce and busy streets, and that is exactly what I had foresaw. The streets were bustling with markets and shops for the purpose of buying and selling. I can still remember the vibrant and strong smell of the spices hitting my nose as I pass by numerous stands. My restless pilgrimage to the Middle East was one worth remembering. The richness in the Islamic culture found throughout my
The Arab and Islamic Empire made some of the greatest contributions to the world during its reign. During a time when Europe was in the midst of the Middle Ages was cut off from the rest of the world, the Arab Empire flourished with trade and intermingling. As Christian Europeans struggled to reclaim Jerusalem for themselves with the Crusades, the Muslims’ vast territory not only housed Jerusalem, but Mecca, and land as far as Cordova, Spain. Where European Medieval doctors were untrained and performed numerous amputations, and leeching, Islamic doctors studied and practiced advanced medical treatments. The Muslims made great contributions to education, science, and trade alike. The Muslims were able to make contributions that impacted the
It is true that the Western World owes its science to the Muslim World. Partly because of their strive to learn from others and opening their finding to everyone. If the Muslim World was not this open and inquisitiveness of others besides them self, we would all be in the Dark Ages and deprived of all history not recorded in our native tongue.
The United States of America is the society I am using to compare to the Golden Age of Islam. Just like the golden age, the United States of America, in the 21st century is like it. It is like the Golden Age because just like the golden age of Islam; it has artistic, medical and technological, economics, politics, and social developments.
The modern Islamic Finance industry is young, its timeline begin only a few decades ago. However, islamic finance is involving rapidly and continues to expend to serve a growing population of muslims as well as conventional.
The golden age of Islam, starting in the 16th century and ending in the 19th century, was a time when intellectuality thrived within an Islamic environment and the Muslim state was strong. During this time, European, North African, and Southwest Asian nations had maintained a relatively symbiotic relationship through trade, colonialism, and adaptation of ideas. The Muslim world began to languish during the 19th century when European Imperialism turned to the Middle East. This decline was also a result of the rejection of European science and education by Muslims. Their failure to learn from European advancement was sustained by reliance on a “religious filter” of scientific and technological information.
MCB is the most reputed banking institution in Mauritius while providing an augmented prominent foothold in the surrounding. Supported and bearing of sound business model modern and adapted channel capabilities and very good customer care the bank has been a model in the history of its leading principles in the advancing of individual. Supported and bearing of sound business model modern and adapted channel capabilities and very good customer care the bank has been a model in the history of its leading principles in the advancing of individual. It cooperates a lot to the economy of the country and now that bank is being diversified worldwide.
Jamaica's approximate 2.5 million bank customers enjoy the benefits of strong competition in a deregulated banking system. The dilemma is that we only get benefits from non-price competition while the real benefits of lower lending rates and higher deposit rates are nothing but a fleecing illusion to be pursued but never attained. Jamaica commenced moving from a regulated banking system to a more open competitive sector in the 1990s. While competition has affected many areas of the banking industry, there are two areas that illustrate this change more than others: marketing promotions and product choice. This competition however, has not brought about significant savings for customers due to the Oligopoly market conditions that exists, thus a much narrower choice of commercial banks are now available to the Jamaicans.
The history of the island starts from its discovery by the Portuguese in 1507. The explorers found this island devoid on any indigenous people. The Dutch settled in 1638 and abandoned in 1710. Later, the British took control with the country acheiving its freedom in 1968 and thus began its economic cycle. The country has evolved from a low income based agricultural economy to middle income diversified economy. The country thrives mostly on tourism and textiles. The country is another paradise besides Switzerland providing people with its unique financial services, in other words a safe haven. Island, beaches, safe haven, well all this is enough for the Mauritians to attract the attention of Indians. While the wives and kids enjoy the scenery and the beaches on the wonderful island, the husbands make sure to make a visit or two to near-by banks. Well all this said and done, lets talk about the more important investors, the Government Of India and other private entities. Mauritius has become an important business hub because of its strategic location on the map. It is the main...
The study is primarily designed to find out the continuous issue of the banking system in
Today, global retail banking sector is grappling with a myriad of challenges. The business environment has never been as difficult before, as it is now. In past years, especially post the global crisis in 2008, the industry has been characterized by rising costs to retain existing customers and add new ones, depressed profits, muted economic activity and low consumer confidence in investments. Citibank, the third largest bank in the US, closed its retail business in 11 markets across the world that were not profitable, to lower its operating expenses. It’s worth noting some of the vital factors that have put retail banking on cross-roads.
The Islamic market is being very profitable, but the effectiveness of the operations has been relatively limited due to lack of development of the business unit due to the short existence of the moderm history.
The Traditional Theory of Banking In this paper author review the traditional theory of banking and attempt to examine the theoretical reasons for why banks exist. As a financial intermediation, the natures of the banks are to provide financial services and conduct the intermediary functions in the whole financial system by accepting deposits and making loans. The question raised here are how they conduct these roles and why the borrowers and lenders do not come together without the banks for the saving of intermediation costs, why both of the two parties are ready to pay for their services and what’s the value added by the banks? The paper proceeds as follows. Section 2 offers a traditional view of banks and describes the nature of them.
The general objective of the study is to assess the effects of mobile banking on the prospects of the banking industry