Chapter 1: Introduction
1.1-Introduction to Chapter:
This chapter describes the brief introduction about research title, research aims, research objectives, research hypothesis, research context and research limitation used in this research.
1.2-Research Title:
Financial performance of Islamic banking and conventional banking in United Kingdom- A Comparative Study.
1.3-Research Aim:
The Aim of this research is to analysed and evaluate the financial performance of European Islamic Investment Bank (UK) with Allied Irish bank (UK) and Northern Bank (UK), In Terms of their Profitability, Liquidity, Risk & solvency & Efficiency Ratios which will give an insight comparison of overall financial performances of European Islamic Investment Bank with Allied Irish bank And Northern Bank.
1.4- Research Objective
Research Objectives are set of goals which researchers intends to make from the research conducted. By Comparing financial performance of Islamic bank with other two conventional banks researcher can measure the overall financial health over the given period of Islamic bank.
To understand the financial performance of Islamic bank.
To understand the principles of Islamic banking and apply the knowledge in practice.
To make the audience aware of the importance of and concept of Islamic banking.
Based on research findings to propose recommendations for better financial performance
1.5 -Research Overview:
The Term Islamic banking (which is also known as Islamic finance) refers to the way of doing commerce and transactions which are Sharia compliance. For Islamic banks to work it must fully comply with Sharia .This type of Islamic economic system has now become a point of central attention in Islamic world...
... middle of paper ...
...ore than five years data would be available.
REFERENCES:
Venardos. Angelo, 2006, Islamic banking & Finance in South East Asia: Its Development and Future, Volume 3 of Asia-Pacific Business Series, Second Edition, World Scientific Publishers
El-Gamal, M. Amin (2006), “Overview of Islamic Finance.” Office of International Affairs
Occasional Paper No. 4.
“FSA encourages growth of Islamic Finance in the UK”, FSA (2007), “Islamic finance gears up”, IMF (2005).
“Regulation and Islamic finance”, FSA (2006), “London becomes centre for Islamic finance”, Dawn.com (2008),
“London: Centre of Islamic finance”, FSA (2007), “Islamic Bank of Britain going strong”, UkInvest.gov.uk (2008).
USEFUL WEBSITES:
www.northernbank.co.uk accessed on 23-05-10
www.inter-alpha.com/aib/default.htm accessed on 23-05-10
www.eiib.co.uk accessed on 23-05-10
This is a report on the operations of J. Sainsbury Plc and Morrisons and will focus on a financial analysis and comparative analysis, from which an evaluation will be drawn on to determine which of the two companies would seem to be a more viable investment to a potential investor. My report is going to focus on using ratio analysis to look at the liquidity, profitability and gearing of Sainsburys and Morrisons. Both companies work in the same industry and are competitors. I will use various ratios to analyse their company accounts and finally comment on the best performing company.
It is hard to judge how successful the acquisition of Abbey by Banco Santander was because only less than 5 months have passed. The positio...
The purpose of this report is to indicate the financial position of British Petroleum as compared to its competitors. British Petroleum is the world’s seven super major valuable oil and Gas Company and is the constituent of FTSE 100. The company operates through 17800 service stations all over the world and produces about 3.2 billion barrels per day. The company conducts in operations in almost 80 countries. By market capitalisation the company is ranked at sixth position and has been ranked as fifth in terms of revenue generation in the oil and gas industry. (British Petroleum , 2006). This report analyses the financial position of British Petroleum by analysing its current performance to its last year performance and by analysing the performance
This short report aims to give a brief overview of Deutsche Bank’s alarming situation and describe the sharp decrease of its profitability. It will briefly introduce the context of this crisis and aim to explain it through an analysis of one of the most used indicators of performance for banks, the return on equity (ROE).
In response to the question set, I will go into detail of the study, consisting of the background, main hypotheses, as well the aims, procedure and results gathered from the study; explaining the four research methods chosen to investigate, furthering into the three methods actually tested.
In this assignment I will introduce my research project and examine some of the issues surrounding my topic, take an initial look at the research papers I have chosen for my literature review and consider the wider context that the research took place in.
The objective of this report is to give an overall view on research and analysis to regards of two companies, Wm Morrison Supermarkets Plc and Tesco Plc that I have chosen for. In this report, I will be comparing two companies’ financial analysis based on their comprehensive income and balance sheet for one year; and also will be comparing their generating cash ability, cash management and financial adaptability based on statement of cash flows for the past two year and also determine whether the two companies have the ability to repay their debts to their creditors, generating into cash and going concern which related to finance.
Rahman, Fazlur. Islam & Modernity: Transformation of an Intellectual Tradition. Chicago: U of Chicago, 1982. Print.
The data provided by the Near East Bank for the purposes of this study not only included 10 years of data (2004-2013) but also rendered all figures in 2013 USD. To facilitate calculation, these figures were then rendered into millions of USD. For reasons of privacy, the Near East Bank did not send identified data, as private banks in TRNC are not obligated to disclose their financial data to any party other than the Central Bank of TRNC itself.
Islamic finance is a financial system that operates according to Islamic law (which is called sharia) and is, therefore, sharia-compliant. Just like conventional financial systems, Islamic finance features banks, capital markets, fund managers, investment firms, and insurance companies. However, these entities are governed both by Islamic law and the finance industry rules and regulations that apply to their conventional counterparts. Therefore, islamic finance is to be assets based as oppose to the currency based whereby investment structured on exchange or ownership of assets, and money is simply mechanism for transaction process. It would based on two sources which are Al-Quran and As-Sunnah.
Now within the rest of this paper you will be finding a few different things getting discussed. Staring it off we will be discussing the articles that we have found to make our arguments and hypotheses. After wrapping up the literature reviews we will be discussing the hypotheses thus continuing onto our variables and indicators. Once we discuss our hypotheses we will be moving onto the research design. The research design will have our general issues, sampling, and methods.
As the world has recently passed through the global financial crisis that begun in 2008 in the USA with the banks’ collapsing, analysts are giving different opinions and making new economic hypothesizes about the origin of, as well as the process of different countries escaped from the crisis. Among all these new “theories”, the case of Islamic banks is interesting in terms of its nature and consequences. In my essay, I will try to highlight the basic principles of the Islamic finance, the reasons of the restriction of interest, the most important tools used by Islamic banks in economic activities and brief explanation of them, and finally my view point of the probable future improvement of the Islamic financial system.
As such, the nature and characteristics of risks that Islamic banks are exposed to should be different from conventional banks. IFIs have come up with various structures as Islamic versions of hedging instruments to minimize the risk of market fluctuation including foreign currency exchange rate risk and other market risk. (Saadiah Mohamad, 2014)
Striating from the research idea to the culmination of the findings, the research process entails many segments, all of which are imperative. By choosing the research methodology, the researchers can formulate the path to be used in conducting the study and reporting the findings. The methodology helps in the search of literature, development of research questions and the creation of the most suitable study design. It also assists in the interpretation of the results and the publication of the findings in journals.
A variety of groups are concerned in bank profitability for various reasons. The bank shareholders would want to know if the value of their investments is high or low. The investors also use current and past performance to predict future price of the banks’ shares traded on the stock exchanged. The management of the bank as trustee of the shareholders is evaluated and compensated on the basis of how well their decisions and planning have contributed to growth in assets and profits of their banks. Employees of bank also are concerned with profits, since their salaries and promotions are frequently tied to the profitability performance of their banks.