Islamic and conventional credit cards Assignment - 1

Islamic and conventional credit card - Assignment ExampleThe increased demand is not only from clients need for differentiated products but to a fault from corporations who want to carry out all financial dealings in conformity with sharia law laws. The increase populations of Moslem countries will additionally propel the demand for Sharia - compliant financial services. Many Muslim nations have young populaces, with more than 60% of the citizens under the age of 21 years, in addition to one-year population growth rates of more than 5%. Many conservative banks currently are too engaging in the Islamic Banking market due to its intrinsic feature of minimal exposure to operating(a) risk. Islamic banking, because of its strict Sharia submission norms, can help clients decrease the risks related to interest establish debt bankrolling that plagued conservative banks especially during the recent financial crisis that hit the mortgage market.In terms of supply, the main implicit in(p) principle of development in Islamic banking is the swelling amount of financial services establishments giving Sharia compliant business solutions. Along with the new Islamic banking institutions that are being designed, there is a underdeveloped tendency among current conventional banking institutions to transform their processes to become compliant with Sharia laws. With mounting business rivalries in their home markets, some Islamic banking institutions in the Middle East have begun to multiply globally, with a explorative attention to Africa and Asia. This amplified rivalry was leading to fresh advanced products being availed to the markets, therefore, rendering Islamic banking more enticing.The initial phases of growth in Islamic banking contend with the concept construction where Sharia specialists examined whether the interest those banks charged was kindred to riba. Before 1950s, Muslims were not officially engaging the banking services so, they did not have any informati on nearly bank interest (Shaikh n.d). A few years