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Benchmarking of Financial Solutions Offered by Islamic Banks

Benchmarking of Financial Solutions Offered by Islamic Banks

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It is general perception of public that financial solutions and products offered by Islamic banks are similar to conventional banks and therefore both contains the element of interest when product prices are considered. As the system is in the evolving stage so there are many factors which hinders its acceptability amongst the general public as people are confused about the Shariah (law of Islam) compliance of its products. Moreover, Islamic banks might be offering financial solutions which might not be having as attractive returns as conventional banks. So if all the principles of Islamic laws are not followed, customers may be at disadvantage and suffer loss due to some constraints in the contract. There is immense competition in banking sector globally and specifically in Pakistan in recent years. The growth of Islamic banking has created competition not only among Islamic banks but with conventional banks as well. So from customer’s perspective, we need to know which banking solution is more economical and flxible.Here We critically analyze and compare solutions of Islamic banks against conventional banks.
Critical analysis and comparison of financial solutions offer by Islamic banks against conventional banks