Page 39 - The Pakistan Accountant July-September 2017

Islamic Banking (GIFR) 2015 predicted that Islamic financial assets would reach US The main reasons why Islamic banking is increasing in non-Muslim $5.3 trillion by the end of 2020. countries are: Islamic Banking in All Over the World Islamic banking has gained popularity in non-Muslim countries. Success of conventional microfinance Hang Seng Bank, the second largest bank in Hong Kong and a In majority of the Muslim countries like Indonesia, subsidiary of global banking giant HSBC, launched in 2015 the conventional microfinance is a huge success indicating Hang Seng Islamic China Index Fund, Hong Kong’s first Islamic the scope for Islamic microfinance in those countries. fund. Tunisia and Morocco have also authorised their first Islamic banks this year. According to experts, Islamic banks are present in Australia, China, Japan and other parts of the world. Religious reasons Islamic banking report according to world economic forum: In the Middle East and North African countries, people find conventional financial products incompatible with their religious briefs. Global share of Islamic Preference for Shariah compliance finance banking assets, 2015 In majority of Muslim countries especially in Gulf Cooperation Council (GCC) people prefer Shariah compliant finance. Saudi Arabia 31.70% Encouragement by banks Islamic commercial banks have started services such as micro credit, insurance savings, and debit and credit Malaysia 16.70% cards. UAE 14.60% Improved regulation Islamic finance regulatory institutions all over the world are playing active role in promotiong Islamic finance. Kuwait 10.50% Conclusion Qatar 7.70% In a nutshell, we can say that there is a need to implement Islamic banking and finance in the country. It will not only provide religious satisfaction but also play an important role in equal distribution of resources between the rich and the poor, as the difference is increasing day by day. Government of Pakistan should take radical Turkey 5.80% steps for complete implementation. Due to interest based banking, Pakistan’s economy is not flourishing at the rate it should be. References Indonesia 3.80% 1. Islamic-banking.com. Institute of Islamic Banking and Insurance http:// www.islamic-banking.com/prohibition_of_gharar_masir_riba.aspx 2. Islamic Economics Project. https://islamiceconomicsproject.wordpress. com/islamic-economics-in-quran-hadith/ 3. Slideshare.net. islamic banking http://www.slideshare.net/guest523e01f/ Bahrain 1.70% islamic-banking-4003133 4. Financeinterestfree.blogspot.com. http://financeinterestfree.blogspot. com/2011/03/islamic-banking-and-mode-of-financing_18.html 5. Theislamicbanker.com. The Islamic Banker http://www.theislamicbanker. com/history_islamic_banking/ Pakistan 1.20% 6. Wikipedia. Islamic banking and finance. 2016. 7. Marc L. Ross C. Working With Islamic Finance http://www.investopedia. com/articles/07/islamic_investing.asp?header_alt=c Source: Ernst & Young 8. Meezanbank.com. Meezan Bank https://www.meezanbank.com/history. aspx July - September 2017 The Pakistan Accountant 37