Ase Study: Islamic Banking and the Financial Crisis

Islamic financial services provision has existed in the UK for a number of years, including FSA-authorised and Shariah compliant, retail and investment banks. Globally and in contrast to the financial crisis of 2007-08, the industry is thought to be growing at around 10% each year and worth between US$200-500. For this second assignment, you are tasked with writing a case study on the performance of the Islamic banking sector between 2003-12, updating readers on the most recent developments. This is a unique period which ought to make for an appreciation of events both before and after the financial crisis, an opportunity to compare conventional and non-conventional banking markets and produce a comparative understanding of practices in these very different sectors.

To help give you some context to the case study, it is suggested that you consider Islamic banking and the financial crisis from a European perspective, with an added emphasis on the UK. You may consider any number of Islamic and non-Islamic financial instruments, though retail products and investments such as mortgages and bonds should be given careful consideration.

contents:
1. Introduction
2. Background and Key Concepts of Islamic Banking
3. Islamic Banking in the UK and Globally
a. Size of the Islamic Banking Market in Europe and the UK
b. Growth of the Industry
4. Regulation of Islamic Banking
a. Financial Services and Markets Act 2000
b. a?No obstacles, no special favoursa?
5. Examples of Islamic Financial Instruments
a. Murabaha, Ijara, etc.
6. Implications of Islamic Financial Instruments
a. Benefits of Financial Innovation

Bibliography

Appendix

Referencing Requirements:
References have to be from books and journals and case studies