Study On The Growth Of Islamic Banking Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1636 Downloads: 2 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? After its first introduction on experimental basis in a small town of Egypt in 1963, many Islamic Banks, both with letter and spirit, were established in the Middle Eastern and Asian regions. The growth of Islamic banking has been increasing ever since, not only in terms of number of countries it is operating in but also in term of areas of finance it has ventured. In three decades, Islamic banks have grown in number as well as in size world wide and are being practiced on even more intensive scale. Don’t waste time! Our writers will create an original "Study On The Growth Of Islamic Banking Finance Essay" essay for you Create order Some countries like Sudan and Iran, have converted their entire banking system to Islamic banking. In other countries where conventional banking is still dominating the Islamic Banking is operating alongside. Today, Islamic banks are operating in more than sixty countries Islamic Banking and Finance is growing at between 10%-15% per annum and is boasting global assets in excess of $1Trillion. A recent survey indicated that there are more than 160 Islamic financial institutions existing world wide. Gradual and steady spread of the Islamic banks over time over the world is a lucid manifestation of success and the symbolic growth rate is the hallmark of this emerging market. Being fastest growing segment of the credit market in Muslim countries, market share of Islamic banks in Muslim countries has risen from 2% in the late 1970s to about 15 percent today (Yousaf 2000). Islamic banking is getting popularity, warm welcome, and appreciation also by non-Muslims in Muslim and non-Muslim countries. According to although, most of the Islamic banks are within Middle Eastern and/or Emerging countries, many universal banks in developed countries have started to spigot huge demand of Islamic financial products. This also confirms that Islamic banking is as viable and efficient as the conventional banking is. Where the financial liberalization and deregulation have created new challenges and new realities for Islamic banks, the globalization effect has also put these institutions in Cutthroat competition with traditional financial institutions in well developed financial markets. It has become indispensable for Islamic banks to be innovative in designing Islamically acceptable instruments to grapple with the unremitting innovations in financial markets and to compete in local and global deposit markets. Moreover, for fund mobilization and utilization, Islamic banks must seek investment opportunities and avenues that offer competitive rates of return at acceptable degrees of risk. In order to maximize the value of the bank, management of the bank should carefully consider interactions between different performance measures. Islamic Banking As defined, Islamic Banks aim to provide banking services that are in accordance with Islamic Principles and Shariah within the complete Islamic financial system, which in turn aims to bring the most benefit to society in terms of equity and prosperity, rather than focusing solely on creating maximum returns on capital. Islamic banks aim to achieve the socio-economic goals of the Islamic religion which are reaching full-employment, a high rate of economic growth, equitable distribution of wealth and income, socioeconomic justice, smooth mobilization of investments and savings while ensuring a fair return for all parties and finally emphasize the stability of money value. A crucial factor inhibiting Islamic banking growth is the lack of financial performance measures that are adapted to Islamic financial institutions and their special practices. This has led to the slow emergence of Islamic banks on the global markets, since they are unable to fairly and clearly represent their fina ncial position. For this reason it becomes important to investigate and identify one of the available performance measurement tools to find a powerful tool for measuring the performance of conventional banks, and then attempt to adapt and modify such a tool to be used for Islamic banks to overcome one of the critical challenges of Islamic banking. Measuring the performance of Islamic banks is necessary to be able to detect problems and settle concerns about the safety and soundness of investments for depositors, managers, and regulators alike. It is highly important for managers to determine the financial position of their institution compared to their competition or industry benchmarks, as well as evaluating how effective previously taken decisions affected the bank. Islamic bank performance measurements also help Shariah Supervisory Boards and other regulators to understand the performance of banks and to ensure only transparent and clear information is available and used. Finally it helps investors to identify chances and investment opportunity and ensure that the best decision regarding use of funding is being taken. Historical view of Islamic banking As with all things Islamic, the origination of Islamic finance goes back to the time of Prophet Muhammad (Peace be upon Him). The Quran and the example of Prophet Muhammad (Peace be upon Him) provide direct behavioral guide and represent bedrock of Islamic faith to over one billion Muslims globally. The Prophet Muhammad (Peace be upon Him) happened to be a businessman serving as a trader for Khadija (May Allah bepleased with Her). The Prophetic example was the very epitome of fair-trade. Refraining from usury, ensuring transparency in transactions, and total honesty entitled him Al- Amin (The trustworthy) in pre-Islamic Arabia (Sufyan7). Muslim societies banking movement is limited, such as receiving of deposit, move back to the era of the Prophet Muhammad (Peace be upon Him). At that time people deposited money with the Prophet Muhammad (Peace be upon Him) or with Abu Bakr Sedique (May Allah be pleased with Him), the first Khalif of Islam. In order to keep away from appearance of Islamic fundamentalism which was abhorrence to the political system, first new test with Islamic banking was commence in Egypt face without analytical an Islamic picture. Ahmad El Najjar made pioneering effort and established Banking in based on profit and saving in Egyptian town of in l963. There were nine such banks in the country by 1967. These banks, which are totally free of interest and dealing with trade and also investing the amount in different sector and gain profit share customer and depositors. Islamic banks were act really as investment and saving institution quite different as profitable banks. In the seventies, because of alteration the political environment that take place in many Muslim countries, there was no longer any strong need to establish Islamic financial institutions under cover. Both with letter and spirit, in the Middle East established a number of Islamic banks, e.g., the (1975) Dubai Islamic Bank, (l977) the Faisal Islamic Bank of Egypt ,(l977) the F aisal Islamic Bank of Sudan, and the(l979)Bahrain Islamic Bank to mention a few. A number of banks were also established in the Asia-Pacific region in response to these winds of change, e.g., established in l973 Philippine Amanah Bank (PAB) . Its interest-based operations continue to coexist with the Islamic method of money.PAB operates two windows for deposit transactions, i.e., conventional and Islamic. Malaysia Islamic banking introduce in l983, but not without experience. Muslim Pilgrims Savings Corporation (MPSC) was the first (non-bank) Islamic financial .In 1969, which is now popularly known as the Tabung Haji. The success of the Tabung Haji also provided the main thrust for establishing Bank Islam Malaysia Berhad (BIMB). Difference between Islamic Banks and conventional Banks Like conventional bank, Islamic bank is an intermediary and trustee of money of other people but the difference is that it shares profit and loss with its depositors. This difference that introduces the element of mutuality in Islamic banking makes its depositors as customers with some ownership of right in it. Islamic banking and conventional banking differs in that while the conventional banking follows conventional interest-based principle, the Islamic banking is based on interest free principle and principle of Profit-and-Loss (PLS) sharing in performing their businesses as intermediaries. Rationale behind prohibition of interest and the importance of PLS in Islamic banking has been discussed in many Islamic economics studies8. Moreover, Islamic PLS principle creates the relationship of financial trust and partnership between borrower, lender, and intermediary (Yudistira 2003). Islamic finance is a financial system with the aim to fulfill the teaching of Holy Quran as opposed t o reaping maximum return on financial assets. Conformity to norms of Islamic ethics is the main concern of Islamic financial system. These norms of Islamic ethics as enunciated by the Shariah govern all transactions in an Islamic financial system. At a fundamental level, an Islamic financial system can be described as a Fair and a Free system where Fairness is the primary objective; however, it also circumscribes the freedom of the participants in the system. Though, in Islam participants are free to enter into transactions but this basic norm of freedom doest not imply rampant freedom to contract and is constrained by other norms, such as, the prohibition of Riba and Gharar. Difference between the two banking systems also lies in terms of governance structure. Islamic banks must obey a different set of rules those of the Holy Quran and meet up the hope of Muslim society by given that Islamically-suitable funding method. Islamic banks are similar to those of non-Islamic banks in t hat both offer similar (financial) services and play a pivotal role in the economic development of their societies. But they are different in that Islamic banks, unlike non-Islamic banks, are bound to follow Islamic Shariah in their operations. For instance, according to Islamic Shariah exploitative contracts based on Riba (usury or interest) or unfair contracts that involve risk or speculation are unforeseeable. Islamic banks compared with non-Islamic banks seek a just and equitable distribution of resources. Islamic bank is based on Islamic Faith and its operations must be within the boundaries of Islamic Law or the Shariah. There are four rules that govern investment behavior (Suleiman 2001): the absence of interest-based (RIBA) transactions; the avoidance of economic activities involving speculation (GHARAR); the introduction of an Islamic tax, ZAKAT; the warning of the services and creation of merchandise which disagree with the value example of Islam (HARAM).

The Uneasily Defined Organizational Structure of Apple Essay

The Uneasily Defined Organizational Structure of Apple Anna Windust MGT/230 January 20, 2013 Christi Monk The Uneasily Defined Organizational Structure of Apple Organizational structures have been used for centuries to help people within organizations to understand who holds authoritative roles and how it is ordered, who has certain responsibilities and how they are organized and executed, and how communication flows between the tiers of management (â€Å"BusinessDictionary,† 2013). There are many types of organizational structures; the common ones are functional, divisional, and matrix organizational structures. Apple is a company in which the organizational structure is somewhat of a mystery; therefore, it is a very interesting†¦show more content†¦It was rare that any employee would not have a clear understanding of what Job’s direction was going and what his objectives of any given week were. There was such a personal connection to the CEO that employees at all levels generally believed they were an instrumental and working part of the organization. Jobs wanted the very best person in each specific job; therefore, employees were held accountable for their own positions. Lashinsky (2011) noted the odd culture and organizational structure of Apple: To Apples legion of admirers, the company is like a tech version of Wonkas factory, an enigmatic but enchanted place that produces wonderful items they cant get enough of. That characterization is true, but Apple also is a brutal and unforgiving place, where accountability is strictly enforced, decisions are swift, and communication is articulated clearly from the top. (para. 3) The organizational structure at Apple would make most people uneasy, yet surprisingly the employee turn-over is quite low. Employees have a good understanding of what the company wants to achieve, believes in the products that they are creating, and wants the company to succeed. These beliefs have helped employees to meet the organizational goals of Apple, making it one of the most successful companies in the United States. Apple has a reputation for providing top-quality customer service. Employees are required to have a

Day When Every Thing Went Wrong Free Essays

It was a fine Saturday morning. I got up in haste. Quickly I got ready for my school. We will write a custom essay sample on Day When Every Thing Went Wrong or any similar topic only for you Order Now It was 7. 05 am and my mother shouted at me for not taking my breakfast properly. However I ran to my bus stop and to my utter misfortune the bus had already left. I was literally breathless. I couldn’t afford to go a single minute late in my maths examination. Again I ran to my house and luckily my brother was there to take me to my school. I thanked God for that and bidding goodbye to my mother we both went to school. On the way we saw huge mass gathering for there took place an accident. My brother stopped there for a while. I actually didn’t want him to go and inspect the matter. Rather I said him to take another route. He managed to take me by another way. Suddenly my eye fell on my watch and I saw there were fifteen more minutes for our examination to start. I just closed my eyes and prayed that I would be able to attend my examination properly. My brother asked me not to worry and assured that we would reach school in just five minutes. He raised the pin of the speedometer to 80 . I took a deep breath of relaxation as I could see my school in front of my eyes. Then suddenly two dogs rushed to the middle of the road fighting strenuously. My brother failed to control the speed and ultimately one of the dogs came between the two wheels of our bike. Our bike got hashed on the wall. My head got banged on a stone. But still then I was uttering â€Å"my examination, my examination!! †My brother was bleeding profusely. But he managed to take a lift from a van. I got admitted in the Hospital and had facial paralysis for some time. Seriously if I had to remember the worst day of my life then it would be none other than 4th January 2010. I felt so bad that I couldn’t even express my feelings in words. The whole year I worked so hard and at the end I got promotion to the next class on the basis of a medical certificate. But I thanked God for keeping me and my brother safe. How to cite Day When Every Thing Went Wrong, Papers

Millennials At Reshaping Workplace Culture -Myassignmenthelp.Com

Question: Discuss About The Millennials At Reshaping Workplace Culture? Answer: Introduction Millennials are also known as Generation Y and they are following Generation X. Millennials are the young generation who reached their adulthood at the turn of 21st Century (De Vaney 2015). Millennials are marked by the increased utilisation of communication technologies, media and they are familiar with digital technologies. Post-war of Baby Boomers, Millennials were brought up in a liberal way and they are civic-minded. In this study, the working styles of Millennials are described with the theoretical approach with taking help of secondary data sources. Regardless of the age of Millennials, the people are emotionally committed to the workplace and they try to find the works that suit them. Problem statement Millennials in the workplace are young, smart, brash and they are savvy with technologies and latest gadgets. Management in the workplace understand the generation gap and they deploy the employees in such a way where bonding among the employees must be good. There can be a cultural clash between baby boomers and Millennials as their process of thinking and working style may not match. Millennials are the pioneer of technologies and open-minded thinking, baby boomers and Gen-X think that Generation Y brings attitude at the workplace (Smith and Nichols 2015). Millennials are goal oriented, they have expectations, they do not afraid of workplace changes and they find creative challenges at the workplace. Millennials' differ in the application of new age workplace culture of gig economy, work-life balance, flat corporate culture and social consciousness (Pomarici and Vecchio 2014). In the Australian workplace, 18% of the employees in the workplace are aged after 58 and this projected to reduce by 11% by 2030 (Pwc.com 2018). Millennials mainly bring the workplace culture by bringing the technologies, social media at the workplace, immediate feedback culture and doing knowledge-based jobs. They choose the career paths that are less predictable and more dynamic Performance of Millennials at workplace Millennials are born after 1982 and their thinking process is different than baby boomers. Managers in the workplace try to exploit the Millennials as they have positive outlook and qualities that the managers seek. Within a workplace, team bonding can become weaker if the poor management style is employed. Baby boomers, Gen-X and Millennials need to work together with the cohort. As stated by Pinzaru (2016), the performance of the Millennials is different from Gen-X and Baby Boomers as they are the top employees and organisation's most effective assets. They can use technologies, they are fresh thoughts of the organisation, they believe in work-life balance and they focus on social-entrepreneurship. The performance of the Millennials is an important matter for the employers as they have been entering the workplace in vast numbers and they will shape the workplace for many years to come. Millennials already take 26% of the overall work and it will reach 50% of the global workforce (D eal et al. 2014). Changes brought by millennials at workplace Millennials have brought the concept of loyalty-line as Millennials are loyal towards the employers. In 2010, a statistic showed that Millennials are expected to work between three and five employers in their lifetime. Millennials and Gen-X both have experienced the recession and tough time have provided an urge to compromise in expectation of salary (Choi et al. 2015). They can work in different roles in the workplace and they try to work with the current employer for long-time. In addition, according to DeVaney (2015), Millennials are committed towards personal life as they have brought the concept of developing a work-life balance. Flexible working hours and the idea of gig economy are the concepts brought by them. Millennials are completely fine with working in the multicultural workplace and they are techno-generation. They are moving up to the leader faster and Gen-Y tries to provide the waning significance of corporate responsibility (Pomarici and Vecchio 2014). Millennials lo ve to travel and they are in love with going overseas for a job assignment. Challenges and benefits are given by millennial at workplace Millennials pose challenges to the organisational productivity when the employees glued to the social networking sites or busy with online shopping sites. Understanding the generational gap is very essentials for the managers and recruiters. Millennials leave the employers in short-span of time and thus created alarming concern to the employers. Millennials want flexible working hours and work-from-home facility; therefore, managers face challenges to manage them. Generation Y believe in casual dress at workplace and dress-code is a burden for them (Papavasileiou and Lyons 2015). On the other side, Millennials are spirited with passion and competitive in nature as they have their own traits and set of working styles. Gen Y love challenges and they find a balance with the older generation. They define cross-generational values (Smith and Nichols 2015). They practice flexibility and they can reach leadership within a short-span of time. Summarising relevant subject areas Pinzaru et al. (2016), discussed psychological profile of Millennials and they also found out the differences between other generations and Gen Y in terms of characteristics, personality, values and reactions of stress. This study explores the side of the motivation of the Gen Y through public acknowledgement, recognition and positive feedback from the management. Jennifer et al. (2010), did the empirical research on the behaviour of Gen Y in the workplace and they found that behaviour of the Millennials is contradictory. This study focused on long-term health outcomes, work attitudes and personal factors in the workplace. Generational differences and similarities are also researched. Thompson and Gregory (2012), stated about common stereotypes at the workplace of the employees in the context of politics, education social and economical. The authors opined that management style must help the Millennials to bring the best from them. Millennials ways of working are different from the previous generations. Hershatter (2010), illustrated and illuminated characteristics of generation Y. In recent time, organisations have been facing the issue of a new generation which is entering in large numbers as their characteristics are completely different. Gen Y has a relationship with technologies and it highlights the best practices of the organisation. Kowske (2010), explained that generational differences are an important factor in the workplace by showing the work attitudes, job security, turnover issues. Millennials' attitudes in work differ from the previous generations; however, effect sizes are depended on the work attitudes. Gen Y believes in mainly job satisfaction and benefits provided by employers. Kultalahti et al. (2014), discussed perception of the Gen Y regarding the motivation factors at the workplace. This study summarised the intrinsic and extrinsic motivation at the workplace; it talked about the many dichotomies of negative and positive factors of motivation. Paulin et al. (2014), discussed non-profit organisations and its association with sustainable involvement with the millennial generation. Millennials always support the social causes and they get autonomous motivation. Christina and Dimitriou (2015) suggested about American people and their characteristics and traits. This study compares the Millennials with the older generation and Millennials' attitudes are described with a relationship with colleagues and opportunities for promotion. Conclusion The business scenario has changed drastically with time and workforce has been going through the change. The concept of working culture in the workplace is becoming more flexible and employees are needed to have more EQ and less IQ. Millennials are used to with the technologies and hand-held devices that they use in their life. Millennials want to have their own business and digital technologies provide a better opportunity for creativity and entrepreneurship. In workplace culture, they bring the flexibility of working hours, gig economy and work-life balance. In addition, Millennials believe in fast-paced life and they are dynamic. However, their relationship with the previous generations is blurred as Gen Y is less optimistic. In career and work life, for Gen Y, money is not everything as an opportunity in career progression takes the highest value. Reference List Choi, J.W., Lee, J.H. and Kim, K.Y., 2015. Exploring Millennial generation behaviour of gamification contents converging with ICT and sharing economy: Hierarchical clustering analysis. In Computer Science and Its Applications(pp. 789-794). Springer, Berlin, Heidelberg. The deal, J.J., Altman, D.G. and Rogelberg, S.G., 2014. Millennials at work: What we know and what we need to do (if anything). Journal of Business and Psychology,25(2), pp.191-199. Deeken, J., Webb, P.L. and Taffurelli, V., 2008. We are all winners: training silents to Millennials to work as a team.The Serials Librarian,54(3-4), pp.211-216. DeVaney, S. A. 2015. Understanding the millennial generation.Journal of Financial Service Professionals,69(6), pp.11-14. Dimitriou, C.K. and Blum, S.C., 2015. An exploratory study of Greek Millennials in the hotel industry: How do they compare to other generations?.International Journal of Global Business,8(1), pp.34-56 Felix, D. 2013. The composition of a Successful Management Team: How Much and What Kind of Experience Makes a Difference? The Journal of Private Equity, Vol.1 (1), pp.33-36. Hurwitz, M and Hurwitz, D, 2013. Personal, Team, and Organizational Development. In Leadership is Half the Story: A Fresh Look at Followership, Leadership, and Collaboration. University of Toronto Press, Vol. 10(4), pp.23-78. Kowske, B.J., Rasch, R. and Wiley, J., 2010. Millennials(lack of) attitude problem: An empirical examination of generational effects on work attitudes.Journal of Business and Psychology,25(2), pp.265-279. Kultalahti, S. and Liisa Viitala, R., 2014. Sufficient challenges and a weekend aheadGeneration Y describing motivation at work.Journal of Organizational Change Management,27(4), pp.569-582. Papavasileiou, E.F. and Lyons, S.T., 2015. A comparative analysis of the work values of Greece's Millennialgeneration.The International Journal of Human Resource Management,26(17), pp.2166-2186. Paulin, M., J. Ferguson, R., Jost, N. and Fallu, J.M., 2014. Motivating Millennials to engage in charitable causes through social media. Journal of Service Management,25(3), pp.334-348. Pnzaru, F. 2016. Millennials at work. Management Dynamics in the Knowledge Economy, 4(2), pp.173-192. Pomarici, E. and Vecchio, R., 2014. Millennial generation attitudes to sustainable wine: an exploratory study on Italian consumers.Journal of Cleaner Production,66, pp.537-545. Pwc.com. (2018). Millennials at the workplace. Available at: https://www.pwc.com/m1/en/services/consulting/documents/millennials-at-work.pdf [Accessed 20 Feb. 2018]. Smith, T.J. and Nichols, T., 2015. Understanding the millennial generation.The Journal of Business Diversity,15(1), p.39. Thompson, C. and Gregory, J.B., 2012. Managing Millennials: A framework for improving attraction, motivation, and retention.The Psychologist-Manager Journal,15(4), p.237.