Islamic and conventional credit cards Assignment

Islamic and conventional credit cards - Assignment mannikinThe increased demand is not only from clients need for differentiated products but also from corporations who want to conceive out all financial dealings in conformity with Sharia laws. The increasing populations of Muslim countries leave alone additionally propel the demand for Sharia - conformable financial services. Many Muslim nations have five-year-old populaces, with more than 60% of the citizens under the age of 21 years, in addition to annual population crop rates of more than 5%. Many conservative pious platitudes currently are also engaging in the Islamic Banking market due to its intrinsic feature of minimal exposure to operational risk. Islamic banking, because of its rigid Sharia submission norms, can help clients decrease the risks related to interest based debt bankrolling that plagued conservative banks especially during the recent financial crisis that hit the mortgage market (Alam (2013).In terms of supply, the main underlying precept 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 developing determination among current conventional banking institutions to transform their processes to become compliant with Sharia laws. With mounting business rivalries in their infrastructure markets, some Islamic banking institutions in the Middle East have begun to multiply globally, with a preliminary direction 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 harvest-time in Islamic banking contend with the concept construction where Sharia specialists examined whether the interest those banks charged was similar to riba. in the lead 1950s, Muslims were not officially engaging the ba nking services so, they did not have any information about bank interest (Shaikh n.d). A