THE EMERGENCE OF ISLAMIC BANKING: Development, Trends, and Challenges

Abstract

Islamic banks have emerged over the last four decades and witnessed remarkable growth in terms of numbers of new Islamic banks being established all over the world. This expansion is paralleled to an equal high growth in Islamic banking education. There exist various colleges and universities offering courses related to Islamic banking and finance. This paper maps the growth and development of Islamic banking industry from 1963 to the 21 st century both in terms of education, trend and challenges. This study could provide a systematic documentation of the rapid growth in the Islamic banking industry and able to attract new participants. However, the rapid development in the global financial markets poses various challenges to Islamic banking in the present era. These issues and challenges need to be addressed very carefully in order to sustain the rapid growth it experienced before. This paper highlights the various developments, issues and challenges confrontingthe Islamic banking to offer recommendations for further improvement.