Islamic investment modes, Scopes and challenges of Shariah Finance

Abstract

This report is written as a part of completion of the BBA program. This paper aims to scrutinize and provide a brief idea about Islamic investment procedures and the challenges and scopes of the Islamic/ Shariah based banking faces from both national and global perspective. One of the objectives of the paper is to address the differences between conventional banking and Islamic banking, focusing mainly on the current status and future potential of Islamic finance and banking, comparing Bangladesh along with other Muslim majority counties, thriving in Islamic finance. This interim report includes the financial performance of EXIM banks, depicting the overall performance of EXIM bank as an Islamic bank. Exim Bank was incorporated as a public limited company on 2nd June, 1999 under the company Act of 1991. It started it operations from 3rd August, 1999 with the name “Bengal Export Import Bank Limited”, which was later change to “Export Import Bank of Bangladesh Limited”. From July 2004, with the consent of the central bank, EXIM Bank migrated to shariah based Banking from conventional banking. The first chapter provides all the relevant information about the internship program. It details about on-site supervisor’s information, duties and responsibilities, shared knowledge gathered during the period, which are briefly described. Besides, it also covers how the on-site responsibilities have benefited me and my contribution to the company. Moreover, the difficulties and problems during the program, followed by some recommendations. The second chapter focuses on organizational aspect, detailing mission, vision, overview of the company, leadership style, organizational practices and culture of the company, financial performances, organizational hierarchy and so on. Lastly, the Third chapter describes the different Islamic investment modes based on Islamic tenets, and how Islamic finance tends to be different from conventional banking at the core. Based on various secondary sources, I tried to portray the current status of Islamic finance within the banking industry along with the challenges and scopes of Islamic finance form macro and micro perspective. Based on the factors that’s negating the overall efficiency and effectiveness of Islamic financial institutions, I have made some recommendations which might be well fitting to the current challenges.