By Imran Hussain Minhas
Abstract
With the achievement of political independence there arose an urge in Muslims to revive their Islamic systems which had become dormant during the colonial period. The conventional banking system, being based on interest which is strictly banned in Islam, was their first target and efforts were set afoot to introduce Islamic banking system to eliminate interest and to ensure its working in conformity with the Islamic Shariah principles. These efforts were crowned with success. The Govt promulgated necessary laws and the Islamic banking came into existence and progressed in phases. Now quite a large number of Islamic banks with assets running into billions are operating and hold out a promise of their bright future.
However there are some problems faced by Islamic banks which may adversely affect their growth. But if the Govt takes initiative and solves them, the Islamic banks are poised to acquire universal popularity and phenomenal development and penetration in all corners of the world.
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