Explores the theoretical and practical features, recent developments and future prospects of interest-free banking, illustrated by a detailed analysis of the past twenty-five years of the interest-free banking movement in Pakistan (1980-2005). It helps the reader to understand the model underpinning interest-free banking, based on principles of free market mechanism, efficiency, ethical investment and socio-economic justice. And it assesses the practical success of interest-free banking at individual Islamic banks and at state level, as in the case of Pakistan.
Developments in Islamic Banking presents Islamic banking as a discipline promising ethical, competitive and diversified tools and systems in global finance. The book aims to educate Western market players about the Islamic banking system in friendly and familiar language, so as to bridge the gap between conventional and Islamic banking disciplines. It covers Islamic banking's ethico-religious paradigm, theory and practice, unprecedented developments, achievements, pitfalls and future prospects, and the growth of its infrastructures and supporting institutions in recent years. It provides a comprehensive and longitudinal view, analysing the institutional, financial, judicial and political developments in Pakistan during 1980-2007 for restructuring its economy and financial sector on Islamic lines. Core findings and lessons are provided for the future implementation of the Islamic banking system in Pakistan and elsewhere.