Discuss critically distinctions between Islamic finance regulation and Essay

Discuss critically distinctions between Islamic finance rule and schematic financing of commercial credit - Essay ExampleIslamic financing was first introduced in the UK in 1990 and has since developed to such an extent that the UK hosts the largest sh be of Islamic assets (valued at US$18 billion) among all Hesperian countries and is eight worldwide.6 As of 2008, there were five stand-alone Islamic banks in the UK and more than 20 courtly banks offering Islamic products.7 This paper provides a critical analysis of the distinctions between Islamic finance regulation and conventional financing of commercial credit.The modernized form of Islamic finance began in Egypt during 1963 when the Mitt Ghamr savings system was introduced as a social banking initiative.8 By 1975 the first commercial Islamic banks were constituted Islamic Development Bank and the Dubai Islamic Bank. The Islamic banking sector grew at a steady mistreat and by the 1990s there was a growing demand for Islamic monetary products in investments and loans. In more recent years, the growth in demand and supply of Islamic financial products has been more expansive. amongst 2006 and 2008, Islamic financial assets experienced a growth rate of 30%. As a result, sharia law compliant banking products open been described as the worlds fastest growing financial sector.9 There are at least 614 registered Islamic finance institutions in 47 countries with Islamic assets change magnitude from US$cl billion during the 1990s to approximately US$700 billion by 2007.10The growth and expansion of Islamic banking and financial products have been impressive. Holden reports that over the last thirty years or so, Muslims all over the world have demonstrated a propensity for withdrawing billions of dollars from conventional banking systems and transferring them to Islamic banking and financial systems. In addition, conventional banks have shown an increasing willingness to offer Islamic banking and financial p roducts and services.11Islamic banking is defined as a system of