This work analyzes whether in recent years Islamic financial developments apply globally, for example to Germany. The author is interested in the reality of Islamic finance and its potential existence in non-Muslim environments? In much of the extant literature, studies consider a theoretical model such as: “The stability of Islamic finance”.
The authors in these studies tend to focus on global Islamic banks. In the present study, the Author wants to examine the situation for a specific non-Muslim country like Germany. The second focus is to find out whether there is a relationship between the number of Muslims in Germany and the need for Islamic financial products. A detailed view of market entry and critical key indicators are analysed. The current laws and their handling by Islamic banks will additionally be examined.
Table of Contents
1 INTRODUCTION
2 OBJECTIVES AND METHODOLOGY
2.1.) PROBLEM IDENTIFICATION AND EXPLANATION
2.2.) Research Questions
2.3.) Methodology
3 SURVEY OF LITERATURE
3.1.) ISLAMIC FINANCE
3.2.) DETAIL INTEREST FREE
3.3.) DETAIL HELAL
3.4.) INTERNAL VIEW OF BANKS
3.5.) EXTERNAL VIEW OF CUSTOMERS
4 RESULTS
5 DISCUSSION
Objectives and Topics
The primary objective of this thesis is to investigate the viability and competitiveness of interest-free banking within non-Muslim environments, specifically focusing on the German market. The study aims to bridge the gap between theoretical Islamic economic models and practical market realities by analyzing the supply side (banking institutions) and the demand side (potential Muslim customers), while contrasting findings with the more developed Islamic finance market in Turkey.
- Analysis of the relationship between Muslim population density and the demand for Islamic financial products.
- Evaluation of "interest-free" and "Helal" operational frameworks within conventional legal systems.
- Examination of internal bank structures and their adaptation to Islamic financial requirements.
- Comparison of Islamic financial practices in Germany versus the Turkish market.
- Identification of decision-relevant indicators characterizing the financial behavior of Muslims in non-Muslim countries.
Excerpt from the Book
2 Objectives and Methodology
Problem identification There are, as in the Christian and Jewish world, many opinion leaders in the Islamic world. The publications display a consensus towards various theoretical objectives in an economic context. In most cases, however, there is little or no evidence base.
These publications display a use of old arguments, each side focused solely on the demand side or the supply side of economics. Real challenges and developments may begin, from the author’s perspective, only by practical, bottom up, analysis. The two essential components of the market were included in this study.
As my "Hoca" (Preacher) once said in his prayer, “It is absolutely important to be honest and pure, but as Muslims we must start with ourselves!” I want to take these words and turn my focus to the world of Muslims, especially to the world of Muslims in so-called non-Muslim countries.
The problem that exists in the literature about facts and figures, for example, will be addressed through the creation of a separate factual basis. The representative set of micro data will allow us to make a statistical interference, due to my work. This data is significant for a large number of people – for example, Muslims in Germany.
The relevant questionnaire was distributed in an electronic form, with both residential and business customers involved. This result of the demand side has been reflected in workshops with banks.
Summary of Chapters
1 INTRODUCTION: This chapter outlines the global applicability of Islamic financial developments and sets the research focus on the German market's potential for Islamic banking products.
2 OBJECTIVES AND METHODOLOGY: This section defines the main research questions, identifies the problem of lacking empirical evidence in current literature, and explains the dual approach of analyzing supply and demand through surveys and comparative institutional analysis.
3 SURVEY OF LITERATURE: This chapter provides a historical and theoretical overview of Islamic economic thought, the concepts of "interest-free" and "Helal" finance, and relevant banking viewpoints.
4 RESULTS: This section presents findings from the empirical survey and analyzes the operational differences and market integration challenges for Islamic banking in Germany versus conventional models.
5 DISCUSSION: This chapter synthesizes the research findings, reflecting on the necessity of "interest-free" models and the potential for Islamic finance to offer healthy alternatives in debt-overloaded markets.
Keywords
Islamic Finance, Interest-free banking, Helal, Germany, Turkey, Muslim customers, Bank competitiveness, Financial products, Economic stability, Profit and loss sharing, Sharia, Conventional banking, Market entry, Financial behavior, Empirical research.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on assessing the sustainability and competitiveness of Islamic banking, specifically operating under interest-free principles, within non-Muslim environments like Germany.
What are the primary themes covered in this thesis?
The study covers the theoretical foundations of Islamic finance, the legal and operational challenges of implementing these models in Germany, consumer demand patterns, and a comparative analysis with the Turkish market.
What is the main research question?
The primary research question asks whether there is a measurable relationship between the size of the Muslim population in a non-Muslim country like Germany and the success of implementing Islamic financial services.
Which methodology is employed in this study?
The author uses a two-step empirical approach: a standardized questionnaire to collect demand-side data from customers, and a comparative analysis of institutional supply-side characteristics using databases like BankScope.
What does the main body of the work address?
The main body examines the historical context of Islamic economic thought, analyzes internal bank operations versus external customer needs, and evaluates the regulatory landscape for Islamic finance in Europe.
Which keywords define the scope of the work?
Key terms include Islamic Finance, Interest-free banking, Helal, Germany, Turkey, financial stability, and Profit and Loss Sharing (PLS).
How does the author define the "internal view" of banks?
The internal view refers to how banks structure their operations, manage risk, and adapt their product portfolios to satisfy both regional legal requirements and Islamic Sharia principles.
What is the author's stance on the German market?
The author identifies a significant gap in the German market due to regulatory restrictions and a lack of information, suggesting that there is untapped potential for Islamic banking if regulations were better harmonized on a European level.
How is the "external view" of customers analyzed?
The external view is analyzed by applying the Life Cycle model, which assesses how the financial behaviors and saving motivations of Muslims in Germany compare to those of the conventional population.
- Arbeit zitieren
- Mehmet Cosgun (Autor:in), 2014, Is an "interestFree" Bank sustainable and competitive?, München, GRIN Verlag, https://www.hausarbeiten.de/document/279132
