Conventional bank and islamic banking as institutions: Similarities and differences

Wan Hakimah Wan Ibrahim, Abd. Ghafar Ismail

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Purpose – The aim of this paper is to discuss the similarities and differences of both conventional and Islamic financial institutions from various institutional perspectives. Design/methodology/approach – This conceptual paper describes the insights held by the financial institution theory which is discussed from the perspectives of the economics of the financial institution, legal environment, the political aspect of an institution, the philosophical underpinning, the components of institution and also the ethical role of institution. Then, this paper will proceed to justify the similarities and differences that have been observed between both institutions. Findings – Discussions in this paper will reveal that specifically specific similarity is prevalent on the nature of the supervisory role. The differences between both institutions from the aspects of business organization, economic roles and law of origin have also been found. Research limitations/implications – The similarities and differences that are established on both institutions will affect the structure of the financial contract and the design of financial systems. Originality/value – The paper will contribute a new knowledge specifically on the design of the Islamic financial contract based on Shariah law at the initial phase.

Original languageEnglish
Pages (from-to)272-298
Number of pages27
JournalHumanomics
Volume31
Issue number3
DOIs
Publication statusPublished - 10 Aug 2015

Fingerprint

Islamic banking
Banking
Conventional
Financial contracts
Financial institutions
Economics
Islamic financial institutions
Legal environment
Business organization
Institutional perspective
Design methodology
Financial system
Financial System
Methodology
Originality

Keywords

  • Financial design
  • Institutional environment
  • Islamic financial institution
  • New institutional economics
  • Shariah law

ASJC Scopus subject areas

  • Economics and Econometrics
  • Philosophy

Cite this

Conventional bank and islamic banking as institutions : Similarities and differences. / Ibrahim, Wan Hakimah Wan; Ismail, Abd. Ghafar.

In: Humanomics, Vol. 31, No. 3, 10.08.2015, p. 272-298.

Research output: Contribution to journalArticle

Ibrahim, Wan Hakimah Wan ; Ismail, Abd. Ghafar. / Conventional bank and islamic banking as institutions : Similarities and differences. In: Humanomics. 2015 ; Vol. 31, No. 3. pp. 272-298.
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