This text explains how Islamic banking works and what it offers as an alternative model of financial intermediation. Important questions addressed include: Why Islamic banking started and where it is going; who the main players are at present and whom it will attract in future; what its strengths and weaknesses are; whether Islamic banks will survive in highly competitive and globalized financial markets; what their prospects and potentials are; and how the relative performance and efficiency of Islamic banks compares to conventional banks?
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