Process of Internationalization in Islamic Banking: The Case of Serbia
Islamic banks are financial institutions operating in accordance with religious Islamic law (Sharia). Although it is familiar as non interest banking, because the interest is forbidden, Islamic banking represents a complete set of moral and ethical activities that must be taken into account when...
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doaj-9a30575e088d4b329dc534ef71b7e5b52020-11-25T00:03:00ZengInstitute of Economic SciencesEconomic Analysis1821-25732560-39492017-12-01503/46674Process of Internationalization in Islamic Banking: The Case of SerbiaAida Hanić0Institute of Economic Sciences, Belgrade, SerbiaIslamic banks are financial institutions operating in accordance with religious Islamic law (Sharia). Although it is familiar as non interest banking, because the interest is forbidden, Islamic banking represents a complete set of moral and ethical activities that must be taken into account when making investment decisions and financing business activities. Share of Islamic banking in Islamic finance is around 80% with the value of approximately $ 1.57 trillion by the end of 2015 (IFSI Stability Report 2016). Islamic banking in Western Balkan is present only in Bosnia and Herzegovina (B&H) that has one Islamic bank, Bosna Bank International (BBI) established in 2000. Serbia, as a country that has attracted many Arab investors, doesn’t have any Islamic bank operating in the country. The aim of this research is to explore is there a public interest in Islamic banking, especially among the commercial banks in Serbia and are there possibilities for development of Islamic banking in this country. To explore these two main questions, author conducted a research by using a questionnaire among the chairmen and members of the administrative Board of 12 commercial banks in Serbia. The result of the research show that commercial banks in Serbia are not interested in this type of a banking activity. On the other hand they are also not sufficiently familiar with the concept of Islamic banking. The research showed that process of internationalization of Islamic banking is not present in Serbia.http://www.library.ien.bg.ac.rs/index.php/ea/article/view/544/480Islamic bankinginternationalizationethical identitydevelopment |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Aida Hanić |
spellingShingle |
Aida Hanić Process of Internationalization in Islamic Banking: The Case of Serbia Economic Analysis Islamic banking internationalization ethical identity development |
author_facet |
Aida Hanić |
author_sort |
Aida Hanić |
title |
Process of Internationalization in Islamic Banking: The Case of Serbia |
title_short |
Process of Internationalization in Islamic Banking: The Case of Serbia |
title_full |
Process of Internationalization in Islamic Banking: The Case of Serbia |
title_fullStr |
Process of Internationalization in Islamic Banking: The Case of Serbia |
title_full_unstemmed |
Process of Internationalization in Islamic Banking: The Case of Serbia |
title_sort |
process of internationalization in islamic banking: the case of serbia |
publisher |
Institute of Economic Sciences |
series |
Economic Analysis |
issn |
1821-2573 2560-3949 |
publishDate |
2017-12-01 |
description |
Islamic banks are financial institutions operating in accordance with religious Islamic law (Sharia).
Although it is familiar as non interest banking, because the interest is forbidden, Islamic banking
represents a complete set of moral and ethical activities that must be taken into account when
making investment decisions and financing business activities. Share of Islamic banking in Islamic
finance is around 80% with the value of approximately $ 1.57 trillion by the end of 2015 (IFSI
Stability Report 2016). Islamic banking in Western Balkan is present only in Bosnia and Herzegovina
(B&H) that has one Islamic bank, Bosna Bank International (BBI) established in 2000. Serbia, as a
country that has attracted many Arab investors, doesn’t have any Islamic bank operating in the
country. The aim of this research is to explore is there a public interest in Islamic banking, especially
among the commercial banks in Serbia and are there possibilities for development of Islamic banking
in this country. To explore these two main questions, author conducted a research by using a
questionnaire among the chairmen and members of the administrative Board of 12 commercial
banks in Serbia. The result of the research show that commercial banks in Serbia are not interested
in this type of a banking activity. On the other hand they are also not sufficiently familiar with the
concept of Islamic banking. The research showed that process of internationalization of Islamic
banking is not present in Serbia. |
topic |
Islamic banking internationalization ethical identity development |
url |
http://www.library.ien.bg.ac.rs/index.php/ea/article/view/544/480 |
work_keys_str_mv |
AT aidahanic processofinternationalizationinislamicbankingthecaseofserbia |
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1725435521540292608 |