Paper Titles in Periodical
International Letters of Social and Humanistic Sciences
Volume 55


Subscribe to our Newsletter and get informed about new publication regulary and special discounts for subscribers!

ILSHS > Volume 55 > Contemporary Challenges Confronting Islamic...
< Back to Volume

Contemporary Challenges Confronting Islamic Banking & Finance

This article has been retracted.

Is referred to by “Retraction Notice: M. A. Khan, M. W. Shehzad, M. A. Khan, Contemporary Challenges Confronting Islamic Banking & Finance, International Letters of Social and Humanistic Sciences, Vol. 55, pp. 86-94, 2015”, International Letters of Social and Humanistic Sciences. Vol. 76, pp. 49, 2017.

After checking the article [1] by the iThenticate software we became aware that a substantial part (more than 50%) of the main text of [1] had been copied from multiple other publications. Although the authors stated that it happened unintentionally, we believe that plagiarism in all its forms is unacceptable. Since the significant amount of the wording had been taken from previously published articles, the article [1] was subject to retraction for the purpose of alerting readers to the case of plagiarism.

Editors would like to apologize for the late detection of the problem to the readers of the Journal. We tend to publish original scientific manuscripts only.

We sincerely appreciate the efforts of anyone who brings matters of plagiarism to our attention. All authors of [1] were acknowledged about the decision to retract the article [1] and agreed to the retraction. Thus, the paper has been declared retracted and marked accordingly.

Full Text PDF


The philosophy of Islamic economics is “brining economics in consonance with Shariah”, guiding Islamic banking and finance to abolish interest from operations, has reported a monumental growth, envisaged the most lucrative and unsusceptible segment of the economy. Islamic finance is undoubtedly flourishing worldwide entails trajectory development but at other front it encounters a number of impediments in development since its inception. The emphasis of this study is to encapsulate in tabular form, the contemporary problems and challenges Islamic finance has encountered during the span of last 28-years from 1988 to 2015. The austere Shariah compliance; regulatory and prudential challenges; misconception among western society about Islamic banking philosophy; unavailability of money and capital market for scant Islamic financial instruments; piercing competition; privation of Islamic banking and finance awareness; absence of uniform reporting standards; complexities of regulatory and supervisory issues; lack of central supervisory body, governance and dearth of consensus among Shariah scholars been the precarious challenges among many others. A unified central regulatory and supervisory mechanism required in converging sprinkled Islamic finance practices and to foster a synchronized and standardized regulatory framework consensus need to be developed among all Shariah scholars


International Letters of Social and Humanistic Sciences (Volume 55)
M. A. Khan et al., "Contemporary Challenges Confronting Islamic Banking & Finance", International Letters of Social and Humanistic Sciences, Vol. 55, pp. 86-94, 2015
Online since:
Jul 2015

State bank of Pakistan, Islamic banking bulletin (March, 2013), retrieved from.

Ariff, M. (1988). Islamic banking. Asian-Pacific Economic Literature, 2(2), 48-64. http: /www. sbp. org. pk/ibd/bulletin/2013/IBB-March-2013. pdf.

Siddiqi, M. N. (1989). Islamizing economics. Toward Islamization of disciplines, 253-261.

Pervez, I. A. (1990). Islamic finance. Arab Law Quarterly, 5(4), 259-281.

Khan, A. M. (1991). The future of Islamic economics. Futures, 23(3), 248-261.

Ghazali, A. (Ed. ). (1992). An Introduction to Islamic Finance. Quill Publishers.

Kuran, T. (1993). Islam and the Economic Challenge. Islamic Economics Series - 17.

Siddiqui, S. H. (1994). Islamic banking: genesis & rationale, evaluation & review, prospects & challenges. Royal Book Company.

BinSayeed, K. (1995). Western dominance and political Islam: Challenge and response. SUNY Press.

Al-Omar, F., Abdel-Haq, M., Fuad al-ʿUmar, & ʿAbd al-Ḥaqq, M. (1996). Islamic banking: Theory, practice and challenges.

Gerrard, P., & Cunningham, J. B. (1997). Islamic banking: a study in Singapore. International Journal of Bank Marketing, 15(6), 204-216.

Iqbal, M., Aḥmad, A., & Khan, T. (1998). Challenges facing Islamic banking. Islamic Development Bank, Islamic Research and Training Institute.

Marston, D., Shabsigh, G., & Sundararajan, V. (1998). Monetary Operations and Government Debt Management Under Islamic Banking (EPub). International Monetary Fund.

Sarker, M. A. A. (1999). Islamic banking in Bangladesh: performance, problems, and prospects. International Journal of Islamic Financial Services, 1(3), 15-36.

Al-Raji, A. S. (1999). Islamic BanksTechnology and Global Challenges and Opportunities. Center for Middle Eastern Studies, Harvard University, 177-178.

Wilson, R. (1999). Challenges and opportunities for Islamic banking and finance in the West: the United Kingdom experience. Thunderbird International Business Review, 41(4-5), 421-444.

Sarkar, A. A. (2000). Regulation of Islamic banking in Bangladesh: role of Bangladesh bank. International Journal of Islamic Financial Services, 2(1), 67.

Zaher, T. S., & Hassan, K. (2001). A comparative literature survey of Islamic finance and banking. Financial Markets, Institutions & Instruments, 10 (4), 155-199.

Sundararajan, V., & Errico, L. (2002). Islamic financial institutions and products in the global financial system: key issues in risk management and challenges ahead (No. 20022192). International Monetary Fund. RETRACTED.

Grais, W., & Kantur, Z. (2003). The changing financial landscape: opportunities and challenges for the Middle East and North Africa. World Bank Policy Research Working Paper, (3050).

Nasim, F. (2003). Prospects Of Islamic Banking: Legal and other Challenges and Issues.

Karbhari, Y., Naser, K., & Shahin, Z. (2004). Problems and challenges facing the Islamic banking system in the west: The case of the UK. Thunderbird International Business Review, 46(5), 521-543.

Ali, (2005). Islamic Banking. Journal of Islamic Banking and finance, 4(1), 31-56.

Siddiqi, M. N. (2006). Islamic banking and Finance in Theory and Practice: A Survey of the State of the Art. Islamic Economic Studies, 13(2), 1-48.

Briault, C. (2007). London: centre of Islamic Finance?. Financial Service Authority.

Garas, S. N., & Manama, B. A. (2007). Internationalization of Islamic Financial Institutions: Challenges and Paths to Solution. Thunderbird International Business Review, 49(2), 225-249.

Hesse, H., Jobst, A., & Solé, J. (2008). Trends and challenges in Islamic finance. World Economics, 9(2), 175-193.

Seibel, H. D. (2008). Islamic microfinance in Indonesia: the challenge of institutional diversity, regulation, and supervision. SOJOURN: Journal of Social Issues in Southeast Asia, 23(1), 86-103.

SunGard. (2008). Islamic Banking and Finance. Growth and Challenges Ahead. Downloaded from www. sungard. com/embit on 20/07/(2013).

Shaukat, M., Zafarullah, M., & Wajid, R. A. (2009).

Samat, D. S. Z. (2009). Islamic Banking: The Lessons and Challenges Strictly Private & Confidential In Malaysia & Beyond. Downloaded from www. bankislam. com. my/en/documents/shariah/presentationtofstep-dsz. pdf.

Ahmed, A. M. E. T. (2010). Islamic Banking: How to Manage Risk and Improve Profitability (Vol. 640). John Wiley & Sons.

Khan, M. F., & Porzio, M. (Eds. ). (2010). Islamic Banking and Finance in the European Union: A Challenge. Edward Elgar Publishing.

Sadaqat, S., Ali, K., & Farhan M. (2011). Liquidity Risk Management: A comparative study between Conventional and Islamic Banks of Pakistan. Interdisciplinary Journal of Research in Business, 1(1), 35-44.

Hanif, H. (2011). Differences and Similarities in Islamic and Conventional Banking. International Journal of Business and Social Science, 2(2), 166-175.

Ernst & Young, (2012). World Islamic Banking Competitiveness Report 2013 Growing Beyond DNA of Successful Transformation, retrieved from http: /www. mifc. com/index. php?ch=151&pg=735&ac=818&bb=file1.

Shah, F. S., Raza, M. W., & Khurshid, M. R. (2012). Islamic Banking Controversies and Challenges. Interdisciplinary Journal of Contemporary Research in Business, 3(10), 10181026. RETRACTED.

Ullah, M. M., & Chowdhury, M. S. A. (2013). Prospects of Islamic Banking in Bangladesh. Proceedings of 3rd Asia-Pacific Business Research Conference, Kuala Lumpur, Malaysia.

Aris, N. A., Othman, R., Azli, R. M., Sahri, M., Razak, D. A., & Rahman, Z. A. (2013). Islamic Banking Products: Regulations, Issues and Challenges. Journal of Applied Business Research (JABR), 29(4), 1145-1156.

Ismal, R. (2013). Islamic Banking in Indonesia: New Perspectives on Monetary and Financial Issues. Wiley. com.

Karim, R. A. A., & Archer, S. (2013). Islamic Finance: The New Regulatory Challenge. Wiley.

Seyed-Javadin, S. R., Raei, R., Safari, M., & Iravani, M. J. (2014).

Yunusa, M., & Nordin, N. B. (2015). Religious Challenges of Islamic Banking in Nigeria. International Journal of Academic Research in Business and Social Sciences, 5(4), 46-66. RETRACTED.

Show More Hide