Islamic Financial System: A Brief Introduction from the Literature
Keywords:Islamic finance, Islamic banking, conventional banking, Sharia regulatory board, Islamic capital market, Sukuk
Islamic financial system has achieved a large-scale growth and arriving at a new level of experience in the Muslim countries and around the globe. It helps to provide a basic foundation to establish complex tools that will promote to identify of the best risk management instruments and liquidity of resources. Shariah is the derivation of individual, family and societal norms through the study of revered book Quran and the sayings of the Prophet called Sunnah. Islamic financial system is influenced by many factors like structural reforms and global integration of financial markets. The system is facing many challenges that need to be addressed and resolved relating to Islamic financial markets, financial products, regulatory laws, and bringing awareness in the personal and business world. In this review studies, we have tried to summarize based on existing literature and particularly, elaborate the characteristics, modes, and philosophies of Islamic finance and the banking system. Furthermore, this study also presents a pragmatic judgment of the conduct of the Islamic financial market in the financial world market.