Thirty Years of Islamic Banking History, Performance and Prospects

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?

Munawar Iqbal is Chief of Research in Islamic Banking and Finance at the Islamic Development Bank, Jeddah.

Philip Molyneux is Professor in Banking and Finance, and Director of the Institute of European Finance at the University of Wales, Bangor.