Case 1 : Coexistence of Islamic and Conventional Banking Operations.
Case scenario: Some conventional banks in Bangladesh started Islamic banking windows due to rapid popularity of Islamic banking system. From the very beginning Muslims and even non-Muslims are every interested in its customer friendly dynamic systems and procedures. They think it is more reliable. Muslims believe that usury is haram. As a result its customers are increasing day by day. So conventional banks started Islamic banking based on customer demand. But the concern is that two contradictory financial systems, conventional and Islamic, are in same place seems not good. For example-
(i) Procedural conflict: Two types of contradictory business goals, objectives, procedures, plans and policies are guided by two completely separate principles. This could lead Shariah- based banking to be flowed and customer dissatisfaction, which could call Islamic banking into question.
(ii) Profit distribution: The main problem of Islamic banking windows is their profit distribution system.
(iii) Islamic environment: Lack of Islamic environment is also seen there.
(iv) Lack of knowledge in Shariah: Another problem is many of the directors do not have sufficient knowledge about Islamic Shariah.
Task: Suppose, being a conventional banking professional you are now working in and Islamic banking window. As a part of the unit advising the central bank, analyze the advantages, disadvantages and risks of Islamic banking windows of conventional banks and recommend the best strategy in approving this kind of banking practices.
