An analysis of the economic and regulatory challenges for the development of Islamic banking and finance in Maldives. / Aminath Shafaanaz

Abstract:

Though Islamic banking and finance is not a new concept, the use of Islamic banking and financial systems was mainstreamed quite recently with the establishment of various IBF institutions in countries like Malaysia, Saudi Arabia and Bahrain. Since the inception of Islamic finance to Maldives brought about a shift in the financial architecture of Maldives, IBF has been regarded as an area of financial system with the potential for growth. However, it is believed that the IBF sector in Maldives does not develop as it should due to the various challenges that impede its growth. This research therefore intends to address the various economic and regulatory challenges faced for the development of Islamic banking and finance in Maldives with the help of a primary research survey conducted among the population of individuals and the various Islamic financial institutions in Maldives.