financing in Islamic vs conventional banking: a customer’s perspective

Abstract

The aim of this research study is to compare both Islamic and Conventional banks in an attempt to analyze their performance and to understand the customer’s preferences between these two. More specifically, this project is to compare both forms of banking to understand which banking system is better for the customers. This project also aims to compare the banking structure of both conventional and Islamic banking to help us understand which financing is according to the Shariah and what forms of financing in conventional banking are prohibited in Islamic laws. This project highlights the parts of Islamic financing which are considered prohibited in Islam and what are the reasons for it. Islamic banking structure under the rulings of Shariah are considered most suitable for the general public as it protects the rights of everyone and does not provide undue advantage to one party over the other.