Analysis of Islamic Banking in the UK

Analysis of Islamic Banking in the UK This research plan will be a hub of attention to inspect the opportunities of progress and growth as well as the major challenges to Islamic banking in the UK. The UK is the hub of Islamic banking and contains importance in Islamic financial sector due to its fast growing Muslim population. Islamic banking is facing some great challenges in the UK because the financial system is more favourable to conventional banking. There are greater opportunities in the UK for development and growth of Islamic financial system because Muslim community is eager to take financial products and they are willing to spend their lives according to their religion. There is need to educate the Muslim community toward Islamic financial products; service providers need to improve the information system within the communities and Islamic banking institution is need to work hard for survival and compete with conventional banking system in the sector of regulations and supervisions. The keywords in this resear ch are Islamic banking, Islamic finance, Muslim population, Muslim scholars, Islamic banking growth in the UK and Islamic banking challenges. 2.0 RESEARCH SIGNIFICANCE According to the figures of Office for National Statistics 2001, there was 1.6 million (2.8%) Muslims living in the United Kingdom but according to Home Secretary the Muslim population is increasing with high growth rate. In just seven years there is an increase of 40,000 Muslims in the UK and figures reached on 2 million which consist of 3.3% of total UK population. There was no any facility available to Muslim community before 2000 but the Muslim population want to spend their lives according to their faith. According to Islamic teaching interest is strongly prohibited in Islam and they want to take banking services such as saving accounts, current accounts, home finances, insurance and loan according to Islamic Shariah law. The United Kingdom is non-Muslim country and all its financial rules and regulation in favour of conventional banking. Because the Muslim community is active part of the UK economy, there was need to start a system which is acceptable to these people. Islamic b anking is started in the UK in 2003 with authorization of Financial services Authority. From 2003 to 2009 there is enough improvement and development in Islamic banking system. Currently two main high street conventional banks and one wholly Islamic bank are involved in Islamic banking services. But Islamic banking institution is still in the growth and infancy stage and Islamic banking is facing different challenges in this Western society such as socially, economically, fund management and regulations. With increasing popularity of Islamic banking in Western countries especially in the UK there are some difficulties in the way of Islamic Shariah law, Islamic banking system as well as the role of Financial Services Authority and UK Government are the critical issues. It is necessary to find out the opportunities for development and growth of Islamic banking in the UK and major challenges are faced by Islamic banking. 3.0 RESEARCH OBJECTIVES The main objectives of this proposal is to find out the opportunities for development and growth of Islamic banking in UK and challenges which are currently faced by Islamic banking in the world and United Kingdom specially. The main objective of this research proposal is to investigate the basic understanding of Islamic banking in community and in  banking sector because without basic understanding it is difficult to develop this financial  system, whether there is any opportunity for growth and development in the UK and which kind of challenges is faced by Islamic banking. The objectives of the research proposal are to: Examine that how important to know the fundamentals for Islamic banking for Muslim community and service providers. Investigate that do Muslims really believe and know the difference between Islamic banking and conventional banking and what are the factors which make Islamic banking prior to conventional for Muslim community. How important in Sha riah law and its practise for Islamic finance and the role of Islamic scholars in promoting Islamic banking services and products. 4.0 LITERATURE REVIEW Literature review illustrates the concept, scope and principles of Islamic banking around the globe in general and specifically in the United Kingdom. Islamic banking is a universal concept in the conventional banking, which is in practice with its many products in most of high street banks in the UK like HSBC, Lloyd TSB and as well Islamic Bank of Britain. 5.0 RESEARCH METHODOLOGY There are two main research paradigms positivistic and phenomenological. It is possible that different authors may use the alternative terms for these main paradigms in different time. The most commonly and alternatively used the terms are quantitative research method for positivistic and qualitative for phenomenological (Collis and Hussey, 2003). The originally the positivistic paradigm was developed in the natural sciences to study natural phenomena and it is confirmatory and deductive in nature. The phenomenological paradigm was developed in the social sciences to facilitate the researchers to research and analyze social and cultural phenomena and this approach is exploratory and inductive in nature (www.socialresearchmethods). The paradigm is very important because it gives you a right path to use the right methodology. According to Collis and Hussy (2003 p.55) à ¢Ã¢â€š ¬Ã…“Regardless of which paradigm you are employing, it is important that you pay attention to all the featur es, and ensure that there are no contradictions or deficiencies in your methodologyà ¢Ã¢â€š ¬?. The paradigm of this research is phenomenological because it tends to produce qualitative data not quantitative. The quantitative research is objective in nature that involves analysis of numerical data by applying statistical tests (Collis and Hussey, 2003). But the qualitative research is much more subjective in nature, concerned with generating theories and can be generalized in understanding of the phenomenon of challenges and opportunities of Islamic banking in UK. 6.0 RESEARCH PURPOSE Islamic banking is a hot topic in western countries especially in the UK. In the UK almost 2 million Muslims community is living and they want to spend their lives according to their religion (www.guardian.co.uk). This community is well contributing to the economy of the UK due to this the UK government gives more importance in the sector of Islamic banking. Nowadays the UK is the hub of Islamic banking and most of the high street banks providing the services of Islamic window. Due to this growing demand, Islamic banking faces some difficulties and challenges in western countries. The purpose of the study is to examine and analyze the growth and opportunities of Islamic banking in the UK.   7.0 RESEARCH METHOD For this research project, I chose to undertake qualitative research method. The qualitative method is a type of research that emphasizes the quality of meaning in consumer perceptions and behaviours; there are different criteria or techniques can be used in qualitative method such as in-depth interviews and focus groups. The most common qualitative research techniques include: In-depth interview Focus group Case study Direct observation   7.1 Reason for choosing In-depth interview: I chose in-depth interview technique for my qualitative research due to its unique advantages over other techniques such as focus group and questionnaires. In the way of in-depth interviews it is easy to speak to an individual and keep his attention on specific topic comparatively it is difficult in focus group interviews. There is a lot of time saving and reducing the hassles to take an appointment from individual. The main advantage of in-depth interview is that the interviews can be easily conducted with key community leaders through that researcher can get a fast overview of a community according to his requirements. 7.2 Sources of data: 7.2.1 Primary data: This research is based on a study of the UK because growing population of Muslims community is playing positive role for the UK economy. Actually most of the Muslims want to spend their lives according to their faith. In this case study it will be examined that what are the problems and opportunities in the UK for Islamic banking. I will use the qualitative method of research in this project. There are different techniques of qualitative method but according to the situation the in-depth interviews is more suitable form for this project. According to Collis and Hussey (2003) in phenomenological approach the interview questions are unstructured or semi- structured in pattern not closed questions like positivistic approach. The plan is that the researcher will prepare semi-structured questions that are helpful to take maximum information from interviewees because in closed questions it is possible that some important information will be ignored. In semi-structured interviews the resear cher has an opportunity to probe various areas and to raise specific queries during the semi-structured interviews. 7.3 Data collection methods: For the collection of primary data I shall use technique of in-depth interview. The plan is to hold the eight in-depth interviews from different sectors of the society. The researcher will hold four interviews from the banks authorities such as HSBC, Lloyd TSB and Islamic Bank of Britain that will give the clear facts and figures about the growth, opportunities and problems related to Islamic banking with reference to shariah compliance and Governmental authorities. Two with such Muslims who already customer of the Islamic banking which will facilitate the research through providing the information why they did take up Islamic banking, advantages and disadvantages of this system and as well about the scope of Islamic banking in UK. Two with such Muslims that are not using Islamic banking product which will helpful to investigate why they have not taken the Islamic banking product and which factors are stopping them from these services that are according to their faith. My plan is to speak to non-Muslims that are using the Islamic banking products that will provide the best information for the growth and strong fundamentals of Islamic banking. The planned is to conduct these interviews through sending letters to banking authorities and emails to customer services department of the perspective banks to arrange an appointment. To take interviews from customers and non-customers of the Islamic banking the interviewer will use the posters advertisement in the mosques and libraries in that area where the Muslims are living in majority. The interviews will be recorded using the voice recorder with the permission of the interviewees. If the voice recorder is not possible then the interviewer will take notes which will be summarized with full detail and also these notes will be available on demand for further investigation. 8.0 Research limitations: This research was proposed to be conducted in a very short span of 8 weeks, which forced the researchers to curtail the research from expanding in to a wider spectrum. According to the proposed planned of seven interviews it is possible that there should be some hurdle to get all information from customers of Islamic banking. In the course of research if the researcher will feel to get more widely information about the growth of Islamic banking then mini open ended questionnaires will be conducted. As the research was a part of student project there where huge limitations on financial resources. Lack of financial backup congests the team, which in turn curbed the research team from dilating the research. Conclusion: The purpose of research is to find out opportunities of growth and development as well the main challenges to Islamic banking in the United Kingdom. The primary data which was collected through in-depth interviews is to match with the different opinions of the community members about the scope and future of Islamic banking in the UK. The outcomes and results of these in-depth interviews are matched with aims and objectives of the research.

Class Distinctions and Internal Struggle in the Works of James Joyce Es

Class Distinctions and Internal Struggle in the Works of James Joyce      Ã‚  Ã‚   In the early twentieth century, Ireland, and more specifically Dublin, was a place defined by class distinctions. There were the wealthy, worldly upper-class who owned large, stately townhouses in the luxurious neighborhoods and the less fortunate, uneducated poor who lived in any shack they could afford in the middle of the city. For the most part, the affluent class was Protestant, while the struggling workers were overwhelmingly Catholic. These distinctions were the result of nearly a century of disparity in income, education, language, and occupation, and in turn were the fundamental bases for the internal struggle that many of Joyce's characters feel. Torn between the life they lead and the one they dream of, these people are reflections of the harsh setting in which Joyce himself spent his life. Although Joyce never explicitly explains why his main characters in "A Little Cloud," "Eveline," "Counterparts," and "The Boarding House" are so deprived, it is clear that they are at an unfair disadvantage in some way. He uses them to spotlight and protest the hardships that so many people of Dublin were forced to endure simply because of their religion and its effects on the other aspects of their lives.    The Irish-Catholics of Dublin in this era were overwhelmingly poverty-stricken, especially when compared to the English people who controlled the government and businesses. In fact, in 1914, the same year that Dubliners was first published, "74,000 people in Dublin lived in one-room tenements, and about 56,000 more in two-room tenements; and this 130,000 people represented 42 per cent of Dublin's citizens" (Cahalan 178). Even a noted employe... ...Handbook. Ed. James R. Baker and Thomas F. Staley. Belmont, Calif.: Wadsworth Pub. Co., 1969. 120-24. Joyce, James. "The Boarding House." The Bedford Introduction to Literature. 332-37. ---. "Counterparts." Dubliners. New York: Viking Press, 1968. 86-98. ---. "Eveline." The Bedford Introduction to Literature. 329-31 ---. "A Little Cloud." The Bedford Introduction to Literature. 337-45. Ledden, Patrick J. "Education and Social Class in Joyce's Dublin." Journal of Modern Literature 22.2 (1998): 329-36. Ryan, Ellen Bouchard, Howard Giles, and Richard J. Sebastian. Attitudes Toward Language Variation: Social and Applied Contexts. London: Edward Arnold, 1982. Torchiana, Donald T. Backgrounds for Joyce's Dubliners. Boston: Allen & Unwin, 1986. Walzl, Florence L. "Patterns of Paralysis in Joyce's Dubliners." College English XXII. (1961): 226.

Marvel Holdings

To determine Whether or not it will be difficult for Marvel or other companies in the MacAndrews and Forbes holding company to issued debt in the future, we should analyze two perspectives, one is historical and the other one is the future perspective. Historically, Marvel Holdings issued zero-coupon senior secured notes which were all secured by Marvel’s equity rather than its assets or operating cash flows. However, this was a very attractive offer since the stock price was trading above $25 per share which had a value of $1.9 billion, well above the face value of the bonds issued. The interest payments on these bonds would be made from revenues received through tax sharing agreements between Marvel and Marcel III Holdings; moreover, all issues were scheduled to mature in April 1998, which in other words, the company would have a huge cash outflow when the bonds came to maturity. After the issurance of debt, company’s revenue decrease due to the comic book and trading card business failure, which caused share price to fall significantly. Despite the problems of revenue fallen, Marvel acquired SkyBx and financed the acquisition with $190 million of additional debt in early 1995. S&P then downgraded the holding companies debts from B to B-. The fianancing structure and the revenue fallen problems lead to Marvel announced that it would violate specific bank loan covenants due to decreasing revenue and profits. Moody downgraded Marvel’s public debt after the announcement and caused the price of the zero-coupon bonds to fall drastically by more than 41%. Moreover, their two largest institutional holders desided to sell the bonds even at a price of $0.37 per dollar of face value. When the resturcture plan was announced, the stock price fell by more than 41% and the zero-coupon bonds fell by addition 50%, to $0.18. As shown on the Balance Sheet, there was a $625.8 millions of current portion of long-term debt in 1996 which was increased significantly compare to previous years. Moreover, the short-term borrowing has also appeared on liability in the year of 1996. Total long-term debt and total liabilities also increased drastically in 1995 and more significantly in 1996. From the Consolidated statement of operations, the cost of sales increased since 1995. Moreover, the amortization of goodwill increased which is due to the decrease in revenue of trading cards and comic books. Interest expense also increased due to significant increase in debt. All these caused a loss in income and earning per share becomes negative at the end of 1995. Based on all the above historical evidences, it will be really difficult due to the fact that the company has a debt-to-total capital ratio of 88% which is $805.4 million in total debt and $107.4 million in equity. With the downgrade of the public debts, it will make the financing situation even worse since the issueing notes or bonds will not raise as much financing as when the rating is good and will be more costly since the interest rate has to increase due to the increase in risk. In the future perspective, a restructure plan was mentioned by Perelman. However, Marvel was facing three options: 1. if marvel was going under chapter 7 liquidation, the debtholders would get around 70% of the original value and the holding company debtholders and equityholders would get nothing. 2. If Marvel did not aquire Toy Biz, the total enterprise value would between be no more than $660 which was not enough to settle the debt, and the equity would again be worthless. 3. If Marvel acquired Toy Biz, the company could transform into an integrated entertainment company which would operate theme restaurants, movie studio, entertainment software, and etc. Marvel believed with the growth of new media exposure, they would be able to have modest growth and pay secured and unsecured creditors in full. This plan had passed the feasibility test, which in other words, the company was not likely to be liquidized or reorganized. let’s assume Marvel implement the restrurture plan and make modest growth of profit. As they slowly payoff the debts, start earning profit and rebuild their reputation, It will become easier to raise debt. Moreover, if their performance is good, it might be even possible to increase their rating which will lower the cost due to the decrease in default risk.

Interesting And Depressing - Free Essay Example

Sample details Pages: 1 Words: 397 Downloads: 4 Date added: 2019/08/08 Category Literature Essay Level High school Tags: Mark Twain Essay Did you like this example? Do you know Mark Twain? Well ive been getting to know him alot. Here is one of his quotes Kindness is the language that the blind can see and deaf can hear. I think it means that be kind to everyone. Don’t waste time! Our writers will create an original "Interesting And Depressing" essay for you Create order Now im going to discuss his childhood,career,and death. Lets go! Mark had a normal childhood he moved when he was like 4 i wrote it down but yea he moved near Hannibal. He started thinking of writing books around that time. He grew up in hannibal up until 17 but more stuff happened before then. His dad died when he was 11 or 12 one or the other.He was a judge,shopkeep,and a lawyer very noble man but that was only a little while. Thats his childhood in a nutshell its not copied i just like that word. His career was interesting and depressing like he has a depressing end im serious. Ok so at the start he had a very successful company but at the end it went bankrupt which is some of the depressing part but wait till the end. Next after it went bankrupt he had no money and he started to lose money but he made it threw and got married to olivia langdon clemens and had 4 children named susy,clara,jean,and langdon. But im not done yet im just getting started with his career net was when he started writing books he wrote alot made lots of money but still he had a normal life till all but one of his children died his wife died to so there was depressing part. Next im going into his book writing he had a good career made lots of money but he got by. Mark Twain impacted the world by helping authors get to write more and leave very educational quotes but thats here nor there. He helped people be nice a hole lot more. Like his quote was awesomekindness is the language the deaf can hear and the blind can see.Thats really inspirational dont you think. He was an amazing writer. Mark twain had a peaceful death he died im london bye a heart attack. But he was still a good person minus that part where he was accused of being racist. Yeah he was really awesome and cool i bet he was funny to. R.I.P Mark Twain.