Journal of Research in International Business and Management

Islamic Banking development and evolution: current issues and future prospects

Abstract

Ajagbe T. S. , Brimah A. N.

A number of economic concepts and techniques were applied in early Islamic banking including Mufawada, Mudarabah and Al-mal as existed in the medieval Islamic world. Interest free banking attracts more attention because of the political interest. The most controversial issues about interest free banking are the profit and loss sharing formulae (Concept of Mudarabah). Disenchantment with the value neutral capitalist and socialist financial systems prompted not only Muslims but also others to look for ethical values in their financial dealings, and in the west some financial organisations have opted for ethical operations. It is in the course of brain storming for proffering solution to unpalatable state of our economy’s financial system that the prescribe for Islamic banking (Non-interest banking) in Nigeria is being agitated for. The focus of this paper is to assess and predict the degree of acceptability of Islamic banking and finance in Nigeria. The research work carries out with the methodology of questionnaire-the primary data.

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