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Challenges in Establishing an Islamic Banking and Finance System: Evidence from Ghana

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  • Broni, Mohammed Yaw

Abstract

After sixty-one years of independence, there is no single Islamic banking institution operating in Ghana. Given that Muslims are commanded to stay away from usury, coupled with the popularity of Islamic finance globally, it is surprising why the Islamic banking industry is yet to take root in the country. This paper seeks to determine whose responsibility it is to initiate the establishment of an Islamic banking and finance system. The genesis of Islamic banks in Egypt, Malaysia and Bangladesh were reviewed, and compared with the situation in Ghana. The analysis show that stakeholders such as devoted Muslim businessmen, governments, and well-informed Muslim groups, are well placed to initiate the establishment of Islamic banks.

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  • Broni, Mohammed Yaw, 2018. "Challenges in Establishing an Islamic Banking and Finance System: Evidence from Ghana," MPRA Paper 89136, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:89136
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    References listed on IDEAS

    as
    1. Jasim Al‐Ajmi & Hameeda Abo Hussain & Nadhem Al‐Saleh, 2009. "Clients of conventional and Islamic banks in Bahrain," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(11), pages 1086-1112, September.
    2. Sukmana, Raditya & Ibrahim, Mansor H., 2017. "How Islamic are Islamic banks? A non-linear assessment of Islamic rate – conventional rate relations," Economic Modelling, Elsevier, vol. 64(C), pages 443-448.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Islamic banking and finance; Usury; Financial inclusion; Shariah compliance;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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