Conversions to Islamic Banks: Jurisprudence; Economic and AAOIFI Requirements

Document Type

Article

Publication Date

2015

Abstract

The objective of this study is to investigate the conventional banks conversion into Islamic banks. It provides a significant opportunity to develop the understanding of the Sharia requirement to the conversion process and what the conventional banks have to do in order to be converted into Islamic banks. In addition, it discusses the jurisprudential and financial motivations behind traditional banks converted into Islamic banking. Moreover, it discusses the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) conversion standard. The study suggests that the conventional banks must commit to all conditions to successfully complete the conversion process and to be fully committed to Sharia law.

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