Despite the claims by proponents of Islamic finance that there is a “pent-up demand” for Islamic financial products, in reality there seems to be a growing disinterest in such products. Regardless, the proponents continue to argue for adjusting the conventional secular financial system to sharia, regardless the market’s dwindling interest.
The decision by HSBC late in 2012 to significantly downsize its worldwide Islamic banking operations serves to illustrate the point. According to Reuters , HSBC made the decision despite being one of the pioneers in developing Islamic finance within the international banking sector. In 2012, HSBC was the first Western bank to issue an Islamic bond, when Its Middle East unit sold a US $500 million sukuk…………………………………….Full Article: Source