| Islamic banking is sitting on the horns of a double dilemma. Islamic financial institutions have to compete with conventional banks if they have to stay in contention and yet be compliant with Sharia principles while carrying on business.
On the other hand, due to their relatively smaller size and operations, Islamic banking products tend to become more costly, further limiting the scope. In fact, according to the latest numbers out in the market, the average return on equity of Sharia compliant financial institutions has fallen in comparison to the situation one year ago...............................................Full Article: Source
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