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ST. MARY’S UNIVERSITYFACULTY OF ACCOUNTING AND FINANCEAN ASSESSMENT OF OPPORTUNITIES AND CHALLENGES OF ISLAMICBANKING IN THE CASE OF WEGAGEN BANK (head office)BYKalid BilalTekluMirafesbhatHailemichaelTesfayeAdvisor: -Girum.TMarch, 2021ADDIS ABABA
Table of ContentsAcknowledgement.......................................................................................................................................3List of acronyms/ Abbreviations..................................................................................................................4List of Tables................................................................................................................................................5CHAPTER ONE........................................................................................................................................6INTRODUCTION...........................................................................................................................................61.1 Background of the study.........................................................................................................61.2 Background of the Organization..........................................................................................71.3. Statement of the Problem.....................................................................................................81.4 Research Questions................................................................................................................101.5 Objective of the Study...........................................................................................................101.5.1 General Objective............................................................................................................101.5.2 Specific Objective............................................................................................................101.6. Significance of the Study.....................................................................................................101.7 Scope of the Study...........................................................................................................................111.8 METHODOLOGY OF THE RESEARCH..................................................................................111.8.1 Research approach of the Study................................................................................111.8.2Research Design of the Study......................................................................................111.8.3 Population and Sampling Technique of the Study................................................111.8.4method of Data collection..............................................................................................121.8.5 Methods of Data Analysis.............................................................................................121.9 Limitation of the Study..........................................................................................................121.10 Organization of the paper..................................................................................................12Chapter two...............................................................................................................................................13Review of Theoretical and empirical Literature.........................................................................................13Introduction...............................................................................................................................................132.1 Review of Theoretical Literature......................................................................................................132.1.1 Concepts and definition of Interest free Banking......................................................................132.1.2 Principles of interest free Banking Service................................................................................152.1.3 The Need for Islamic Banking in Ethiopia..................................................................................16
2.1.4 Sources of Funds for Islamic banks...........................................................................................172.1.5 Uses of financial resources in Interest free Banking..................................................................202.1.6 Opportunities to interest free banking.....................................................................................242.1.7 Challenges faced by Interest Free Banking................................................................................242.1.8 Awareness of Interest Free Banking Products and Services......................................................252.1.9 Benefits of Islamic Finance........................................................................................................262.1 Review of Empirical Literature.........................................................................................................27CHAPTER THREE........................................................................................................................................29DATA ANAYSIS AND INTERPRETATION........................................................................................................29Introduction...............................................................................................................................................293.1Demographic characteristic of respondents.....................................................................................293.2Challenges of practicing Interest Free Banking.................................................................................313.3 Opportunities of Interest Free Banking............................................................................323.4 The level of awareness, of banker’s towards the Interest Free Banking products on offer inWegagen bank.......................................................................................................................................343.5 Benefits of adopting Interest Free Banking......................................................................................353.6 Evaluating the benefit of Islamic windows in Wegagen bank..........................................................373.7 being encountered by the Islamic Windows of Wegagen bank........................................................37CHAPTER FOUR..........................................................................................................................................38CONCLUSIONS AND RECOMMENDATIONS................................................................................................384.1 Conclusions......................................................................................................................................384.2 Recommendations...........................................................................................................................393
Acknowledgement4
List of acronyms/ Abbreviations5
List of Tables6
CHAPTER ONEINTRODUCTION1.1 Background of the studyIslamic financial institutions are those whose goals and activities are driven byIslamic law (the shariah).They are thus distinguished from “traditional”organizations, which are unconcerned with such issues. It allows for theconsideration of operations that may or may not be interest-free but arenevertheless imbued with such Islamic principles: riba avoidance (in the broadsense of unjustified increase) and gharar (risk speculation based on uncertainty);the emphasis on halal (religiously permissible) activities; and, more broadly, thepursuit of justice and other ethical and religious goals (Ibrahim, 2010). According toGusau(2000), the "Islamic banking system is supposed to operate completely withinthe shariah in all of its activities, both in the sourcing of funds and in thedisbursement of funds."It prevents not only interest in all of its implications, but

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Term
Spring
Professor
Smart
Tags
The Land, Sharia

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