Islamic Banking and Finance

Abstract

The purpose of this master thesis is an attempt to elaborate Islamic banks, to examine whether these principles of operating in the market can be practical and furthermore, can it provide alternative methods of dealing with financial problems. An Islamic banking system is based on the principles of Islamic law (also known Shariah). Two main basic principles behind Islamic banking are the sharing of profit and loss and, significantly, the prohibition of the collection and payment of interest. In Albanian application, from our research & survey that we had with the customer (clients) of UBA we concluded that Islamic banks are not only used from the Muslim but also from the others. Bank offer the same product as the others. According to the questionnaire, the reason that attracts more the customer to use it is Low risk, new product, confidence problem and diversification.