Is Islamic banking viable?
Theoretical arguments and models developed by Islamic economists and the successful practice of hundreds of institutions in heterogeneous conditions both testify to the viability of Islamic banking. Islamic banking and financial institutions have now spread across several Muslim countries. Some non-Muslim countries and/or institutions e also keen to experiment with Islamic financial techniques. The average growth rate of deposits in Islamic banks over the thirty years has been over ten percent per annum. Many studies testify to the great success of Islamic banks in mobilizing resources. Another manifestation of the viability of Islamic banking is the fact that many conventional banks have also started using Islamic banking techniques in the conduct of their business, particularly in dealing either with Muslim clients or in predominantly Muslim regions. These include Chase Manhattan, The Citibank, Hong Kong and Shanghai Banking Corporation (HSBC), ANZ Grindlays, Union Bank of Switzerlan
