General Introduction
1.1 Background To The Study
Islamic Banking is interest free banking which makes it necessary for Islamic Banks to take active part in the operations of this business. Banks including Islamic Banks prefer to take minimum risks. On the surface it may seem that Islamic Banks face more risks and hence, will have more volatile or even negative returns on their assets.
This research project analyses the risks management procedures of Islamic Banking by giving differential analysis on risk management, and facility management. There are basically 3 types of Banks, commercial, development and central Bank, within the commercial Banking sector, there are some Banks operating on different principles, such as the JAIZ BANK which operates on the principles of Islamic Banking.
This research is aimed at ascertaining the risk and facility management strategies adopted by commercial Banks to enable them stay afloat and remain profitable. Different Banks adopt different strategies depending on their orientation, objectives and organizing principles.
The histonography of early Islam refers to the study of early history of Islam during the 7th century, from prophet Muhammad’s 1st revelations in A.D 610 until the disintegration of the rashidun caliphate in A.D661, and arguably throughout the 8th century and the duration of the Umayyad caliphate, terminating in the incipient Islamic golden age around the beginning of the 9th century.
The first experimental local Islamic Bank was established in the late 1950’s in a rural area of Pakistan which charged no interest on its lending. A remarkable effort in sharia complaint saving Banking was undertaken 1968 in rural Egypt by economists Ahmad Elnagger to appeal to people who lacked confidence in state run Banks.
The influx of “petro-dollars” and a general reislamization following the October war and 1973 oil crisis gave great help to the development of Islamic Banking sector. In 1975, the Islamic Banking sector was set up with the mission of providing funding to projects in the member countries.
The 1st modern commercial Islamic Bank, Dubai Islamic Bank, opened its doors in 1975. Islamic Banks have over 300 institutions spread over 51 countries including United States, United Kingdom, and Nigeria
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