What is it about?
Conversion process of conventional bank into an Islamic banking in Libya is surrounded and faced by many challenges. Internal challenges are not less significant than external ones. Trained human resource, lack of awareness in Islamic banking, and resistance to change to Islamic banks are considered as internal challenges which represent the stage of readiness to convert the sector.
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Why is it important?
This will help the MENA region to look into deep state problem for transforming conventional bank into an Islamic banking system. This study an empirically conducted and its findings are important to somehow generalize the state of the art problem.
Perspectives
This research was great in terms of a joint efforts and writing this book chapter was a great pleasure as it has co-authors with whom I have had long standing collaborations. This research also lead to rare resistance by groups at the banking industry itself for a fear of unknown.
Research Professor Dr. Khaliq Ahmad
Putra Business School-UPM-Malaysia
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This page is a summary of: Islamic Banking in Libya, January 2020, IGI Global,
DOI: 10.4018/978-1-7998-1611-9.ch002.
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Resources
DOI: 10.4018/978-1-7998-1611-9.ch002
This is book chapter
IGI Publications
Chapter 2 DOI: 10.4018/978-1-7998-1611-9.ch002 ABSTRACT This chapter identifies the internal and external challenges for Islamic banking in Libya. It is a conceptual work using secondary data where relevant concepts in terms of challenges of the conversion process in Libya were demonstrated. Conversion process is surrounded and faced by many challenges. Internal challenges are not less significant than external ones. Trained human resource, lack of awareness in Islamic banking, and resistance to change to Islamic banks are considered as internal challenges which represent the stage of readiness to convert the sector. On the other hand, the economic structure, the political situation, and the regulatory framework hinder the process externally. This implies that stakeholders should come up with comprehensive strategies and plans about the conversion process which will improve the readiness level of the banks, raise the awareness and willingness of their employees, and increase the skills of banks’ staff. INTRODUCTION Islamic finance has grown to the extent that it has become a standard norm in the global financial system. At an average growth rate of more than 15% (GIFF, 2016), Islamic financial assets have reached US$ 2.1 trillion as at the end of 2017, even though a bit slower than expected (Damak, 2018). Interestingly, the demand for Islamic financial products is still very high especially with the opening of new markets Islamic Banking in Libya: Emergence, Growth, and Prospects
Islamic Banking in Libya: Emergence, Growth, and Prospects
This chapter identifies the internal and external challenges for Islamic banking in Libya. It is a conceptual work using secondary data where relevant concepts in terms of challenges of the conversion process in Libya were demonstrated. Conversion process is surrounded and faced by many challenges. Internal challenges are not less significant than external ones. Trained human resource, lack of awareness in Islamic banking, and resistance to change to Islamic banks are considered as internal challenges which represent the stage of readiness to convert the sector. On the other hand, the economic structure, the political situation, and the regulatory framework hinder the process externally. This implies that stakeholders should come up with comprehensive strategies and plans about the conversion process which will improve the readiness level of the banks, raise the awareness and willingness of their employees, and increase the skills of banks’ staff.
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