Islamic banking's challenges and goals

Strong views were recently expressed by the Muslim Consumers Association of Malaysia that the Islamic banking and finance industry follows the letter but not the spirit of Islam. Islamic finance (IF) is developing at a remarkable pace. However, Islamic banking is now being accused of operating in a similar fashion as its conventional counterpart, and being skewed to more profit and business-driven interests than serving the real needs of a just society. The heart of Islamic finance involves a risk-sharing spirit, which does not prevail in the practices of contemporary Islamic banks. The importance of independent Syariah supervision will significantly influence the development of the Islamic capital market.