Abstract
The Islamic banking and finance practices have been investigated in this dissertation in terms of their philosophical and economic underpinnings versus those of the western banking system, Islamic banking and financial management concepts, modern Islamic banking and finance practices/instruments, achievements and problems , prospective opportunities and obstacles in the U.S., and the possible acceptability in the U.S. of Islamic banking practices as perceived by both Islamic and U.S./Western banking executives. A comprehensive literature review included the previous first five points. A survey was conducted to collect data on the U.S. acceptability as perceived by three groups of bankers: Muslim bankers, U.S./western banks familiar with Islamic banking system, and U.S. Bankers unfamiliar with Islamic banking system. The survey questionnaire included 20 selected Islamic banking and finance practices that were used by most major Islamic banks. It provided a matrix that permitted the respondents to evaluate the U.S. The perceived acceptability of the stated Islamic banks' practices on a scale ranging from totally acceptable to totally unacceptable. Muslim respondents were also permitted to evaluate the importance of those practices to Islamic business on a scale ranging from totally unimportant to eniely important. A high rate of response was attained, and related SPSS statistical methods were used to analyze the collected data. The results revealed that all the aforementioned three groups of respondents perceived at least ten out of the 20 Islamic banking and finance practices as acceptable in the U.S. Those ten practices were investment accounts, transfer of funds, cost plus finance, profit and loss sharing, trust financing, leasing, lease purchase, letters of guarantee, flexible investment of deposits, and trustee role. To implement Islamic banking and finance in the U.s. it was recommended that Islamic banks/finance companies assume the role of agent for transferring and exporting technology from the U.S. to the Muslim countries, establish an international Islamic investment bank/company with the necessary business network to serve its anticipated market segment in the U.S., and finally sponsor important technological inventions, development and other economic projects in the U.S. with visible potential of reasonable results that would mutually benefit the future of both national and international cooperation and solid progress. Finally, there is still a need for additional research on how to implement Islamic banking and finance practices in terms of management and marketing strategic and execution plans, and how to apply the Islamic banking practices to help solve the national and international debt dilemma and other problems of economic and social development. Research in such areas would benefit both national and international progress if it were based on realistic data or information, and sincerity of purpose for justice, peace and progress for all peoples all the time.