Tag: Low Deposit Rates in Islamic Banking

Paradox: Trade-off Between Shari’ah Compliance and Price Competitiveness

Shari’ah compliance in Islamic banking is necessary. However, achieving that requires certain additional operations and costs which may lead to Islamic banks incurring some additional costs which conventional banks simply avoid. This may make Islamic banks to become costlier than conventional banks and which will reflect in weak position in price competitiveness.

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