I m aiming in my dissertation to built a model of Islamic credit in Britain financial market and especially for the Islamic bank of Britain. There is no Islamic Credit Card present at the moment in the Britain and the only Islamic financial institute is Islamic Bank Of Britain. My study is based on the Islamic credit cards which are prevailing in the financial markets of Middle East and Malaysia. Most Banks in Asia they been offering such cards based on deferred payment knows them (bay to the inah) concept which is later on been discovered as controversial, mock and totally against the Islamic law (Shariah). As for as Shariah is concerned most of banks in Asia have their own Shariah compliance tribunals for decision-making but I know the problem was that at same Time most of Shariah boards to were adverse opinion on the same subject matter. These But all of solutions providing by these Asian banks to were not compatible according to the Holy Book Quran Said By the “Bankers from Middle East”.
While in the Gulf countries banks have new plans to access the Muslims believes and offering them credit card. Their approach is very seemlier to principal and granter, or guarantee based system. My financial model will carry out the religious and financial prospective both at the same Time. This model may also have loads impracticability’s as for as adoption by the Islamic Bank Of Britain or their might be I know much complex procedures required.
Aim
I am aiming to construct, regarding Britain’s Islamic bank Islamic credit card’s financial model and especially for Britain’s financial market.
The goal follows on somebody’s heels is the academic lecture core goal.
To finds out credit card’s effect according to Islamic law (Shariah) regarding the payment pattern. In the British appraisal credit card market as well as may Muslims use these card. May provide credit card’s reliability and the effect in the market revelation Islamic. What regarding uses in Islamic credit card’s appropriate model existence these concept use aspect in credit card’s function finding out the latent Islamic principle credit card isWhat Is Credit Card
The credit card possibly is defined to arrive invariable compensation card that to propose may to purchase cardholder’s credit specific quantity which and pay the flowered amount.
Outstanding widespread balanced, in is assigned in the time is may pay, or the interest will cause on surplus balanced. (Paxon and five, 1998)
History of Credit Card
The credit card system’s first type is developed in the US. Later in 20 centuries at the beginning, will use in the metal plate to the Western Alliance and other financial institute recording the customer detail and the account. The FlatbushState bank introduced its monthly allowance account bank accountholders in 1947. In 1951, the FranklinState bank was issues credit card’s first financial institute to other bank customer. (Lindsey 1980). the diners club issued in 1950 the first modern credit card, and was called the travel and the entertainment (T & E) card. The US express followed the visitor who ate meal to club and to provide in had the credit period characteristic between the expense and the payment for the credit card 1958, but did not have the partial payments facility. (Wonglimpiyarat 2005) the national credit card first developed and allows it to stretch across Earth’s other banks in 1966 from the American Bank. Will become all things as for the result rival by later to result in the card between the bank and the main charge name which will provide is joined. (Frazer 1985)
The Credit Card In BritainBarclays issued in 1966 the first credit card in the agreement later by the American Bank. Barclays imports all facilities and the structure in Britain revises the American Bank operation. (Wonglompiyarat 2005)
Credit Card SystemThe visa, the switch and Master manage under the four directions plan. These all transactions through the plan involvement are four main parties;
Holder of the card, through the use of card, pays the payment, The card publisher, provides the card to the user, and runs the trading account, The retail merchant, sells the goods or the service back-spacing promise for the payment. Merchant acting as a purchasing agent, the absorption retail merchant, obtains from the card publisher’s payment and the repayment gives the merchant. They have frequently with the merchant, but it’s Relations; does not force.Islamic Bank Of Britain
Islamic Bank Of Britain is only Shariah the obedient financial service authority (FSA) authorization financial institute in Britain. It started its operation and located at three British various cities and the branch in 2004 in London and the main office in the Birmingham. Other Islamic’s bank, I elect likely the bank goal also will provide the choice for the regular mechanics of banking through to avoid interest (Riba) and definitely to maintain the money only spends at the moral enterprise. At present the bank expands its product rapidly and serves two pair of current finances and the banking industry crisis, the Islam community in Britain, the availability non-interest credit card, in massive the growth Islamic’s mechanics of banking, chooses the choice modern mechanics of banking product and the service, the integrated Islamic financial concept is looking like Lloyds TSB modern bank neutral HSBC and is not voluntarily the high interest rate strong existence rule credit card. (www.islamic-bank.com)
Literature reviews
In today’s society the credit card uses the achievement to pay money a basic way. Has to credit card’s various uses for example payment, the Credit facility, the cash advance easy way and as for the status symbol. Presented the payment proposition money value way compared with Islamic credit card and the conventional credit card, has various questions which a lower penalty spends, provides free bonus year after year, a fancier look and the proposition expense gives up. (Ma’ Sum total Billah 2001). Islam permission use credit card, because it does not incur the interest, and at the same time it does not violate Shariah any rule. (Ahamad and lake huron 2002). Whether I did know the credit card service only pays the main amount as for the user to add on operates and the overhead charge credit card, the financial entry is permitted, because it does not involve any kind in the Islam the element benefit which forbids. (in el Azura 2006). The use to pays money other way credit card’s advantage for the purchase, the cost effectiveness, the security and the world acceptability is easy to use. (Mohammad 2003).
Justification
In the Middle East and Malaysia the method which discussed, anticipated financial model and gift payment method and religious belief flaxen cloth. The research possibly completes the explanation, but is may be the description possibly takes the bank with it to this domain research union important work.
Hypothesis
The hypothesis has the limited research in the region Islamic credit card in Britain. (2007) the Shah pale research which and the discovery conducts has in the human limited aware about Islamic credit card. Mohd (2008) has identified influence Islamic credit card usage several factors for them. Had has developed following three hypotheses;
H1: Technical and the function service’s quality has to immediate influence Islamic credit card user.
H2: The religion has positive influence to the usage of Islamic credit card.
H3: The culture is directly affects Islamic credit card’s choice, the usage and satisfaction.
Research Methodology
The research methodology based on secondary data heavily. My research may use to the bank website in the Middle East and Southeast Asia and various origin together for example article, the research, the journal and the book. Other origins and insure London including on-line Islamic’s institute mechanics of banking, the Middle East banker magazine library Islamic finance (www.maktabonline.com), journal and complete other on-line resources. Because appears self-confidently in the promiscuous method has the research qualitative and the quantitative method mix. Except that beside further studies may be appears to the possibility to it with the current research findings.
Scope
Core goal, if the research is the development to the financial model Islamic credit card Britain’s Islamic bank. Bank possibly for theirs credit card research applications research at that time credit card in theirs stock list, but its long waiting. The report will also highlight the key question for example in massive the general manner, the belief and the perception about the non-interest Islamic product and the service option and the usage. The report is willing in the modern day mechanics of banking also to show the convention mechanics of banking system choice and Islamic financial concept integration, and, when result trend toward mechanics of banking Islamic way.
Limitations
Limits all hates diligently, the research has the loading limit. First it is limited Islamic the credit card and Britain’s Islamic bank. Next, the sample will be small, and will not provide to the population overall picture. It will concentrate mainly signs in upon arrival at work a broader picture in the merchant, because of it’ True s stemming from found individual the control use Islamic financial organ. Also the will did not think that perhaps the religious responder and it neglects to the Islamic financial service Islam user’s great proportion.
ConclusionWhat the conclusion Islamic Bank of Britanavoids establishing likely is the regular mechanics of banking provides chooses other Islamic bank interest (Riba) and definitely maintains the money only spends at the moral enterprise. Two pair of current finances and banking industry crisis, the Islam community in Britain, is not the availability strong existence non-interest credit card, to chose the modern mechanics of banking voluntarily in massive, Islamic financial concept integrated choice in has looked like HSBC in the modern bank, and a higher interest rate in the regular credit card, there was in the non-interest giant hidden growth potential sum
