Ey world islamic banking competitiveness Term Paper

Ey world islamic banking competitiveness - Term Paper Example This will translate to a total of approximately $6.1 trillion by 2018. The major driver for this growth is internationalization of the banking system. This will bring in new challenges to the Islamic financial system. The major challenge posed by this growth is the adjustment of operating models, propositions, systems and tools in order to comprehend and fully capitalize on international financial opportunities. The future growth of the Islamic banks will be characterized by quality services and more access to the customer in the global markets. Many Islamic banks are already in the process of improving or replacing their core banking activities in order to adopt improved operations for a globalized banking sector. This will make them able to serve the global markets not just being constrained to the Islamic countries. The transformation program that will see the Islamic banks expand beyond the jurisdictions of Islamic countries will be enhanced by revenue growth, cost improvement, and dedicated leadership. Currently, several Islamic banks have been doubling in size every four years. However, the banks have faced capability constraints with shareholder returns dropping by up to 19 percent. Nonetheless, there are efforts being made to introduce Islamic banking to other non-Arab countries, especially in Africa; notably Kenya, Tanzania, Uganda, Malawi and Zimbabwe. The growth has also been facilitated by the ongoing rebalancing of the global economy and increased tendencies to shift global markets eastwards for economic growth. There have been regime and reform changes in different developing markets as well as internet and mobile banking technologies. The latter has made Islamic banking more efficient because customers have an improved access to banking services. The article under review also summarizes the global distribution of banking assets under the Islamic banking system. Qatar, Indonesia and Saudi