Islamic Banking in Lebanon: Challenges and Opportunities

MERHI, FIRAS (2012) Islamic Banking in Lebanon: Challenges and Opportunities. [Dissertation (University of Nottingham only)] (Unpublished)

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Islamic finance and banking have witnessed tremendous growth globally. It isn’t limited to Islamic countries anymore, where Western countries started welcoming this new industry. Despite all this growth development and success Islamic banking is achieving worldwide, this industry hasn’t yet shown a significant in the Lebanese Market. This paper aims to find the reasons behind the lack of growth of Islamic banking practices in Lebanon. Moreover it will try to spot opportunities present for this industry.

This research approaches its objectives throughout interviews with personnel in the Islamic banking industry, besides a survey which aims to add validation to the findings from the interviews.

As a result of the conversational interviews significant findings were spotted on challenges and opportunities faced by Islamic banks in Lebanon. It was found that the lack of legal and regulatory frameworks, the presence of different religious backgrounds, competition from conventional banks, political instability, and the absence of Islamic capital market are the main challenges that face Islamic banks in Lebanon. On the other hand, the attraction of fund from oil exporting countries in the gulf, involvement in micro finance, and involvement in privatization and securitization programs were identified to be the most viable opportunities present for the banks. Talking in number the survey respondents approved the challenges and opportunities identified, however with variation in agreement. The presence of different religious backgrounds and lack of Islamic markets were less stressed on in the survey. However all other challenges and opportunities were recognized and agreed upon.

This paper hopes to open the eyes of regulators and practitioners on the challenges and opportunities facing Islamic banking in Lebanon. Lebanon has been believed to play part in this industry in the region; however this wouldn’t happen with the current status of the industry.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 04 Apr 2013 14:21
Last Modified: 17 Oct 2017 12:39

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