Impact of Shariah Government on CBN Guidelines on Non-Interest Banking System: a Case Study of Jaiz Bank
CHAPTER ONE
OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine the impact of Sharia governance on CBN guidelines on non interest banking system.
- To analyze the benefits of non interest banking system in Nigeria.
- To identify the challenges of Islamic banking under the Sharia governance framework
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
This chapter gives an insight into various studies conducted by outstanding researchers, as well as explained terminologies with regards to Impact of sharia governance on CBN guidelines on non interest banking system. The chapter also gives a resume of the history and present status of the problem delineated by a concise review of previous studies into closely related problems.
CONCEPTUAL FRAMEWORK
Islamic finance is an integrated, compound and composite field of knowledge that welds together several compartmentalized branches which include Islamic banking, Islamic insurance, and Equity funds, Islamic investment, Islamic venture( capital leasing) under the Islamic system among others Ahmed I. (1999). The fact that Islam is unique way of life distinct from all other ideologies, naturally extend to the economic life of the members of the muslim ummah. Mordern banking based on interest is rejected as un-Islamic because the unequivocal prohibition of riba by the Quran, which is consensus of jurists had interpreted as covering all kinds of interest, usurious or otherwise, irrespective of and function of the loan.
Islam makes a clear distinction between what is halal(lawful) and what is haram (unlawful) in pursuit of economic activities. The objective of welfare Islamic goals in its dealing with persons or institutions is considered them as partners and thus were profit is made it is shared equitably between them and were losses are incurred it is shared together.
Unlike conventional banks, basic principle of operation is to maximise profit and thus, it does not seek to be welfare oriented and it consider those who borrow from them not as partners but creditors. Any loss incurred is at the expense of these who received the advances from them.
The banking activities carrying out in Nigeria as in any other secular economy is interest based. As interest is evil it lacks full supports from the Nigerian Muslims to resort to them in obtaining loans soas to build and develop the economy. Therefore,this research wishes to address these problems by proposing the introduction of Islamic banking system as an alternative to the conventional banking system since it is based on profits and losses sharing. It is an alternative which holds ultimate solutionto secular banking, thus everybody with a viable project would have an access for finance on non interest basis and see how Islamic bank can turn around the economy of Nigerians in order to bring accelerated development to its citizens.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter covers the description and discussion on the various techniques and procedures used in the study to collect and analyze the data as it is deemed appropriate.
It is organized under the following sub-headings:
- Research Design
- Area of the Study
- Population of the study
- Sample and sampling procedure
- Instrument of Data Collection
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
This chapter is devoted to the presentation, analysis and interpretation of the data gathered in the course of this study. The data are based on the number of copies of the questionnaire completed and returned by the respondents. The data are presented in tables and the analysis is done using the chi-square test.
CHAPTER FIVE
FINDINGS, CONCLUSION AND RECOMMENDATION
The objectives of the study were to
- To examine the impact of Sharia governance on CBN guidelines on non interest banking system.
- To analyze the benefits of non interest banking system in Nigeria.
- To identify the challenges of Islamic banking under the Sharia governance framework.
Findings made from the study revealed the following:
- Sharia governance does have a significant impact on CBN guidelines and non interest banking system.
- The non interest banking system is beneficial to Nigeria.
- There are challenges of Islamic banking under the sharia governance framework.
- A major challenge of Islamic banking is the lack of acceptability in southern Nigeria.
- Non interest banking helps to improve the economy of Nigeria.
- Non interest banking supports the establishment and development of SMEs in Nigeria.
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