The most important financial products and services of Islamic banking

Abstract

Islamic banking is only a segment of overall banking industry, but its significance is rising steadily. Although still only a 'niche' of the global banking market, it plays presently important role, while its significance will be even more important in the future. Islamic banking is relatively unknown to us. In our nearest neighborhood there are only two banks operating under Islamic i.e. Shariah principles. There is one bank in Bosnia&Herzegovina, although operates for fifteen years, only lately begun to significantly increase its assets and activity. There is also one small bank in Albania. Islamic banks, especially in light of the latest economic and political developments in Serbia (Etihad's acquisition of JAT, the project 'Belgrade Waterfront', etc.) are not so far away from the Serbian banking system, so it is necessary to understand the basic products of Islamic banking, which is the topic of this paper.