Islamic Banking Financing Rate not competitive?
Submitted by admin on Thu, 06/10/2005 - 7:32amBy: Hj Zaharuddin Hj Abd Rahman*
zaharuddin@yahoo.com
This article was published in NST (21 sept 2005)
Recent development has seen banking industries thrusting ahead with the introduction of varieties of new products offering appealing features. On the contrary however, a random survey reveals that some people are not very pleased with the performance of Islamic Banks. One critical aspect in particular highlighted :
- The high profit rate charged by Islamic Bank for their financing product as compared to the interest rate charged by Conventional Bank. This factor is claimed to be the crucial factor leading to customers repelling from taking up financing from Islamic Bank.