Caroline Wozniacki ( P SLIDE)

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Caroline Wozniacki ( P SLIDE)

  1. 1. GB30403CURRENT ISSUES IN OFFSHORE BANKING GROUP: WOZNIACKI— -- CAROLINE WOZNIACKI—NO NAME MATRIK NUMBER HE1 TEW JIA FUH BG09110323 202 PANG RUEN RIN BG09110285 203 ONG SII YIK BG09110179 204 CHIN WAN TING BG09110268 205 TAN SUK WEN BG09110109 206 LIM XIAN CHENG BG09110343 20 1
  2. 2. TITLE:CUSTOMER’S ACCEPTANCE ON FINANCIAL INSTITUTIONS’PRODUCTS: ISLAMIC VERSUS CONVENTIONAL FINANCIAL INSTITUTIONS 2
  3. 3. 1.0 INTRODUCTION1.1 Development of Financial Institutions Since 1940s and 1950s, theory of financial institutions hasdeveloped. First financial institutions was introduced in 1970s. In 1967, “Tabung Haji” introduced by Islamic Bank inMalaysia. Financial institutions has being more developed associatedwith the innovation of technology. 3
  4. 4. 2.0 OBJECTIVESObjectives: To investigate the relationship between customeracceptance and financial institutions. To investigate the differences between Islamic andconventional financial institutions. 4
  5. 5. 3.0 DISCUSSION AND FINDINGS3.1 Customer acceptance Interest rates offered conventional- interest charge on transaction activities; Islamic – Riba is prohibited Risk and returns conventional : long term, high risk and higher return Islamic : uncertainty (Gharar) is prohibited, their loss/profit will share between consumers and Islamic financial institutions 5
  6. 6. Quality of services Highly competency, friendliness, and efficiency of staff Islamic financial institutions have to put emphasis in order to get greater acceptance Islamic financial institutions provide Islamic products; Conventional provides both Islamic & conventional products Example : Bond- Sukuk Deposits/ savings – Musharakah, Mudarabah Financing - Murabaha 6
  7. 7. 3.2 Islamic Finance Instruments Murabahah Istisna’a •is a contract of •produce a specific sale and thing which is possible purchase at a to be made according profit margin to determined price between the and for a fixed date of supplier and the delivery purchaser of the Islamic Finance good. instruments Sukuk (Bond) Ijara (Leasing) •is an investment certificate •literally means (bond) that represents a ‘to give proportionate interest in a something on well-defined pool of assets rent’ that yield income and capital returns. 7
  8. 8. 3.3 Conventional Finance instruments Mutual Fund •a trust that Insurance pools the •insurance is a savings of a risk transfer number of mechanism investors who share a common financial goal. Conventional Finance instruments Pension fundMortgage Loan •protects•is a loan to individuals andfinance the families againstpurchase of your loss of incomehome in their retirement years 8
  9. 9. 3.4 Activities Prohibited by Islamic Finance•getting earning •earning ofthrough unethical interest on(or non-Islamic) contracts of loanactivity (or Riba) Activities Prohibited by Islamic Finance•uncertainty, risk •debt restructuringor speculation that is based on(Gharar) in compensationscontracts 9
  10. 10. 3.5 Which financial institutions better? Islamic financial institutions Ethical norms and social commitments Profit-sharing Fair distribution Eliminate economic ills Conventional financial institutions Borrowers can earn profits from margin Regulation of Islamic financial institutions more tight Has not to bear risk More familiar in customer perception 10
  11. 11. 3.6 What are the main results Positive relationship between customer acceptance and financial institutions’ products Islamic financial institutions are differ from conventional financial institutions 11
  12. 12. 4.0 CONCLUSION Financial institutions are likely to be moredeveloped and competitive globally. Islamic and conventional financial institutions areproviding more goods and services to customers. Customer must well-known their acceptanceagainst the products offered by financialinstitutions. 12
  13. 13. Thank youFor your attention! Q&A Section 13

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