Interest rate islamic banking
This study investigates the impact of interest rate changes on the demand for Islamic financing in a dual banking system. Theoretically, any change in the interest rate would lead customers who are Islamic banks are continuously growing and in numbers since 1971. “At a growth rate of 15 percent, a year, Islamic banking has $65 billion in assets. However, this is less than 1 percent of bank assets worldwide” (Wilson, 1995). The first modern bank to offer interest-free financial products was Nasser Social Bank, a public institution, in Egypt in 1971. Next came the first private bank, although with the support of the governments of UAE and Kuwait, the Dubai Islamic Bank in 1975.