Islamic finance in Europe (153)

Continuation

SWOT analysis of fully fledged implementation

WEAKNESSES

-    Dedicated physical and other infrastructures required to set up the unit;

- Cost efficiency may be affected in terms of resource management and overheads;

-      Only Islamic products can be offered.

OPPORTUNITIES

-   Can target customers already active in ethical and socially responsible investing;

-      Has more potential to grow and expand, both as a bank and as industry player;

-      Dedicated Shari’ah framework may enhance credibility;

-     Conventional institutions can leverage their existing resources to start an Islamic subsidiary.

From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)