Article at a glance:

A growth model for Islamic banking

• Islamic banks have prospered, thanks to protected markets and increased demand for products that adhere to Sharia. But increased competition and other market changes will force Islamic banks to pay more attention to performance.
• Along with getting the basics of banking right, Islamic banks—either pure plays or arms of conventional banks—must address specific problems linked to faithfulness to Sharia, in areas ranging from organization to branding.
• Some structural obstacles related to treasury operations and scale may be overcome only through unprecedented cooperative efforts.
• As customers realize that they no longer must choose between Sharia-compliant products and international standards of performance and service, Islamic banks that can deliver both will have an edge.