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European challenges for Islamic Banking


  • Sorina Aioanei

    () (Academy of Economic Studies, Bucharest, Romania)


The paper briefly review the growth in Islamic Finance, implications of the Islamic banking in Europe and challenges to be met, in terms of compatibility with local banking markets, product development and strict anti-money laundering rules. The paper analyses also the hawala remittance system and the negative association with the Islamic banks. This type of funds transfer is often related with illegal remittances, money laundering and financial crime. As acting as European banks, newly established in Europe Islamic banks, as new comers, will have to face the critics about their possible link with terrorism support and money laundering.

Suggested Citation

  • Sorina Aioanei, 2007. "European challenges for Islamic Banking," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 10(25bis), pages 7-20, November.
  • Handle: RePEc:rej:journl:v:10:y:2007:i:25bis:p:7-20

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    References listed on IDEAS

    1. Baillie, Richard T. & Bollerslev, Tim, 1992. "Prediction in dynamic models with time-dependent conditional variances," Journal of Econometrics, Elsevier, vol. 52(1-2), pages 91-113.
    2. Bollerslev, Tim, 1986. "Generalized autoregressive conditional heteroskedasticity," Journal of Econometrics, Elsevier, vol. 31(3), pages 307-327, April.
    3. Bollerslev, Tim, 1987. "A Conditionally Heteroskedastic Time Series Model for Speculative Prices and Rates of Return," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 542-547, August.
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    More about this item


    hawala; interest- free; money laundering;

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets


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