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    Development of Islamic Finance in Bosnia and Herzegovina

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    Author
    Smolo, Edib cc
    Seho, Mirzet
    Hassan, M. Kabir
    Subject
    development
    Islamic banking
    halal industry
    Islamic microfinance
    microcredit
    Shari’ah-compliant
    Bosnia and Hercegovina
    Date
    2020
    
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    Abstract
    This paper represents the analysis of Islamic finance development in Balkan with a case study of Bosnia and Herzegovina (B&H). In this analysis we will use the data from the local Islamic financial institutions and global reports with regard to the Islamic finance industry. Since Islamic finance has been practiced in B&H for years, its development has seen a remarkable success. Islamic banking, led by Bosnia Bank International (BBI), is the major player in the field. However, the industry faces a number of issues and challenges that impede its further development. Among major issues are a lack of legal and regulatory framework(s), a low level of public awareness about Islamic finance that leads to a low demand for its products, and a lack of government support for its development. Thus, in order for Islamic finance to develop further within the Balkan countries there is a need for a better promotion, legal and regulatory framework that will facilitate this endeavor and new players that will increase competition and add additional value to this market.
    Department
    Finance
    Journal title
    Journal of Economic Cooperation and Development (JECD)
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