How "helal" can an Islamic Bank be? The Islamic Finance in Germany and Turkey

Extracts of Dissertation

Wissenschaftlicher Aufsatz, 2014

20 Seiten



In a world of global finance, the cash flows are linked. So this applies also to the emerging Islamic financial institutions. Due to this background, I would like to dedicate myself to the important principle of Islamic finance, especially in Germany and Turkey.

The Islamic finance is an alternative to conventional finance. The Islamic finance is open to the whole humanity. By theirs sparing and careful action the Islamic finance could claim his market interest and need in the global economy since its founding´s in the 1970´s.

The world population exists to approximately 23% of Muslims. By Not-serving this population group by conventional bank houses and there special needs, further rising of Islamic finance houses becomes likely.

The economies in Islamic finance only allowed to trade and work with "halal" money. This means that the money from trade with forbidden substances is not "Helal”. As practical examples mostly alcohol, pork etc. are listed.

But what is the concrete meaning of “Helal”? “Helal” means to be in line with ALLAH and his Kuran and to avoid “Haram” ways. The Islamic regulations gives corridors for which is economically spoken the frame for doing business. These “Helal”-frames are delivering corridors not only for economy, it is also valid for the Law regulation, society and government for a region, a nation, a continent and a global union?

For the better understanding and the implementing in my working of “Islamic Finance” it is crucial to use only my knowledge of Islam and deflecting it on my economic research.

The first critic; understands the pure regulations of “Helal” chained out of the Kuran, because understanding of this times descents and transforming on our current time and case is a highly responsible, complex topic.

The second critic; there is no complete “Helal” system implemented for all areas of Life. If we look on the field of Law, we found the most developed area so far, but in my personal view, we have even here negative movements, mostly titled with the term “shariah”, which are leading humans on “Haram” ways.

I want to analyze the question of "helal" to pursue operational and real field experiences within finance world.


My research work is motivated by clear and complementary knowledge between theoretical arguments and opinions in relation to Islamic finance.

This will be undertaken by comparison of a non-Muslim country such as Germany with a Muslim country such as Turkey.

There are, as in the Christian and Jewish world, many opinion leaders in the Islamic world. The publications display a consensus towards various theoretical objectives in an economic context. In most cases, however, there is little or no evidence base.

These publications display a use of old arguments, each side focused solely on the demand side or the supply side of economics.

Real challenges and developments may begin, from the author’s perspective, only by practical, bottom up, analysis. The two essential components of the market were included in this study.

The problem that exists in the literature about facts and figures, for example, will be addressed through the creation of a separate factual basis.

The representative set of micro data will allow us to make a statistical interference, due to my work. This data is significant for a large number of people – for example, Muslims in Germany.

Furthermore, there is not a voice in the Muslim world, for example, defining the results of communication, benefits, advantages and disadvantages of Islamic finance, particularly in Germany or in Turkey.

The relevant questionnaire was distributed in an electronic form, with both residential and business customers involved. This result of the demand side has been reflected in workshops with banks.

The organization of this work is as follows. Initially, we started with an overview of research objectives. The research objectives are formulated into main objectives and secondary objectives (which are derived from the main objectives).

We are trying to get an idea of the demand for Islamic products looking to get market shares, even if the data is not readily available? (Visser, 2009)


If there is a demand for Islamic financial products, what are the indicators of choice? Are there Islamic financial products that only Muslims choose? What are the indicators of the distinction between Islamic and conventional banks?

In line with this background, I define the main objective of this thesis:

Is there a relationship between the number of Muslims in Germany and successful Islamic financial placement?

Derived Partial objectives

To achieve meaningful and differentiated models and measurable responses, we derive from the above target the following detailed issue positions. This method allows the author to achieve a quantitative and qualitative result range.

2.1.1.) Islamic finance institution, detail "Helal"

Can a "Helal" profit and loss participation system in a non-Muslim country

be profitable and sustainable?

In an interview the relevant and important cornerstones are illuminated by "insiders".


The leading objective of this research is to identify key market factors within the German market and, if necessary, by comparative with the Turkish market, in order to determine the relevance of Islamic finance. For this project, earlier empirical research results such as the IMF working paper from 2008 and empirical analysis from Islamic Banks regarding their financial stability are included.

A questionnaire distributed to private and business people has reached approximately 1,000 recipients in Germany. The responses include 73 from private individuals. The author has created a fact database with the feedback data from the electronic questionnaire. The first electronic distribution of the questionnaire did not receive satisfying return rates. In light of this, the interview form was chosen. This interview approach provided a substantially better answering rate and therefore a possible insight into the understanding of the external view has become possible. The demand indicators became available and their relevance to the definition of our problem has become clear. Our participants are engaged Muslims and mainly members in the Turkish, Islamic Organization DITIB.

In order to verify these outcomes, the author has provided the standard approach used in other areas. The choice of this approach was done openly, so that a legitimate statement to a gigantic number of people was possible. It was given in a political area, specifically one relation to classical elections.

Accordingly, an analogy has been chosen by "infratest Dimap", and we have found that the usual development of an "opinion picture" is usually done by a choice of 1,000 people as a controlling test for the German population of approximately 82 million human. If we now take our achieved comparative rate, this result gives us the impression that we can proceed to work with these results as usable.


The Islamic financial data are empirically tested in a survey. The necessary data generation was achieved using a standardized questionnaire. Results of the questionnaire are provided in section four; the questionnaire itself is attached in Appendix, Part 8.


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How "helal" can an Islamic Bank be? The Islamic Finance in Germany and Turkey
Extracts of Dissertation
( Mendel-Universität Brünn )
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islamic, bank, finance, germany, turkey, extracts, dissertation
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Mehmet Cosgun (Autor:in), 2014, How "helal" can an Islamic Bank be? The Islamic Finance in Germany and Turkey, München, GRIN Verlag,


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