The prospects and challenges for Islamic Banking operations in Chad : analysis of the Banking legal framework

Abstract

This research sought to identify the prospects and the challenges for Islamic banking operations in Chad through: (i) analysing the existing banking legal framework in the country to find out how possible for Islamic banking operation to be accommodated in the current banking system. (ii) examining the judicial system in the country to identify the appropriate dispute resolutions mechanism to settle Islamic banking dispute cases (iii) evaluating Chadian banking environment and to propose the suitable model for Shariah governance framework for Islamic banks to be adopted in the industry. Another primary focus of this research is to outline the general prospects and challenges for Islamic banking business in Chad. The significance of the study appears in the fact that it is a first of its kind to the best of the researcher’s knowledge, which examine the current Chadian legal framework for the purpose of finding a possible room for Islamic banking operations. For the study to achieve its objectives, a qualitative method of research is applied, supported by library based materials such as available documents concerning the subject matter, accumulation of the data from interviews conducted on bankers, judges, lawyers and Shariah scholars. The main findings from the research have established a standard norm that it is not impossible for Islamic banking operations to be inserted into the existing banking system in Chad. However, the study concluded that in order for Islamic banking to operate successfully and be presented as reliable and viable alternative to the conventional banking in chad, it is crucial that all the challenges cited are to be overcome or at least be minimized. Also, the recommendations outlined should be taken into consideration and put into immediate workable plans.