Financial Engineering and Its Role in the Growth and Development of Islamic Banking in Palestine

Abstract

The study aimed to identify the role of financial engineering in the growth and development of Islamic banking in Palestine; this is through the acknowledgment of the role of the Sharia Supervisory Board represented by the jurisprudential opinions on new Islamic products and tools. Moreover, the role of the regulations and instructions issued by the Palestine Monetary Authority (PMA) concerning Islamic banks. In addition to the impact of experience and employees’ training, as well as the impact of modern technology on the growth and development of Islamic banking in Palestine.The researcher used the analytical descriptive approach to reach conclusions and recommendations that can be generalized. The study population was employees working at Islamic banks in Palestine, who are (1049) employees. The sample for the study targeted 315 employees, which consists 30% of the total population. The tool used for the study was questionnaires distributed on the sample to collect preliminary data. The number of respondents was (258) employees which composes 81% of the sample.The study has reached many conclusions, and the following are the most important ones: The views of the Sharia Supervisory Board in the banks operating in Palestine play a major role in the growth and development of Islamic banking, while the other areas play a moderate role in the growth and development of Islamic banking in Palestine. The study recommended the need to spread the culture of electronic Islamic banking, and the need to update the regulations and instructions governing Islamic banking. In addition to the need for cooperation and coordination between the Sharia Supervisory Boards of the banks and the unified authority that is affiliated with the PMA.