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Conventional financing looks forward to profit through interest payments and makes the beneficiary completely liable for any risk where Islamic Banking takes a similar approach,

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Conventional financing looks forward to profit through interest payments and makes the beneficiary completely liable for any risk where Islamic Banking takes a similar approach, too. Select one: True False Recognizing the interest free banking at nearly the same time and possessing similar backgrounds, Turkey and Malaysia currently retain nearly the same Islamic banking market shares in their domestic countries. Select one: True False The liquidity and cash management performance of short-term financing structure should not be expected from the sector which is expected to develop with long-term partnerships. For this reason, there should be such legal arrangements that the ratios used to measure the performance of banks in the sector need to be differentiated so that a hybrid model is ensured in which the debt and partnership model can be applied together. Select one: O True False Please match the related stakeholders' expectations and approaches considering why long term partnership based financing products cannot be implemented widely. They are reluctant to be constantly monitored. Fixed financing costs are preferred as in debt based financing model. They do not want to include banks to their daily business management Due to its ease in risk management, they are more tend to provide short-term financing to customers. In deposit side, they expect same ratios offered by conventional banks. They also prefer to get monthly profit payment. The short-term profit demand of customers lead the increase in usage of debt based financing instead of partnership based financing. Corporate/Entrepreneur Customers Retail Customers Shareholders/Bank Management Allocation of funds in Islamic Banking is based on expected profitability/productivity of the projects in question, unlike the conventional system which bases allocation on the creditworthiness and wealth of the project-sponsors. This is one of the factors that renders Islamic Banks more efficient compared to their conventional counterparts. Select one: DG True False

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