A Study On The Development Of Islamic Banking In Northwest China

Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law(Sharia) and provides financial services and financial instruments to clients. As a special form of traditional banking, Islamic banking not only satisfies the needs of Muslims to deal with daily financial business according to Islamic law, but also plays a significant role in economic activities. The distinction between Islamic banking and traditional banking lies in three aspects, which are also the major characteristics of Islamic banking. They are religious-binding, moral-binding and non-speculative. These three characteristics make Islamic banking form a unique system in business managing, financial instruments choosing, accounting, risk management and arrangement of regulations and supervision. Because of this unique system, Islamic banking possesses strong capability of anti-risk.Based on the deep research of theories of development of Islamic banking and its realistic forms, referring theories of financial development and through studying from experiences of Islamic banking in other states, this thesis analyzes the necessity and feasibility of development of Islamic banking in Northwest China, explores the issues of its development in this area, and puts forward the basic thoughts and practical path of development of Islamic banking in Northwest China.