History of Islamic Banking

1) Mit Ghamr Bank in Egypt (1963-1967)

• Founder: Dr Ahmad al-Najjar
• At its peak, it has 9 branches with 250,00 depositors
• Activities: direct trade and industry, partnership with others
• Performance: successful via grass root participation but closed for [due to] political reason, which ranged from fear of Islamic fundamentalism to disagreements over how the bank should be regulated. The government come with many excuses on Islamic bank

2) Organisation of Islamic Countries (OIC) and the Islamic banking movement

• Dominated by Saudi Arabia
• Early seventies lead by King Faisal of Saudi Arabia
• Islamic banking held the promise of more control over Islamic world's political and economic destiny
• Third Islamic Conference in Jeddah (1972): to reform the monetary and financial system according to Islamic ethics