DMFI 2013 Pasaran Dan Institusi Kewangan Islam Assignment 2026 | IIUM

DMFI2013 Assignment 

Title: Issues and Challenges in Islamic Financial Institutions (IFIs)

1. Introduction

In this chapter, students are required to provide an overview of Islamic Financial Institutions (IFIs). The introduction should explain:

• The concept and purpose of IFIs
• The principles of Shariah that govern Islamic finance
• The significance of IFIs in modern financial systems
• The rationale for studying the issues and challenges they face By end of this chapter – stating the aim and scope of the study.

2. Literature Review

Review existing research, journal articles, books, and credible reports. This chapter should cover:

2.1 Key Challenges in IFIs Discuss challenges related to:

• • Regulatory and Shariah governance (differences in standards, compliance complexity)
  • Market competition and product structuring
  • Economic conditions and liquidity constraints
  • Risk management, including Shariah non-compliance risk

2.2 Customer Understanding and Acceptance Review literature on:

• • Customer awareness of Islamic financial principles
  • Misconceptions between Islamic and conventional finance
  • Financial literacy levels
  • Barriers to product acceptance

2.3 Technology Use in IFIs

Examine challenges and opportunities involving:

• FinTech adoption and Shariah compliance
• Digitalization barriers
• Cybersecurity threats
• Benefits of AI, blockchain, and data analytics in Islamic finance All discussions must be supported with citations / references.

3. Discussion / Findings

This chapter should analyse and synthesize the issues identified in the literature. Students must:

• Compare challenges across different IFIs or countries
• Highlight the most critical issues
• Discuss how customer understanding affects product adoption
• Analyse the technology gap and potential improvements Provide a clear narrative supported by academic evidence.

4. Conclusion and Recommendations

This chapter summarises the key issues faced by IFIs and proposes practical recommendations.

Suggestions may include:

• Strengthening Shariah governance frameworks
• Improving public awareness and financial literacy
• Enhancing technological capabilities
• Developing standardized global Islamic finance regulations

Please ensure the conclusion aligns with the findings and objectives stated earlier.

5. References

All sources must be cited using the required academic citation style (APA / Harvard / MLA / Chicago—based on lecturer’s instructions). Sources should primarily be:

• Academic journals
• Books on Islamic finance
• Reports by central banks, IFSB, AAOIFI, or financial institutions

6. Report Format Requirements

• • Word count: 4,000–6,000 words (16-20 pages)
  • Font: Times New Roman, size 12
  • Spacing: 1.5
  • Margin: Standard (2.54 cm on all sides)
  • Sections must be properly labelled with consistent numbering
  • Include cover page, table of contents, and section headers

Instruction (Required):

Students must prepare a structured academic report following the chapters above, ensuring all content is supported by scholarly references, properly cited, and written in a formal research style suitable for a final-year dissertation.

SUBMISSION: 19 MARCH 2026

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