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Systematic study of sources of funds "Lloyds Islamic Bank London"

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Systematic study of sources of funds "Lloyds Islamic Bank London"

Chapter 1 – Introduction

1.1. Introduction:

This is quite clear in the concern of the progressive and advancement of Islamic banking in our social environment. This is the ascent role of the Islamic banking in which the costumer having much benefit as it is not obligated to pay the interest at all. Due to this policy clients are ease to utilize the services of bank and want to adhere with the cosy policies of the Islamic banking. Apart of the introduction of Islamic banking and its features here the mo0re concern is about the systematic structure and significant study of its sources particularly the Lloyds Islamic Bank of London. The bank needs fund whether it’s non Islamic or Islamic (Hasan, 2010). Based on any economical system (mixed, capitalism or Socialism) the funds are required in order to maintain the work and systemized the structure through more systematic way. The fund which bank accomplishes to earn is more likely to be pathetic in order to jettison the recession and let the steps out from the peril situation.

The fund is the backbone of any organization or institution. Without the funds and capital the institution becomes penalized and hampered. This is the core and fundamental of any business to run in an ease environment. Throughout the whole study the concern is about that how they find their funds and what are the exact sources specifically Lloyds Islamic Bank London. Through this process numerous benefits could be availed by economist and person directly or indirectly co-related with the activities and operational work with the Islamic Banking System (Hasan, 2010).

As the study reveals that we are going to approach the systematic study and maintenance of work through the funding process on one hand whilst on other hand it shows the importance of coherent connection with the institution generally. In general capital and equity are the sources of funds of Lloyds Islamic Banking, but it would further classify in mentioned below headings of prose. This is the process in which people are much prominent in order to maintain the work. This is the work through which people are much peculiar in order to systemize the work (Natalie Schoon, 2009).

The Islamic banking system would be more peculiar in order to deposit the money and save it without any interest and to take loan without any interest rate. The immaculate system of the interest paves the way to promote the society free from all poverty and other baleful activities regarding the dime. Throughout the system the utilization of the fund would be more prominent in order to maintain he system of society to give the information that how the Lloyds Islamic Bank amalgam with other institutions to maintain its work.

The prose also defines the systematic structure to approach the research question through the background and other programmed and organized work relating to sources of funding of Lloyds Islamic Bank of London (Natalie Schoon, 2009). This is the process through which not only clients are aware about the legitimate sources of funds of Islamic banking but on other hand the economist and higher authorities of related bank are also aware about the systematic structural work of a particular organization.

The Islamic organization would be the more prominent in European country to attract more clients in order to maintain the work there are more systematic work to know about the utilization of the funds of Lloyds bank and its collaboration of support of other institution to ascent its profitability to survive in the market (Asutay, 2010). To beat the competition of the general banking the Lloyds bank needs more clients to survive and more attraction and creating hyper to attract the clients whether Muslims or Christians or related with other religion without discrimination.

The prose along with the background study defines the aims and objectives and other significance of the study. This is the process through which people are much peculiar in order to maintain the business and work within it. Throughout the system, people are much peculiar in order to maintain the work and to systemize the structure of funding and its sources (Asutay, 2010).

1.2. Background:

The Journey of this banking system started in 1765 with a Birmingham bottom maker and an iron dealer. This dealing and customer relation paves the ground for the Islamic Banking in UK. This is the succession and accomplishment of the gaols that the core members of the Lloyds Islamic Banking would be more peculiar to provide the banking services according to prescribed laws of Islam in UK (Malik, Malik & Shah, 2010).

After almost 240 years the helping and aiding of the customers could not be ignored and this relationship would be more peculiar in order to maintain the work. This is the process through which people are much prominent in order to systemized the work and maintaining the progress in order to systematic structure of the work. Throughout the decades the systematic working with the costumers and their dealing the persons would be more peculiar in order to maintain the relation with the organization (Volk & Pudelko, 2010).

The study of utilization and role of Lloyds Banking would be more prominent in order to systemized the work in this concern, there are many problems which has been faced by the Islamic Backing especially Lloyds bank in order to maintain the system and make it position more prominent in order to systemized the work in Islamic banking system and routed its feet into the field of Islamic banking in European countries (Hoepner, Rammal & Rezec, 2011). The UK where the Islamic teaching is not so much prominent and the Islamic law is not is the state religion the establishment of the Islamic banking was the much problematic and basic problem to ascent the Islamic banking role in this concern.

1.3. Research Question:

Research question is the core and basic question on which whole research relies. Through this a researcher accomplishes its goals and provides the whole information in this concern. This is the basic questions which is a great concern and keen interest point of the researcher and he work on it to be more relevant. The research question of this research is as follows:

As Lloyds extends Islamic finance, how does it use its sources of funds?

This is simple but deep question having many aspects which will explore through study of this research work.

1.4. Aims and Objectives:

· To examine the information regarding the system of Lloyds Islamic Bank of London in particular and Islamic Banking System in general.

· To analyze the growth of Lloyds Islamic Banking system towards Islamic banking and finance.

· To systematically study the sources of using funds in Lloyds Islamic Bank of UK.

1.5. Scope of the Study:

The scope of this aforementioned topic is broadening in a scene that it embrace the whole phenomenon of Islamic Banking and its procedural work to raising the funds. This is the a broad arena of economical operational study. This provides much information not only the general clients but also the high profile economists and authorities relating to Lloyds Islamic Bank London and in general paves the way in to provide the basic and fundamental examples to the clients and customers relating to specific banking system.

The scope of the study is broaden and having vast arena which embrace the whole banking system and comparatively study of the Islamic banking with general banking operation and activities and utilization of funds. However it also declared that how the Lloyds bank extends its role in the marketing way of the society. This is the process through which people are much prominent to use this research paper to take out the finding and easily aware about what the research wants to convey and penetrates into the minds of the readers.

1.6. Limitation of Study:

The study does not provide regarding the implication and utilization of these funds that is considered as the half study. This type of study is not so much useful in which only one aspect has been defined in limited word count. The study also provides the benefit to the competitors of the Lloyds Islamic Bank London. Some sources might be concealed with the observation of the newly initiated business policy makers, and this study could paves their way to stands before Lloyds Islamic Banking.

To provide the information regarding the utilization of the funds of Lloyd’s Islamic banking system and maintain the work in order to make the system more prominent, the competent are much benefited to gather the information ad used these into the negative sense. However it is much difficult to know about the exact sources and its utilization because the company’s managers conceal this information in order to maintain the work. this is the process through which people are much save themselves to aware about the results.

1.7. Significance of the Study:

The study provides the wide appeal and knowledge throughout the systematic approach and maintenance of work in order to raising the funds. This is the process through which people are much peculiar in order to manage their work and work more systematically. Through this study the customer which wants to adhere with the policies and law of Islam would be so managed and organized to know that whether the sources of funds of the specific banking is legitimate or not? This is the process through which people are much peculiar in order to maintain the work.

Secondly the study also reveals the systematic way to approach towards the sources of funds of Lloyds Islamic Bank of London. This is the study which pregnant the systematic structure in order to maintain the work and maintain the policies of the system. Throughout the system people are much peculiar in order to maintain the work in this concern of study.

Thirdly this is the process which provides full information to the people who are interested in investment process. This provision of the awareness program paves the way and provides the plate-form to provide the exact information about the relation of clients/ customers in ascent the funds and provision of the system. This study also declared the sources of funds and gives awareness to people about the work and its processes generally in general Islamic banking and particularly Lloyd Islamic banking.

The utilization of the funds provides the information in order to aware the people who are especially concerning the Islamic law and following the Islamic banking into the systematic approach towards the Islamic way in its capitalist attitude. This information paves the way for the bank Lloyds UK to maintain its profitability and attraction of more clients and adherence abundance of the customers. This is the work through which people know about the system and establishment of banking system.

1.8. Problem Statement:

Islamic Banking now a days in modern era where all the marketing focus depends on the banking system is extended. The importance of Islamic banking especially in Islamic world could not be ignored. Here the focused Islamic bank and focused country is Lloyds Islamic Bank and UK respectively. To provide the information could be benefitted for the person who are connected with the competency of the market of Islamic banking. This could be the core problem to systemize the work in this research. The problem that is most authentic that if we provide all the funding information and its utilization of specific banking then the competitors would be in benefit to know the information about the system. This is the provision of the system which makes the one organization into the peril and benefited other organizations and institutions to enter into the market with having core knowledge about the utilization of the funding in order to route their foot in the ground level.

The let the cat out from the bag regarding the utilization of funding might be stay away the clients from the Islamic Banking. Might be there are some work through which Islamic Banking done which is directly or indirectly prohibited in Islamic prescribed law would make the organization into hot water.

Chapter 2 - Literature Review

2.1. Islamic Banking and its General Features:

Islamic Banking is the system of banking that allows working in ease atmosphere in relation with the Islamic laws and procedures. This is the system that against the conventional banking and traditional way of banking that leads towards the capitalism. It is purely depends on the Islamic system that includes the way to amalgam the efforts to spreads the economic status and system of Islam.

The interest free economic system promotes the poorer to be rich and provides the exact distribution of money by using different means. With the asset of US$ 822 billion 300 Islamic Bank in 2009 are being played an indispensible role in social environment to extant and prints their ways to attract the general mob (laymen) and achieved to beat the competency of the market.

The business and utilization of funds in Islamic banking are supposed o be legitimate and interest free, it following all the rules of Sharia. The musharaka and mudaraba (profit and loss) would be share by the investors / depositors. It has traced back from the early eighth century but the role of Islamic banking is more prominent in late 20th century. Malaysia in an Islamic world beats all nations in Islamic world. But the role of some banks in western countries also played more critical role to provoke Muslims to adhere with economic policies of Islam.

2.2. The System of Lloyds Bank:

The procedure that would be the part and maintain the working criteria to generalize the Islamic banking system is prominent to find out the awareness in social structure of UK. The way through which the expansion of the Lloyds Islamic bank would be possible, in order to expend the system, the people are much peculiar in order to utilize the funds with the high capabilities and maintain their work. This is the product through which the system would be more systemized. The awareness about the Lloyds Islamic Banking would be the only to minimize the factor and to maintain the work throughout the structure,

2.3. Growth of Lloyds Islamic Bank in the Traditional Banking System:

The Lloyds Islamic Bank would be more prominent in order to make the system more scientific and more systematic towards the traditional way of the banking system. This is the process through which people are much prominent to make the system more authentic throughout the working procedure. The Muslims of the Europe also having keen interest and showing their willing to let the expansion of the European country more against the customarary banking system and network. In this the billions of dollars would be annually splashing to promote the policies and embrace the whole Europe.

2.4. Role of Lloyds Islamic Banking in Expansion of Islamic Banking:

Role of the Lloyds Islamic Banking in order to establish the Islamic banking system in UK is adorable and could not be denied. This is the bank that paves the way for the Islamic economic system and maintains the work that provides the system in this concern. The Islamic economic system is more different then communism and capitalism. It has its own criteria and procedures. The Lloyds Islamic banking would be more prominent in order to maintain the work to systemize the structure in this concern. The system includes the way through which people are engaging the system toward the promotion of Islamic economy.

Lloyds Islamic bank at the first time in Europe provides the wholesome structure to ease those who literary want facilities according to the Islamic law and procedure. The system claimed its appropriateness and maintain it structure according to the culture and civilization of Islam.

2.5. Lloyds Islamic Banking against Conventional Banking in Using of Funds:

2.5.1.Basic Investment Vehicles:

The investment through the Islamic bank is much immaculate and pure in order to follow the religious prospect. This Lloyds Islamic Bank UK also having a keen interest to not invest in such a way to get their feet adheres into the un Islamic way (Ercanbrack, 2011). This is the common feature of Lloyds Islamic Banking UK. Through this people are much peculiar to save their deposit in Islamic banks, especially in Lloyds Islamic Bank UK. Through this policies bank is following the most Islamic way to make its activities more immaculate and more systematic to follow the principle of Islam (Ercanbrack, 2011).

This is also considered as one of the main different between the Lloyds Islamic Banking system and conventional Banking system. If Lloyds Bank put its feet into the swamp of un Islamic materials then it is entirely profit less step of this specific bank. This is the core different that distinguish it from the other capabilities (Ercanbrack, 2011).

Throughout the process in which people are much authentic in order to maintain the work and to amalgam the system as Lloyds Islamic Banking is much peculiar to avoid investing in those companies which involve in lending, gambling or the production of alcohol, tobacco, weaponry or pornography.

In the Lloyds bank the only person can invest who is willing to invest their money through Islamic procedure through the basic condition of sharing loss as well (Ercanbrack, 2011).

2.5.2. Trade:

The company is utilizing its financial efforts in order to maintain the work and to get the profit. Lloyds bank of UK is establishing the data in order to maintain their profitability through Islamic procedure and way to invest its funds into national and international trade (Pistrui & Fahed-Sreih, 2010). Through this process Lloyds Islamic Bank earns its money and avail its clients. This procedure is much similar in order to maintain the work and maintain the status of the bank as fruit of prosperity. This is the procedure through which people are much aware about the system and maintain the systematic structure to be more organized.

The Lloyds bank through investing its money into the national and international trade activities could attain the target to evaluate the system of the profitability and attain the level of reputation. This is the process through which people are much acknowledges about the investment product of the system (Pistrui & Fahed-Sreih, 2010).

Throughout the system the Lloyds Islamic Bank would be more peculiar in order to maintain the system. The trade process of Islamic Banking is not conventional but as aforementioned that it is based on the level of authenticity and maintaining of work (Pistrui & Fahed-Sreih, 2010).

Lloyds Islamic Banking is much peculiar in order to maintain the system and in order to work me this concern. Throughout the level people are much systematic in order to maintain the role of the trade the systematic work is also introduced to level the way of trade. The trade activities is surely without interest and any other activities which is un Islamic. This is the system through which people are much peculiar to maintain the work in order to systemize the work in operational trade activities (Pistrui & Fahed-Sreih, 2010).

Lloyds Islamic Bank UK provides the path of its investors to invest in a manner to maintain the work and to amalgam the activities and be a partner (equally in profit and loss). People who are clients and deposit their money into the bank would be availing this opportunity. However in conventional banking the loss sharing is not burdened on the shoulders of the customers (Pistrui & Fahed-Sreih, 2010).

There are also some elements which must be the part of the literature review as concern with the trade activities:

2.5.3. Islamic Following of Trade:

Islamic following must be under consideration in order to maintain the work to invest in those trades which is Islamic. As in other words those business could not be avail the investment of the Lloyds Islamic Banking which is indulge in any non Islamic activities (Pistrui & Fahed-Sreih, 2010). These are the system through which people are much prominent in order to rely on it. The systematic approach would be more successfully done if the matter would be resolved comparatively. This is the system through which people are more prominent and more authentic in order to systemize the work. This is the process through which all clients are engaged in Islamic way of investing the money into trade system (Pistrui & Fahed-Sreih, 2010).

This is the process in which people are more peculiar in order to systemize the work through an Islamic manner. We are here to trace the systematic structure to know about the system and its advantages to know the utilization of the fund specifically the Lloyds Islamic Bank UK. This is the great part here we are describing the utilization of the funds by the Lloyds Islamic Bank (Pistrui & Fahed-Sreih, 2010). This is the system through which researcher are much aware about the system of the biggest investment sector and providing the funds in this concern this is the process through which the depositor came to know that their money where invest in the marketing values and either used in righteous way or not.

2.5.4. Interest Free Trade:

The trade would be interest free in order to maintain the system more organized. This is the systematic approach to know exactly about the financial system of the bank. To trace the institutional activities of the investing and its operation the managers and leaders are introducing the interest free banking. This is the process through which people are much peculiar to know that their profit is not mix with the amount of the interest (Pistrui & Fahed-Sreih, 2010).

The Lloyds Islamic Banking also provides the interest free trade activities and maintains the operations. This is the process through which the connection with the banking activities would be maintained (Pistrui & Fahed-Sreih, 2010). This is the system through which the work would be maintained to do in order to systemize the working. The way to invest and get profit and share with the customers/ investors or clients would be interest free.

2.5.5. Legitimate Trade:

The trade would be legal in which Lloyds bank would invest. This is also considered as one of the pestle forces and maintains the system in order to work within it. If the Lloyds bank repeated its way to invest in the organization which is so famous to do illegal business, so ethically, socially, and after all according to the Islamic laws it is much prominent (Pistrui & Fahed-Sreih, 2010). It would ultimately affects on the clients’ power and working force of the institution.

In other words it is sure that if it is declared and revealed that the bank indulge with the collaboration business activity with the institution that is involve in any activity which is much systemized and paves the way in order to maintain the work then it is noticed that people are much peculiar in order to systemized, the structure. The maintenance of the work is much systemized to know about the system and acknowledge that which one is the systematic in order to maintain the work (Pistrui & Fahed-Sreih, 2010). This is the system through which people are much prominent to assure their engagement with the persons who are much peculiar in order to make the trade of Lloyds with the legitimate firms across the world.

This is the process in which provision of the systematic structure through which people are much peculiar in order to maintain the work. The litigated process of the firm and maintain the work in order to maintain the work.

2.5.6. Minimizing Risk Factor in Trade:

The Lloyds company which maintain the work which is much prominent in order to make the system more organized. The Lloyds Bank also run on the strategy on which people are much prominent in order to systemize the work. This is the process through which people are much prominent in order to maintain the work (Pistrui & Fahed-Sreih, 2010). The way through which makes the system more prominent. In this process people are much prominent in order to make the system and through this minimizing risk. Due to the system as it is more systematic approach in order to maintain the work and minimizing the risk factors.

It is more authentic in order to maintain the work and in order to systemize through investing the money in those businesses which having less risk factors. Because, it wants to provide ease and facilitate to its clients and customers. If it takes money and all the time invests in business having high rate of risk then the finance would be more disturbed and could not attain the level of what the bank wants to survive that is profitability (Pistrui & Fahed-Sreih, 2010).

2.5.7. Sharing Trade:

The Lloyds bank does not provide the opportunity of fixed profit level. It is against the interest and what the Islam also prohibits this activities. This is the system through which people are much benefited who are connected with the Islamic laws (Decker & Sale, 2010). There are much systematic that could maintain the work within the organization. This is the process in which people are much systematic to introduce the work level, as interest is prohibited and sin activity in Islam.

In this matters the systematic trade would be under the consideration of Lloyds Islamic Bank UK, this is the way through which clients/ customers are the partner in profit and loss statement. It also makes the system more profitable as the Lloyds bank is concern and as the system of matters is concern. This is the way through which the system is much prominent in order to maintain the work within an organization. If there would be loss the client bears the loss, but in this Lloyds banking system there would be less chances in this concern and less chances to make the clients into hot water (Decker & Sale, 2010). Through this profitability of the Lloyds Islamic Bank UK and reputed dealing with the customers paves the way into non Islamic country to promote the Islamic system and way which is immaculate and pure then all the system of banking running into world.

The conventional manner of general banking provides the status to maintain the work within the system to share the system in more haphazard manner (Decker & Sale, 2010). This is the process through which people are much peculiar in order to maintain the system and to maintain the work more prominent. The profit on the fixed deposits could not be fixed as it is fixed in general banking system. It is much systemized to maintain the work and systemized the structural way of sharing the partners.

2.5.8. Loans:

To provide the loans is one of the fundamental of the banking system. It provides the facilities in order to make the system more prominent. Throughout the process people are much capable in order to maintain the work to harmonizing their relation with the company (Decker & Sale, 2010). The people who are connected with the Lloyds Islamic Banking are much facilitate with the loans and payments in urgent bases. Due to the system the banking provides the way to pave the way to provide the organized system in order to make the way more in favour and connect the criteria with the people. There are many ways of Lloyds Islamic Bank to provide the funds. But this is quite clear that dealing with funds is much more systematic and prominent to maintain the work more properly. Now the realization of the work regarding the loans would be entirely different from the customary way of dealing in loans (Decker & Sale, 2010). This is the progressive work with let the clients to connect with this specific banking. This working on the phenomenon as a friend in need is a friend in deed.

This is one of the ways which helps the system in order to maintain the rolling of the funds. The funds are gathered by the deposits and other realization work with the system. Throughout the structure people are much systemized in order to work more perfectly (Decker & Sale, 2010). This is the step of the bank which makes the system more perfect in order to systemize the work and in order to make the work more reliable. Throughout the system people are much is in connection of the bank. Throughout the way we are going to make the system more reliable and through this the Lloyds Islamic banking, are much prominent to work in this preferences to utilize their funds. There are some steps which make the loan procedure reliable and utilize the fund with minimization of the risk factor. This interest free loan in an Islamic Banking system is known as the Qurd e Hasna (Decker & Sale, 2010).

2.6. Documentation:

The utilization of all the funds bond in the subject of legal documentation in the system. Throughout the work the all the system would be under the peculiarity in order to maintain the work within this criteria. The fiscal policies of the Lloyds Islamic Banking would be more prominent in order to maintain the work (Decker & Sale, 2010). This is the process through which the system would be more reliable to done in this concern. To lessen down the risk of fraud the way is much peculiar in order to maintain the system and to make the way. The all the procedures of loan would be more bonding with the legal documentations and legal frame work.

2.7. Systemized Structure:

Some mortgages would also be taken by the Lloyds Islamic Banking in order to make the system and in order to maintain it. Due to this prominence attitude of the banking structure the people are much prominent to work in it. The structural way to minimize the risk factors and assurance of returning of the payment from the customers the system would be more peculiar to take some surety things from the clients to propagate the way to challenge the system (Decker & Sale, 2010).

Legitimate methods are comprises the trade, industry or budget procedures from foreign and domestic sources. Lloyds Bank designed diversified investment portfolios and instruments that generate profit with the required liquidity to maximise its profits. It is highly invested in much business whether a domestic or foreign all are structured with the systematic work to generate the profit and using its funds to more organized (Decker & Sale, 2010).

Musharakah and Mudarabah (profit and loss partnership) can be used in order to initiate the short-term and long-term project financing, import and export, capital financing and financing of single transaction. The houses transport, machinery, etc. are much more considered a fixed asset as a source and against those they used the payments and utilize it more generate (Decker & Sale, 2010).

2.8. Good-will of the Lloyds to Defeat the Competency:

There are many factors which contribute in order to make the system more organized and more systematic. Throughout the process people are much peculiar to maintain the system with give them preference amongst all the institution in the market. This is the system by which people are prominent to work with more reliability and systematic work. The Lloyds Islamic Banking would be more systemized to work and would maintain the relation with the client to ascent the harmonizing, profitability and external environment of the organization (Hoepner, Rammal & Rezec, 2011).

The Lloyds Islamic Banking would increase its role in order to maintain the work and in order to make the good relation with their clients. Through this they increase the profitability and reputation of the firm and break the market competency of the market; this is the cultural way to provide the system in order to work and to maintain the system more perfectly and appropriately. To provide the system it is reliable to maintain the work and to maintain the progress (Hoepner, Rammal & Rezec, 2011).

Lloyds Islamic Bank would promotes its policies throughout the way in which people are much systemized and worked a lot to stabilize the reputation of the company. The working force is most genius in order to sustain all the system and let it progress more rapidly and more systematic. This also leads to expand progress and named expansion of the firm within domestic as well as foreign markets (Hoepner, Rammal & Rezec, 2011).

2.9. Import and Export:

The import and export is the core function of the Lloyds bank to utilize the funds and to reach on the top of the index. This is the systematic work to maintain the structure and to maintain the capacity of the work. This is the progress through which Lloyds Islamic Bank give chance to adhere the intercontinental clients with other parties. Due to this proclaimed procedures people are much systemized to work and to maintain the progress through establish the relation with international clients (Hoepner, Rammal & Rezec, 2011).

The import and export is one of the major fiscal activities of Lloyds Islamic Bank to utilize its funds and to expand its operation across the world. This is utmost important programmed structured way to enhance the rolling of fund and to generate the profit and ultimately results to accomplish the upbringing reputation and fame of an institution.

To eradicate the risk Lloyds Islamic Bank always put their hands into the swamp of risky trade and also considered the view which is most prominent to having the Islamic way of banking (Hoepner, Rammal & Rezec, 2011). The procedure and proclaimed is much prominent in order to maintain the work with the core essence of the systematic work and to maintain the reliability and harmonizing of relation.

The epitome of the work is that the import and export provides the reputation of firm more systematic and more organized to reach on the dream which has been set. This is the progressive way through which the people are more willing to connect with the trade activity (Hoepner, Rammal & Rezec, 2011).

2.10. Shares and Stakeholder of Companies:

Lloyds Islamic Banking also proclaimed the way to be a shareholder to share the funds in the stock market of UK and also in other western nations. It has a keen interest to amalgam the relation which maintains the work in order to invest in the sharing and investing its money into the major companies. This is the process through which people are much share and having the keen interest in order to invest in the business of different companies (Hoepner, Rammal & Rezec, 2011).

But the noticeable thing here which should be under focused to conduct the research that all that businesses in which Lloyds Islamic Bank invest would be according to the Islamic procedure and accept the ways and follows the guide line which Islam provides. For an instance the Lloyds Islamic Bank does not ever invest the alcoholic beverage companies through which they indulge and be a partner in wrong business according to Islam and make the ties tense between customers.

The stock exchange market of the particular bank would be much high to utilize the funds in international as well as national market. Due to the high contact, capacity and reputation it maintains its work insight of general mob. In other words this is the source of UK people to invest in it according to follow the actual Islamic fiscal formula (Hoepner, Rammal & Rezec, 2011).

2.11. Orientation and development to Extent the Role:

The HRM of Lloyds Islamic Bank would be prominent to pay attention to the employees on it priority. Due to the ascent role people are much peculiar to make the connection and sometimes feel comfort and reliable to connect with this specific institution. In the introduction of orientation and development program we have to produce some importance within the firm. The utmost and foremost importance is to realize the connection with clients and makes the objective effectively accomplished within given span of time (Hoepner, Rammal & Rezec, 2011).

The Human resources Management of the institution would also maintain it status to make its staffs up to date and to maintain the work more reliable in order to systemize the structure and to make the internal and external structure of the given bank more organized. This is one of the keen interests and considerations of the HRM of Lloyds Islamic Bank UK; this development program does not only promote the policies of the institution but also enable it to let out from the dangerous situation and smoothly tackle the obstacles which institution faces. Simultaneously it also provides the information in order to maintain the work and in order to systemize the work within and institution. It does not only aid in better connection and binding with the principle clients but also work as a profit generator and reputation builder. This much helps it to ascent its role in the competency of tradition banking market in UK (Hoepner, Rammal & Rezec, 2011).

2.12. To meet the expenses:

The bill of the miss-selling payment protection of the Lloyds’ bank protected insurance crashed by £700m, the emergence of the news that industry down to earth and dragged deeper into a separate rate scandal, Barclays with a £290m.

It is also notices that the PPI Slumps to £439m loss but it was effectively covered by the Lloyds Management. Lloyd’s management claimed that the complaints lodged on behalf customer who never took out a policy from the bank. The bank management has 1000 staffs dealing with these erroneous complaints.

The expense is comparatively high as it is the more organized and much profiled institution of UK. This domestic institution that takes much foreign funds inside the UK’s market would be prominent to fall in such expensive activities. The funds which have been deposited by the clients would also be used to meet the expenses which Lloyds Islamic Bank would have to face. There are many expenses and a list of expenses is also in closed focused of the managerial members to overcome rapidly to assure the profitability (Volk & Pudelko, 2010). Due to highly recommended way to provide the system in order to make the work more prominent the fund would be splash in this manner as well.

From the expense of the daily bases to the depreciation of the assets all are being utilized by the funds deposited by the clients in the accounts of Lloyds Islamic Bank. The way out is nothing but to meet the expenses at all. People would be more reliable in order to make the reason more prominent to face these challenges (WARSAME, 2009).

The funds are being utilized in this section. But this is not any investment or any type of work which maintain the profitability but it is to secure the profit and reputation of the Lloyds Islamic Bank UK. For an instance the funds are being used in order to develop the people and in order to make the potential staffs along with the other strategic marketing to stabilize the institution on its peak of profitability and assurance of building reputation against the marketing competition (AbdulRahman, 2009).

2.13. Marketing and other Strategic Management:

The marketing is the core and essence of any business, without marketing any business can survive or stabilize. Due to the capabilities and maintenance of the work people are much capable of having the things more reliable in order to make the company / organization promoted. Lloyds Islamic Bank UK splash its much funds to make the marketing system more organized to attract the customers. If it halts this utilization then the system will become down to earth. This makes live in the soul of Lloyds Islamic Bank of UK (AbdulRahman, 2009).

Other strategic matters like to make the policies and to ascent the expansion also require much funding. The budget is using here in this concern. Like, to implement what the HRM decided to do with the institution. Other budget would also expend to change the management if needed (Malik, Malik & Shah, 2010).

This strategic change leads the foundation of success of the specific institution. This also proclaimed the material to make the organization into the peak of zenith and some funds are being used in accountability and proper implementation process of the institution. This is the process in which people are much peculiar to maintain the work and to maintain the system (Malik, Malik & Shah, 2010).

2.14. Beat the Competency of Market:

What the Lloyds Islamic Bank UK does? It does have a keen interest in order to make the system more prominent and more authentic to keeping its eyes to other marketing strategies. It does make the sense in order to maintain its market through making the anti policies. It also engaged to manage the policies which is entirely makes it to survive in market and keeps its marketing position up to date. This is the progressive work which makes the system more reliable and more authentic. This is the authentic reason in which Lloyds Islamic Bank splash its money in this concern (Bassens, Derudder & Witlox, 2011).

The Lloyds Islamic Bank having its keen consideration to know the policies and strategies of other banking structure whether Islamic or customary. It maintains its strategies and policies and emerge it rules accordingly to beat the competency of market. For this it also much splash money to fulfil this requirement to survive. This utilization of money also playing an indispensible role in order to maintain its status and let it allows to extent more (Bassens, Derudder & Witlox, 2011).

Chapter 3 – Research Methodology

3.1. Research Philosophy:

It is very necessary to understand the research philosophy and research paradigm. It is better defined as the research background, research knowledge and way. This defines that what is the way through which the researcher concluded its research work? It defines the whole mechanism and track of study. The study showed the structure and the direction of the whole research that allowed the researcher to focus the path in a right way.

There were three core objectives that are much propagates the system.

3.1.1. Positivism:The concept was more realistic to approach the system in this concern. The way through that people was much prominent in order to maintain the work. This is the process through which researcher were doing the scientific approach, scientist and their viewpoint to evaluate social world. It more focuses on the largest social sample instead of focusing.

3.1.2. Interpretivism:interpretivism could be referred as the construction and management research. In this method researcher included its ideas and observations and creates the philosophy to entertain the system. In this process the sampling would be limited and small size.3.1.3. Realism:this research philosophy mainly concentrated the process through which the system would be more peculiar in order to maintain the work. The research process would be more procreated in order to maintain the work in this concern. The research methodology refers to the core consideration mostly based on the reality, beliefs and other values.

3.1.4. Preferred Methodology and Reasons:

The referred methodology was positivism and it maintained the system to including the systematic structure more powerful. This is the process through that researcher were more prominent in order to make the system more systemized to do the research. Because the topic is on specific Islamic Banking, so the Islamic Laws so called Shariah was applied here. This could not be taken by the own observation.

3.2. Research Design

This research was exploratory, as exploratory study helped to better comprehend the nature of the problem. In this research explore the information that was already being the part of the Lloyds Islamic Bank UK. The study was based on the qualitative data. The reason to choosing the qualitative study was that the research was based on the qualitative matters in which people were much peculiar in order to maintain the system. This Islamic banking was study more relating to the prescribed laws and procedure set by Islam that were the part of the research that is why research was more qualitative. This was the way through which people were much peculiar in order to make the study more organized.

It was a field study and was conductive in a non-contrived setting. No interference or manipulation was done so as to identify the variables accurately. The study which making the system more organized was to maintain the system more properly.

It was a cross-sectional study as data collection is only done once. The time taken in completion of the study was more in order to maintain the study more organized. Composing of data was take the more time and was more prominent in order to take the system more perfectly. The time frame–work that was more work systematically to realize the system. Throughout the system people were much peculiar in order to systemize the work.

The objective of this research was to find out the expansion and utilization of the funds in the Lloyds Islamic Bank UK, the objective was cleared and maintained the work through the progressive way. This was the programmed way to produce the work in order to maintain it rapidly.

3.3. Data Collection Method

Data for this research was collected from both primary and secondary resources. Data was gathered by conducting interviews, and preparing structured and unstructured questionnaires.

What are the exact definitions of the primary and secondary sources are discussed below,

3.3.1. Primary Sources:

The creation of the documents and the physical objects that were written or created during the span of time under the study was known as primary sources. The primary sources were the sources through which people were much peculiar in order to collect the data from the sources which were used as a raw material in this concern. Some types of primary sources include:

· Document provided the original information such as diaries, speeches, manuscripts, letters, interviews, news film footage, autobiographies, official records 

· CREATIVE/ literary WORKS: Poetry, drama, novels, music, art 

3.3.2. Secondary Sources:

It was the interpretation and analyzing the primary sources. When a researcher take the system under considered then the research was under the consideration and maintenance. The commentaries and critical analyzing of the primary sources become the secondary in its nature.

· Publications: Textbooks, magazine articles, histories, criticisms, commentaries, encyclopedias 

Examples of secondary sources are:

· A journal/magazine article which interprets or reviews previous findings 

· A historical textbook 

· A book about the causes of WW1

3.3.3. Reasons of Choosing Primary Source of Data:

As the topic was relating with the Islamic banking system and more specific to the general point of view, this was the process through which people was much reliable in order to maintain the system. The primary source would be chose as it was the more reliable source to organized the data in which own observations and general public views were not accepted. This was the process through which people were much peculiar in order to maintain the work and to organized the study.

3.4. Respondents of Study

· Customers

· General Public

· Involved Companies

3.5. Instruments of Primary sources

Different instruments of data collection were being used to get the current and relevant information regarding the issue. Primary data was collected by conducting survey through interviews and questionnaires.

3.5.1. Questionnaire

Questionnaires were an inexpensive way to gather data from a potentially large number of respondents. Often they were the only feasible way to reach a number of reviewers large enough to allow statistically analysis of the results. A well-designed questionnaire that was used effectively could gather information on both the overall performance of the test system as well as information on specific components of the system. If the questionnaire includes demographic questions on the participants, they could be used to correlate performance and satisfaction with the test system among different groups of users.

3.5.2. Interview

Interviews: A selection procedure designed to predict future job performance on the basis of applicants' oral responses to oral inquiries. It was useful for determining if the applicant has requisite communicative or social skills which may be necessary for the job. The interview may be modified as needed to gather important information. To take the interview from the selected celebrities aided us to program the research report and to maintain the work throughout the study. Interview was the basic way through which the system was more prominent to make the system more reliable and peculiar. The way through that people was making their study more organized and more systematic.

3.6. Sampling:

Sampling was the phenomenon in which the researcher takes the general mob into consideration and taken out the result what he wants to explore. Because it is impossible to manage the result which is wholly based on the system and maintain the work. This is the process through which people were much peculiar to appropriate their findings and results. The method of sampling here used is Probability sampling and more specifically the Simple Random Sample method has been used.

3.7. Data analysis Technique

Data was analyzed by means of frequency distribution and percentage analysis of comparisons between results. The data was treated statistically and the results were presented in the form of tables, and bar/pie-charts. The exactly and appropriately analysed data required to amalgam the situation and marinating the work through the structural way to systemize the work. The treatment of the data would realize the systematic structure of the study. This is the part through which the researcher would maintain the study more organized to reveal the chart and drafts in this session.

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