Islamic banks at the threshold of the third millennium

Before they can compete in the third millennium environment, today's Islamic banks need a considerable rethinking of their future policies and a serious effort to restructure themselves. Islamic finance offered by these banks, however, represents a new dimension in the banking industry. The Islamic financing modes, actually practiced by conventional banks in several countries, are finding their way to mainstream banking. These new modes of financing are now becoming a part of the international financial market. They will not only survive, but probably be enhanced by the globalization and deregulation of the banking industry, regardless of the specifically Islamic banks' ability to stand the forthcoming competition after regulatory and geographical barriers are torn down.