Is Mit Ghamr A Role Model Or A Utopia? : New Findings

Banking is an old institution dates back to Ancient temple banking, according to some economic historians. Due to the existence of interest, which is intrinsic to the theory and practice of banking, Muslims did shy away from banking up until the 20th century. Via some specific reasons, the idea of establishing interest-free banks emerged in early 1900s. Mit Ghamr Savings Bank established in 1963 in Egypt is accepted to be the first example of interest-free Islamic banking in the world. However, more than half a century after its establishment, there is still limited information about it. The first studies on Mit Ghamr Savings Bank contain information about the general functioning and activities of the bank. However, due to the lack of available information, questions remain unanswered as to whether Mit Ghamr Savings Bank offers new insights for the existing Islamic banking practices. Thus, there is a need for a more detailed examination of the contemporary aspects of such a structure. Based on this need, this study has been written in the light of new data, gathered from the sources not known before. The study aims to provide new information about Mit Ghamr Savings Bank and examine this information using qualitative analysis techniques. The information is discussed under ten sub-headings based on ten key characteristics of Mit Ghamr Savings Bank compared with existing Islamic banking. The data obtained in the study provides important information about Mit Ghamr Bank's establishment, vision, activities and impact. The study clarifies from which aspects Mit Ghamr Savings Bank can be a good example for current Islamic banking, and which aspects of it would be more difficult to mimic today.