tag:blogger.com,1999:blog-8262753983660138508.post3122329632000497142..comments2013-01-29T19:10:41.612+08:00Comments on Peace Tracker...: Islamic BankingMurabbihttp://www.blogger.com/profile/12347610422592376573noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8262753983660138508.post-29587758772041904692013-01-29T19:10:41.612+08:002013-01-29T19:10:41.612+08:00I believe that the KFH case is quite isolated in n...I believe that the KFH case is quite isolated in nature. Essentially, the KFH is brave enough to venture into this territory (because their culture of running a banking institutions won't be a perfect match to that of a car dealership business). I'm pretty sure that banks would like to stick to their core business of being the 'money lending' institution. But who could have thought that an appliance company or a hardware store could "synergistically" run as both merchandise company and a 'bank' (money-lender institution) at the same time and thrive. Many have executed this model perfectly and creatively in the market nowadays. Merchandise companies for example are screened out from many banking act & central banks requirement due to the nature of their very core business. <br /><br />Those with management backgrounds would argue that this is simply the case of business focus vs. price packaging techniques. Essentially, that's the reality of how some businesses were being conducted. I would also argue that banks may start to rethink their diversification strategy from this spectrum. <br /><br />But at the end f the day, I would simply concede that banks are banks (banking institutions); not a business enterprise. Why should they jeopardize their risk exposure while they can 'make money' without risking any potential business failure. I wonder...Murabbihttps://www.blogger.com/profile/12347610422592376573noreply@blogger.comtag:blogger.com,1999:blog-8262753983660138508.post-45762845982660052272012-12-06T23:29:48.803+08:002012-12-06T23:29:48.803+08:00I wonder whether the KFH example you used is one t...I wonder whether the KFH example you used is one that will be copied, or if it will remain a relatively isolated case. What are your thoughts on the difference between a bank owning the car dealership versus partnering with the dealer and setting up a branch on site to provide financing for buyers. Does it diminish the benefit, or does it make the process more efficient through division of labor between one business with experience maintaining a dealer, and one with experience running a bank?Blake Goudhttps://www.blogger.com/profile/00269233925421947105noreply@blogger.com