THE COMPARISON OF THE SELECTED LOAN PRODUCTS IN THE CHOSEN CONVENTIONAL AND ISLAMIC BANK

One of the current discussed topics in the field of finances and development of financial market is also a topic of entering and possibilities of islamic banking into the countries with the conventional bank system. Regarding the fact that Islamic banking is gradually developing its products and its action not only in the area of the Persian Gulf, but also in Europe and other parts of the world, the awareness of Islamic banking sector and its services is expanding. Various conventional banks create the space for the special products and possibilities for the connection of conventional banking with the non-conventional and innovative one. The accelerating demand for Islamic banking directly influences the offer of services of this type of banking, i.e. the increase of number of branches with islamic principles resp. the increase of specialized branches focused on the products of Islamic banking in the world. Currently, more than 450 islamic financial institutions in more than 20 countries in the world offer products of Islamic banking. We have focused in this paper on the selected bank institutions and after the analysis of the product portfolio and particular bank chains we have chosen two specific subjects, Royal Bank of Scotland as the representative of the conventional system and Al Rajhi Bank as the subject of Islamic banking. The aim of this paper is then to process the comparative analysis of the particular conditions on the basis of loan portfolio of the chosen bank institutions for gaining the additional financial resources for living and common consumption in various bank systems. In the paper, there are formulated recommendations for practice on the basis of the results of the analysis that are formulated with taking into cosideration the discovered advantages and drawbacks of the particular types of bank loan products.