The Principles and Structure of the Islamic Financial System in the Light of Solutions Practiced in the Western World
DOI:
https://doi.org/10.15678/krem.842Keywords:
Islamic finance, Islamic financial system, Islamic finance principlesAbstract
In the subject literature one will encounter the point of view that the recent global financial crisis marks the end of an era in contemporary Western finance. In searching for new ways of developing financial systems, the question can be asked: What can be learnt from Islamic finance? The aim of this article is to try to answer this question by examining the principles of Islamic finance and the construction of the Islamic financial system. We find that, despite existing similarities, the main difference between Islamic finance and the European and American financial systems is that the former is founded on the religious law of Sharia, while, the common standard of Western countries is to maintain separation between church and state. There are also differences in the perception of interest and risk, which make the Islamic financial system complementary to, rather than a substitute for, Western financial systems.
Downloads
References
Abdulkader T. [2006], Interest in Islamic Economics. Understanding Riba, Routledge, Abingdon.
Abdul-Rahman Y. [2010], The Art of Islamic Banking and Finance. Tools and Techniques for Community-Based Banking, John Wiley & Sons, Hoboken.
Algaoud L., Lewis M. [2007], Islamic Critique of Conventional Financing [w:] Handbook of Islamic Banking, red. M. Hassan, M. Lewis, Edward Elgar, Cheltenham.
Al-Rifaee S. [2008], Islamic Banking. Myths and Facts, „Arab Insight", vol. 2, nr 2, Washington.
Archer S., Karim R. [2007], Accounting Standards for Islamic Financial Services [w:] Handbook of Islamic Banking, red. M. Hassan, M. Lewis, Edward Elgar, Cheltenham.
Ayub M. [2007], Understanding Islamic Finance, John Wiley & Sons, Chichester.
Bosworth B., Flaaen A. [2009], America's Financial Crisis: the End of an Era, The Brookings Institution, Paper to be presented at ADBI Conference: „Global Financial and Economic Crisis: Impacts, Lessons and Growth Rebalancing", 22-23 April 2009, Tokyo, http://www.brookings.edu/~/media/Files/rc/papers/2009/0414_financial_crisis_bosworth/0414_financial_crisis_bosworth.pdf.
El-Gamal M. [2006], Islamic Finance. Law, Economics and Practice, Cambridge University Press, New York.
Gafoor A. [2000], Islamic Banking and Finance. Another Approach, A.S. Noordeen, Kuala Lumpur.
Iqbal Z. [1997], Islamic Financial Systems, „Finance & Development", World Bank, Washington, June.
Jan Paweł II [1981], Laborem exercens, http://www.opoka.org.pl/biblioteka/W/WP/jan_pawel_ii/encykliki/laborem.html (dostęp: 30 listopada 2011 r.).
Katechizm Kościoła Katolickiego, http://www.katechizm.opoka.org.pl (dostęp: 30 listopada 2011 r.).
Khan M. [2005], Islamic Economics and Finance. A Glossary, Routledge, London.
Mirkakhor A., Zaidi I. [2007], Profit-and-loss Sharing Contracts in Islamic Finance [w:] Handbook of Islamic Banking, red. M. Hassan, M. Lewis, Edward Elgar, Cheltenham.
Obaidullah M. [2007], Securitization in Islam [w:] Handbook of Islamic Banking, red. M. Hassan, M. Lewis, Edward Elgar, Cheltenham.
Shanmugam B., Zahari Z. [2009], A Primer on Islamic Finance, The Research Foundation of CFA Institute.
Siddiqi M. [1994], Issues in Islamic Banking. Selected Papers, The Islamic Foundation, Leicester.
Usmani M. [2002], An Introduction to Islamic Finance, Kluwer Law International, Dordrecht.
Venardos A. [2005], Islamic Banking and Finance in South-East Asia. Its Development and Future, World Scientific, Singapore.
Zaher T., Hassan M. [2001], A Comparative Literature Survey of Islamic Finance and Banking, „Financial Markets, Institutions & Instruments", vol. 10, nr 4, November. DOI: https://doi.org/10.1111/1468-0416.00044
