Islamic Finance And The Global Financial Crisis PDF Download

The worldview of Islamic economics that emerged in the modern age in the 20th century AD after decolonisation of the Muslim world has witnessed practical manifestations particularly in the areas of banking and finance. Islamic banking and finance is now a part and parcel of the global finance being discussed and applied at national, multilateral and international levels. According to the Standard and Poor's report of 2009, assets of the top 500 Islamic banks expanded by 28.6 per cent, while many of the world's financial systems were deleveraging. As reported in the Global Islamic Finance Report, April 2012, Islamic finance developed during the past decade at an average rate of more than 30 percent per year against the traditional finance persistently caught up in one or the other crises. It is still tiny compared with the conventional finance, but it's a substantial number, all the more impressive given that Islamic financial institutions (IFIs) have only been back on the scene for three decades.Until about 1570, most of the lending in the world was based on profit share, says Mohamed Ariff, professor of finance at Bond University." After about 500 years, Islamic finance is “undergoing something of a renaissance”. Professors Kerrie Sadiq and Ann Black of the Queensland University of Technology wrote in a paper published in April this year, "Given such statistics,.. "it is suggested that Islamic finance...can contribute to global financial stability." It is projected by 2020, the Muslim world will be doing 50 per cent of its banking with Islamic institutions."The growth has been broad-based to encompass all major areas and sectors including commercial and investment banking, Takaful, corporate and public sector financing, fund management, money and capital markets, micro, SME and trust financing and last, but not the least, hedging techniques, credit risk securitization and other financial derivatives.