Risk sharing in corporate and public finance: the contribution of Islamic finance
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The risk sharing principles of Islamic finance as embodied in mudarabah and musharakah contracts have been extensively used throughout history. For example, the maritime trades of 14th century Italian city-states with Middle East and Asia were financed by ‘sea loans' and ‘commenda’. Historians have traced the development of commenda to borrowing from the concept of mudarabah used by Muslims (Udovitch, 1962; 1967; 1970; Mirakhor, 2003). They have also recorded how crucially important these contracts were to the growth of not only the maritime trade but also to the economic, social and political progress of European city-states.
Risk sharing , Islamic finance , Mudarabah contract , Musharakah contract
Bacha, O. I., Mirakhor, A., & Askari, H. (2015). Risk sharing in corporate and public finance: the contribution of Islamic finance. PSL Quarterly Review, 68(274), pp. 187-213.
Universita di Roma