Foundations of risk-sharing finance: an Islamic view
Before the inception of the Islamic finance industry (IFI), there was what could be called a 'market failure' in the conventional financial system: significant unmet demand for Shari'a-compliant financial products. IFI grew out of conventional finance to meet this demand. Muslim scholars writing since the 1970s emphasized that Islamic finance was about risk-sharing (or profit/loss-sharing) contracts (see Siddiqi, 1985).
Risk-sharing , Islamic finance , Finance
Mirakhor, Abbas. (2014). Foundations of risk-sharing finance: an Islamic view. In Mervyn K. Lewis, Mohamed Ariff & Shamsher Mohamad (Eds.), Risk and regulation of Islamic banking (pp. 107-128). Cheltenham, Glasglow: Edward Elgar Publishing Limited.
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