Islamic finance - Essay Example

Only on StudentShare

Extract of sample
Islamic finance

It may be defined as a finance system that conforms to Islamic law, also known as Sharia, although the definition does not imply that is it limited to Muslims or Islamic countries (Rammal & Zurbruegg 86) Islamic finance is guided by ethical concepts prescribed by Sharia in relation to money and capital and the association between profit and risk as well as the social obligations of financial institutions. It has grown into a global and cosmopolitan financial system, committed to a text that may be accessed by all people. Being open to innovation, the system has been able to effectively compete with the conventional financial system by offering a wide range of financial products suiting numerous customer needs. Serving as an alternative to the conventional financial system, Islamic finance has been forging a more functional link between activities of real economy that generate value and the financial activities which facilitate it. This paper will discuss ways in which Islamic finance can be considered as an alternative to conventional finance and why it is a viable alternative. Governance and Regulation Although it is governed by the same fundamental monetary policies as conventional banking, the key and most significant distinguishing factor is the requirement of a strict adherence to a code of ethics (Zepeda 52). At the microeconomic level, Islamic finance is regulated by Sharia supervisory boards, or Sharia scholars at the least, who are responsible for approving and reviewing financial products and practices for compliance with Sharia guidelines. ...Show more

Summary

Islamic finance and banking was launched as a significant practice in the financial field almost 30 years ago and has grown from a marginal industry to raise hope in a situation that was getting desperate. …
Author : sbosco
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Islamic finance"
with a personal 20% discount.
Grab the best paper

Related Essays

Hindu Tradition + Christian Thought + Greek Philosophy
Shaivism laid emphasis on the love of god and the redemption that has been done for mankind, while Vaishnavism laid more importance on the God of the skies. Saivism was conceived in the state of Tamil Nadu in India, where the Dravidians are mainly found. It became a proper religion only between 3rd and 10th century AD.
14 pages (3500 words) Research Paper
The Origins of Islamic Culture
The purpose of this research paper will be to discuss the history of Islam; Islam and culture; the main principles of the Islamic law; Islamic finance and banking; Islamic finance variations and investments; Islamic education; Islamic architecture; Islamic clothing; Islamic literature; the Mosque; Islamic art and calligraphy.
15 pages (3750 words) Essay
Islamic Terrorism
Islamic terrorism is an issue that is causing problems all over the world, especially the Western nations. The Islamic terrorists have utilized the opportunity of the growing rift between Islamic countries and Western nations for their terrorist attacks and for this they are using the cover of religion.
8 pages (2000 words) Research Paper
Islamic and christian perspective on computer science
Whether it is true or not that religion is the opium of the masses, as Marxist may assert, or not, one for sure is that religion plays a crucial role in determining how human beings make their decisions. It is immaterial which religion people subscribe to, the common denominator is that all religions point out to some supernatural being whose powers people believe in.
7 pages (1750 words) Essay
Identify major Islamic eras and key figures in Islamic history who have had the greatest impact on the Muslim faith and on world
This was the most important period in the Islamic history since it also involves the caliphate of the first four caliphs thus making it similar to the apostolic age of Christianity. The period of the Caliphs is highly regarded by Muslims as the greatest turning point of the Islamic religions and they strongly use this period as guidance to their subsequent lives.
3 pages (750 words) Essay
Islamic Finance
The size of Islamic finance has grown substantially over the years to the present estimated value of between $500 billion and $1,000 billion (Warde 43). However, despite this massive value, and the remarkable growth rates of 10-15%, Islamic finance is still an understated fraction of conventional banking
4 pages (1000 words) Essay
Core Elements of Islamic Finance
The similarity between the Islamic finance system and conventional financial systems is that they both feature banks, insurance firms, capital markets, investment companies and fund managers.
4 pages (1000 words) Essay
Islamic finance and conventional finance
This is especially significant due to its timing, with the Islamic financial movement appearing in an era of the wider Islamic resurgence, accompanied by moral implications that characterize the Islamic approach to finance, banking and money (Sait & Lim 73).
3 pages (750 words) Research Paper
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT