Cover IMF Working Papers
An Overview of Islamic Finance
Author:
Mr. Mumtaz Hussain
Search for other papers by Mr. Mumtaz Hussain in
Current site
Google Scholar
PubMedClose
,
Asghar Shahmoradi
Search for other papers by Asghar Shahmoradi in
Current site
Google Scholar
PubMedClose
, and
Ms. Rima A Turk
Search for other papers by Ms. Rima A Turk in
Current site
Google Scholar
PubMedClose
https://orcid.org/0000-0001-5321-6524
Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 120
Language:
English
Publication Date:
02 Jun 2015
DOI:
https://doi.org/10.5089/9781513590745.001
ISBN:
9781513590745
ISSN:
1018-5941
Pages:
35
Keywords:
WP; bank; Shari'ah; monetary policy; banking assets; equity capital; Islamic Finance; Islamic Banking; Financial Stability; Sukuk; rate of return; bank management; profit sharing; profit-sharing financing; bank act; central bank certificate; profit share; assets data; conventional bank; Financial sector stability; Liquidity management; Open market operations; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (912.2 KB) Download Epub
Islamic finance has started to grow in international finance across the globe, with some concentration in few countries. Nearly 20 percent annual growth of Islamic finance in recent years seems to point to its resilience and broad appeal, partly owing to principles that govern Islamic financial activities, including equity, participation, and ownership. In theory, Islamic finance is resilient to shocks because of its emphasis on risk sharing, limits on excessive risk taking, and strong link to real activities. Empirical evidence on the stability of Islamic banks, however, is so far mixed. While these banks face similar risks as conventional banks do, they are also exposed to idiosyncratic risks, necessitating a tailoring of current risk management practices. The macroeconomic policy implications of the rapid expansion of Islamic finance are far reaching and need careful considerations.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2015: Issue 120