Access to finance and collaterals : islamic versus western banking

الملخص EN

Islamic banking would contribute to the emergence of a just and growing economy by enabling small enterprises to obtain finance on participatory basis in which a collateral is not necessary.

This is in sharp contrast with the conventional banking which insists on tangible collaterals, discriminating against small units and favoring the propertied rich.

As a result income distribution deteriorates further, whereas Islamic banking will improve income distribution.