The global financial crisis, risk management and social justice in Islamic finance
Joint Authors
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 1, Issue 1 (31 Dec. 2009), pp.33-58, 26 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2009-12-31
Country of Publication
Malaysia
No. of Pages
26
Main Subjects
Financial and Accounting Sciences
Religion
Islamic Studies
Topics
- Islamic jurisprudence
- Foundations of Islamic jurisprudence
- Financial crises
- Islam
- Management
- Welfare economics
- Social justice
- Ruling in Islam
- Social welfare
- Production
- Financing
- Credit
- Profits
- Money
- Resource allocation
- Stockholders
- Speculation
- Resale on profit
- Usury
- Partnerships
- Global Economic Crisis (2008-2009)
- Agency(Law)
- Economic activities
- Loss(Psychology)
- Economic justice
- Financial risk
Abstract EN
The most salient values of the Islamic financial system are fairness and socio-economic justice.
The exuberance of Islam’s uncompromising commitment to the well-being of humankind goes beyond its caring for existing generations to ensuring a sustainable future for generations to come.
This is evident by giving utmost priority to the environment and preserving earth’s valuable–yet limited–endowments and resources, and by limiting public borrowings to available resources hence freeing future generations from the burden of debt.
The Islamic system of production and finance based on profit-and-loss sharing (PLS) is more efficient and equitable in distribution of wealth and income.
Allocation of funds under risk sharing will be based on the viability and expected profitability of the proposed entrepreneurial undertakings rather than on the creditworthiness of competing entrepreneurs.
Furthermore, risk sharing offers both entrepreneurs and investors incentives to be truly engaged in productive economic activities, wherein entrepreneurs will be encouraged by the prospect of seeing their ideas transformed into business entities, and financers will be obliged to assess the risk involved more cautiously, and effectively monitor the use of funds by the entrepreneurs.
The appropriate implementation of such partnership contracts increases the likelihood of business success, injects more discipline into the financial market by reducing excessive lending, and ultimately will have positive implications for the socio-economic well-being of society at large.
American Psychological Association (APA)
Hassan, M. Kabir& Kayid, Rasim. 2009. The global financial crisis, risk management and social justice in Islamic finance. ISRA International Journal of Islamic Finance،Vol. 1, no. 1, pp.33-58.
https://search.emarefa.net/detail/BIM-717748
Modern Language Association (MLA)
Hassan, M. Kabir& Kayid, Rasim. The global financial crisis, risk management and social justice in Islamic finance. ISRA International Journal of Islamic Finance Vol. 1, no. 1 (Dec. 2009), pp.33-58.
https://search.emarefa.net/detail/BIM-717748
American Medical Association (AMA)
Hassan, M. Kabir& Kayid, Rasim. The global financial crisis, risk management and social justice in Islamic finance. ISRA International Journal of Islamic Finance. 2009. Vol. 1, no. 1, pp.33-58.
https://search.emarefa.net/detail/BIM-717748
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 57-58
Record ID
BIM-717748