International development banking in an Islamic framework : lessons of Islamic Development Bank experience

Author

Minai, S. A.

Source

International Economic Relations from Islamic Perspectives

Publisher

Islamic Development Bank (IDB) Islamic Research and Training Institute (IRTI)

Publication Date

1992-12-31

Country of Publication

Saudi Arabia

No. of Pages

17

Main Subjects

Economy and Commerce
Islamic Studies

English Abstract

After giving a brief introduction on the establishment of Islamic Development Bank in 1973, the author tried to identify some distinctive features of Islamic International development Banking with special reference to Islamic Development Bank (IDB) which apart from the cardinal requirement of conformity to the Shari'ah, has an Ummah wide-approach.

It is argued that its task is much more wide ranging than that of other multilateral institutions.

The paper tried to highlight some of the lessons of IDB's experience over the past twelve years since its inception and stressed among others, the need for a substantial expansion in the volume of project financing, development of equity financing, assisting member countries in designing projects, building institutions and developing policies specially in the case of least developed member countries of the Bank, the development of new Islamic financial instruments and establishment of a secondary market and consequent deemphasizing co-financing which indirectly tends to perpetuate traditional financing practices, that include extensive use of foreign trade financing operations.

Lastly, an attempt is made to draw an agenda for the future development of the Bank and in which it is suggested that future financial has to focus more on agriculture, low cost housing, food, clothing, medical facilities and education.

Language

English

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Data Type

Book chapters

Notes

Includes in-text citations.

Record ID

BIM-778244