What is it about?
In this paper, we attempt to touch upon an overlooked area which is a thorough and objective analysis of Islamic banking with its economic merits and shortcomings.
Featured Image
Why is it important?
There is vast literature available on explaining the features and mechanics of Islamic banking; however, limited attention has been paid on the thorough analysis of Islamic banking architecture from finance, economics, and development and distribution point of view. This paper attempts to fill this gap.
Perspectives
Islamic bank have grown tremendously, but have low advance to deposit ratio, higher spreads and lower penetration in micro finance and small enterprise finance despite high surplus liquidity. The predominant use of debt based finance, use of interest based benchmarks and expensive products leaves a lot to be desired from the perspective of achieving the ideals of egalitarian distribution, which was celebrated as a distinguishing factor to yearn for in the initial days of Islamic banking.
Dr Salman Ahmed Shaikh
Islamic Economics Project
Read the Original
This page is a summary of: Economic Analysis Of Islamic Banking in Pakistan, The Journal of Muamalat and Islamic Finance Research, January 2013, Al Manhal FZ, LLC,
DOI: 10.12816/0008159.
You can read the full text:
Contributors
The following have contributed to this page
