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Technical Note

Educator Copy

RETHINKING ISLAMIC FINANCE

Saad Azmat, Ayesha Bhatti, Hira Ghaffar


INDUSTRY : Banking, Islamic Finance

AREA : Finance

ORGANIZATION : -

LENGTH : 18

LUMS No : 02-614-2016-2

PUBLICATION YEAR : 2016

DESCRIPTION

KEYWORDS:

Islamic banking, Islamic Finance, Islamic economic system, Capitalism, Socialism, Integrative social contract, Social contract theory


DESCRIPTION:

The note is structured such that it first revisits some of the concepts of Islamic finance that differentiate it from conventional finance in Section 1. Next in Section 2, based on the results of interviews, it explains some of the criticisms present-day Islamic banking faces along with responses from the advocates of the practice. In Section 3, it then explores the causes of these criticisms using integrative social contract theory followed by ways to rethink Islamic finance in Section 4. Section 5 concludes the note.


LEARNING OBJECTIVES:


SUBJECTS COVERED:

Finance