Severe Financial Crises and Fundamental Reforms: The Benefits of Risk-Sharing الأزمات المالية الخطيرة والإصلاحات الأساسية: فوائد تقاسم المخاطر

Hossein Askari ()
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Hossein Askari: Professor of International Business and International Affairs at George Washington University

Journal of King Abdulaziz University: Islamic Economics, 2015, vol. 28, issue 1, 93-128

Abstract: Over the last decade, we have established a number of ideas about Islamic finance. Most importantly, the core of Islamic finance; the concept of sharing of risk and the prohibition of such debt contracts that include the payment of interest has attracted a lot of attention.( ) Risk-sharing serves one of the most important objectives of Islam: the unity of humanity. Humanity faces a multitude of risks from shocks, over which individuals and families have little or no control, but which significantly affect their livelihood and wellbeing. Risk-sharing has many benefits.These include among others: reducing human angst, increasing human interactions, enhancing trust (an important factor in economic growth), increasing social capital (another impetus to growth), promoting social cohesion, linking the real and financial sectors of the economic system, and ameliorating financial conditions to potentially preclude financial crises. --

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:abd:kauiea:v:28:y:2015:i:1:no:4:p:93-128

DOI: 10.4197/Islec.28-1.4

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