Cooperative and Islamic Banks: What can they Learn from Each Other?
Saeed Al-Muharrami and
Daniel C. Hardy
A chapter in International Perspectives on Participation, 2014, vol. 15, pp 73-94 from Emerald Publishing Ltd
Abstract Islamic and cooperative banks – including credit unions – are broadly similar in that they both share risk with savers. However, risk sharing goes along with ownership control in cooperatives, whilst Islamic banks share risk with borrowers also, and full downside risk with depositors. Islamic banking is consistent with mutual ownership, which may ease some of the governance and efficiency concerns implied by Shari’ah constraints. Greater risk sharing among cooperative bank stakeholders, along the lines of products offered by Islamic banks, may strengthen cooperatives’ financial resilience.
Keywords: Islamic banks; cooperative banks; credit unions; profit and loss sharing; G20; G21 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/S0885-333920 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:aeapzz:s0885-333920140000015011
Ordering information: This item can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://www.emeraldgr ... ies.htm?id=0885-3339
Access Statistics for this chapter
More chapters in Advances in the Economic Analysis of Participatory & Labor-Managed Firms from Emerald Publishing Ltd
Bibliographic data for series maintained by Charlotte Maiorana ().