Islamic Finance: An Alternative Finance or an Antidote to the Crisis of Capitalism?

Geneviève Causse

A chapter in Recent Developments in Alternative Finance: Empirical Assessments and Economic Implications, 2012, pp 173-196 from Emerald Group Publishing Limited

Abstract: Purpose – This chapter shows that Islamic finance does not aim at substituting the conventional financial system, rather it can be used to reform it. It can thus indirectly contribute to its survival. Methodology/Approach – We first present the peculiarities of the Islamic financial model. We then investigate its prospects: coexistence, integration, substitution? It is the investigation of the strategy and activities of the Islamic banks that allows to address this issue. Findings – We find that the deliberate strategy is essentially to compete with conventional banks. Consequently, there is a willingness to be part of the conventional system. The study of the Islamic financial system allows to conclude that their emergence serves a purpose. The Islamic financial principles provide a benchmark for improving and reforming the conventional system. Originality/Value of Paper – The main contribution is to provide a clear answer to the future of Islamic finance, and to present the contribution of Islamic finance to renewal of financial and economic thought.

Keywords: financial system; conventional system; Islamic banking; crisis of capitalism; cointegration of finance; wealth management; solidarity (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... 0386(2012)0000022014
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:isetez:s1571-0386(2012)0000022014

DOI: 10.1108/S1571-0386(2012)0000022014

Access Statistics for this chapter

More chapters in International Symposia in Economic Theory and Econometrics from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().