Introduction

Murat Ustaoğlu

A chapter in Islamic Finance Alternatives for Emerging Economies: Empirical Evidence from Turkey, 2014, pp 1-3 from Palgrave Macmillan

Abstract: Abstract Many of the current financial institutions emerged out of the drive and guidance from social needs. The 2008 global financial crisis put the current economic system under the questioning of the collective memory and increased future expectations and the adoption rate of alternative financial models. Social need was the main factor that affected the birth of Islamic Finance (IF), also known as Participation Banking (PB) or interest free/Islamic Banking. Muslims’ approach towards interest, which is forbidden by religion, and institutions that deal with interest, pave the way for IF. The PBs, as they are named in Turkey, are institutions that fill this pursuit and need by working as profit-loss partnerships. The idle resources of account owners, who are religiously sensitive towards interest, have mobilized the account holders themselves, the political will and the economic actors. The need for the utilization of these idle resources by the system together with religious, economic, social and political reasons, which will be detailed in the following sections of this study, constitute the grounds in which IF has surfaced.

Keywords: Collective Memory; Future Expectation; Adoption Rate; Muslim Population; Islamic Country (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-41330-7_1

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DOI: 10.1057/9781137413307_1

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