Durham Islamic Finance Conference 2010

Dur.ac.uk:The current financial crisis is considered to be the most severe, since the Great Depression, has shaken the very foundations of the capitalist financial system. Despite the fact that most of those involved in Islamic finance claim the immunity of the sector against the financial crisis, a critical examination of the sources of the current crisis will demonstrate that Islamic finance could potentially encounter a similar fate.

The key factors causing the crisis can be identified at three levels: a deregulated environment, financial institutions engaged in excessive risk taking, and the use of innovative complex products. When the practice of Islamic finance and the environment under which it operates is examined, one can identify trends that are similar to the ones that caused the current crisis....continue