Realizing the Potential of Islamic Finance
Islamic finance has been growing rapidly in recent years. Motivated by a heightened interest in financial instruments that emphasize risk sharing, it has been attracting greater attention in the wake of the recent financial crisis. This class of in...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/03/15978053/realizing-potential-islamic-finance http://hdl.handle.net/10986/10051 |
| Summary: | Islamic finance has been growing rapidly
in recent years. Motivated by a heightened interest in
financial instruments that emphasize risk sharing, it has
been attracting greater attention in the wake of the recent
financial crisis. This class of instruments appears to have
avoided many of the most severe consequences of the crisis.
Several features underpin the expansion and performance of
Islamic finance. Addressing key regulatory and governance
issues will be essential for Islamic finance to achieve its
full potential. Several multilateral development
institutions, including the World Bank, have longstanding
programs to support the development of the industry and have
used Islamic instruments, to varying extents, to tap capital
markets. In the coming years, Islamic finance could account
for a substantial share of financial services in several
countries, meeting the preferences of significant numbers of
people, enhancing financial inclusion and intermediation,
and contributing more broadly to financial stability and development. |
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