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The Paradigm of the Islamic Banking System

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  • Bogdan Munteanu

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    Abstract

    Islamic banks have constantly grown their activity and expanded across the world economy, in a matter of decades. Today, their assets cover a wide range of categories and a broad geographical area, as new financial centers emerged in Middle East and East Asia. An insight on the Islamic banking system, reveals not only a different approach to finance, but also different ways to tackle issues arisen in practice. In this respect, Islamic banks address equally to Muslim and non- Muslim customers, developed different banking products without implying the concept of “interest rate” according to holy Islamic laws, as well as created new econometrical models to monitor and estimate the dynamics. Based on innovation, the Islamic banking emerges as an alternative to classic and nowadays troubled waters of universal banking system.

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    Bibliographic Info

    Article provided by Department of International Business and Economics from the Academy of Economic Studies Bucharest in its journal Romanian Economic Journal.

    Volume (Year): 11 (2008)
    Issue (Month): 29 ((3))
    Pages: 185-189

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    Handle: RePEc:rej:journl:v:11:y:2008:i:29:p:185-189

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