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Economic Solutions From Islamic Finance: Position Statement of the International Association for Islamic Economics الحلول الاقتصادية من التمويل الإسلامي: بيان موقف الجمعية الدولية للاقتصاد الإسلامي

In: Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي

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  • International Association for Islamic Economics

    (International Association for Islamic Economics)

Abstract

The current global financial crisis has called the attention of world leaders and financial decision makers to seriously consider building a new world financial system. We believe that Islamic economics has much to offer for building a more just and stable market system that encourages real wealth creation and contains market fluctuations. The current crisis stemmed from excessive indebtedness resting on a relatively small base of equity and real wealth, “the inverted debt pyramid”. A significant chunk of finance became merely the selling present for future money. Besides, poor regulations have encouraged over indebtedness. To build a sustainable system, debt must grow in tandem with real (as opposed to financial) wealth; leverage must be capped by productivity potentials. This allows for real wealth to grow without being hurdled with too heavy debt. دعت الأزمة المالية العالمية الحالية انتباه قادة العالم وصناع القرار الماليين للنظر بجدية في بناء نظام مالي عالمي جديد. نحن نعتقد أن الاقتصاد الإسلامي لديه الكثير ليقدمه لبناء نظام سوق أكثر عدلاً واستقراراً يشجع على خلق الثروة الحقيقية ويحتوي على تقلبات السوق. نشأت الأزمة الحالية من مديونية مفرطة ترتكز على قاعدة صغيرة نسبيا من الأسهم والثروة الحقيقية ، "هرم الديون المقلوب". وأصبح جزء كبير من التمويل مجرد عرض بيع لأموال مستقبلية. إلى جانب ذلك ، شجعت القواعد التنظيمية السيئة على المديونية. لبناء نظام مستدام ، يجب أن ينمو الدين جنبا إلى جنب مع ثروة حقيقية (في مقابل الأموال) ؛ يجب أن تغطى الرافعة بإمكانيات الإنتاجية. وهذا يسمح للثروة الحقيقية بالنمو دون التعرض لخطر الديون الثقيلة.

Suggested Citation

  • International Association for Islamic Economics, 2009. "Economic Solutions From Islamic Finance: Position Statement of the International Association for Islamic Economics الحلول الاقتصادية من التمويل الإسلامي: بيان موقف الجمعية الدولية للاقتصاد الإسلامي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 16, pages 265-269, King Abdulaziz University, Islamic Economics Institute..
    • Handle: RePEc:abd:ieibch:116
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    References listed on IDEAS

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    1. Islahi, Abdul Azim, 2013. "Economic and Financial Crises in Fifteenth-Century Egypt: Lessons From the History," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 21, pages 71-94.
    2. Priyonggo Suseno & Omar Bamahriz, 2017. "Examining the impact of bank’s risks to Islamic banks’ profitability," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 9(2), pages 125-137, April.
    3. Muhammad Anas Zarqa, 2019. "Islamic and Conventional Economics – Dialogue and Ethics الحوار والأخلاق بين الاقتصادَيْـن الإسلامي والتقليدي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 32(2), pages 125-135, January.
    4. Abdus Samad, 2021. "Analysis of Comparative Efficiencies of Islamic Banks Across Nine South and Southeast Asian Countries," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 10(1), pages 71-85, January.
    5. Ascarya Ascarya & Ugi Suharto & Jardine A. Husman, 2022. "Proposed model of integrated Islamic commercial and social finance for Islamic bank in Indonesia," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 115-138, March.

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