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La crise financière mondiale et la finance islamique: une revue de la litérature
[The global financial crisis and Islamic finance: a review of selected literature]

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  • DIAW, Abdou

Abstract

The Global Financial Crisis (GFC) has shaken the theoretical and physical foundations of the international financial system. Notwithstanding the severity of the crisis, Islamic financial institutions have shown a relative resilience that has given more credibility to Islamic finance and drawn more attention to its core principles. This paper reviews the writings of Islamic economists on the GFC. Most of the authors reviewed acknowledged the technical mistakes put forth by many conventional analysts as causes of the crisis. However, Islamic economists established a link between those technical mistakes and the flawed system that creates a fertile ground for their occurrence. They, thus, showed how the adoption of the principles of Islamic finance would have prevented most of those mistakes. The way forward, therefore, for both Islamic and conventional finance is, inter alia, greater reliance on risk sharing to inject more discipline in the system; the establishment of a strong and comprehensive regulatory body to safeguard the resilience of the system and the integration of Zakat, Awqaf and other voluntary institutions into the financial system to cater for the financial needs of the poor.

Suggested Citation

  • DIAW, Abdou, 2011. "La crise financière mondiale et la finance islamique: une revue de la litérature [The global financial crisis and Islamic finance: a review of selected literature]," MPRA Paper 32754, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:32754
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    References listed on IDEAS

    as
    1. Thomas I. Palley, 2013. "Financialization: What It Is and Why It Matters," Palgrave Macmillan Books, in: Financialization, chapter 2, pages 17-40, Palgrave Macmillan.
    2. Mirakhor, Abbas & Krichene, Noureddine, 2009. "The Recent Crisis: Lessons for Islamic Finance," MPRA Paper 56022, University Library of Munich, Germany.
    3. Christopher L. Foote & Kristopher Gerardi & Lorenz Goette & Paul S. Willen, 2008. "Subprime facts: what (we think) we know about the subprime crisis and what we don’t," Public Policy Discussion Paper 08-2, Federal Reserve Bank of Boston.
    4. Hyman P. Minsky, 1991. "Financial Crises: Systemic or Idiosyncratic," Economics Working Paper Archive wp_51, Levy Economics Institute.
    5. Mr. Jemma Dridi & Maher Hasan, 2010. "The Effects of the Global Crisison Islamic and Conventional Banks: A Comparative Study," IMF Working Papers 2010/201, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Finance islamique; crise financière; secteur bénévole; partage des risques; réglementation;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises

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