Document Details

Document Type : Article In Journal 
Document Title :
Impact of Islamic Modes of Finance on Monetary Expansion
أثر صيغ التمويل الإسلامي على التوسع النقدي
 
Subject : Discussion Forum 
Document Language : English 
Abstract : This paper focuses on the different perceptions about the likely impact of Islamic banks' operations on money supply. Since investment accounts with the Islamic banks carry some withdrawal facility, new money is created when the funds in these accounts go to entrepreneurs on profit sharing or murabaha basis. The paper argues that as compared to the conventional banks money creation by Islamic banks is more closely associated with the creation of additional wealth in the real sector. The resulting expansion in money supply will be smaller compared to that resulting from conventional banks' lending Out of their time and saving deposits. The Islamic banks should, therefore, be subjected to a reserve ratio smaller than that applied by the central bank to the conventional banks*. 
ISSN : 1018-7383 
Journal Name : Islamic Economics Journal 
Volume : 4 
Issue Number : 1 
Publishing Year : 1412 AH
1992 AD 
Number Of Pages : 9 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
محمد نجاة الله صديقيMUHAMMAD NEJATULLAH SIDDIQIResearcher  

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 21008.pdf pdf 

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