Document Details

Document Type : Article In Journal 
Document Title :
Financial Intermediation in an Islamic Economy
الوساطة المالية في الاقتصاد الإسلامي
 
Subject : Discussion Forum 
Document Language : Arabic 
Abstract : This paper examines the nature of bank financial intermediation in an Islamic economy. It concludes that for such intermediation to be optimal, is should be based on bank's agency relationship (e.g. wakalah, mudarabah, musharakab) with both sides: savers (surplus units) and businessmen (deficit units). In theory, such model of banking achieves an optimal level of efficiency and profitability. In comparison, traditional model of banking (based on debt on both sides) is more vulnerable to disturbances, and attains a lower level of profitability. The common model of existing Islamic banks (based on murabaha on the asset side) on the other hand, is less efficient than the proposed model. The paper also compares Islamic intermediation with the ordinary trading, and outlines the differences between them. 
ISSN : 1018-7383 
Journal Name : Islamic Economics Journal 
Volume : 10 
Issue Number : 1 
Publishing Year : 1418 AH
1998 AD 
Number Of Pages : 26 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
سامي إبراهيم السويلم SAMI IBRAHIM AL-SWAILIMResearcher  

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