Future of Capital Market after Crisis : Introduction to Islamic Banking as a Solution
The financial crisis is not too far gone; the ripple effects of it are still being felt, especially in countries like India, where the impact was slow in filtering through. It is still a very pertinent topic, especially keeping India in mind. With this backdrop/background, a possible solution has been looked at in this dissertation to ensure such a global crisis does not reoccur. In order to come to a possible solution a clear analysis has to be made of the possible causes of the crisis.Looking through the literature available, investment banking and credit ratings emerged as two of the many factors that led to the financial crisis of 2007-2008. The researcher has gone into some detail to give the history of the evolution in the banking system, from commercial banks, to investment banks. The laws and regulations that helped set the scene for giving credit ratings and investment banking the inordinate power/leverage into risky or dodgy deals. This detail adds clarity to the workings within the financial world. Until loans were backed with solid secure tangible assets, banking was said to be conservative. With the creation of derivatives and hedge funds, (that was possible thanks to the laws and bills passed at regular intervals) and the endless permutations of loans being backed by futures, and intangible securities, the danger of slipping (into an endless downward spin) increased. This leads the researcher to look at Islamic banking, with its inherent conservative outlook. Islamic banking claims it can function without interest being a key element in financial transactions. This was seen as something ostensibly impossible while the financial boom was in its heyday. However with the slump/crisis within the global financial global, considering or looking at Islamic finance became an option? With this in mind, the researcher looks at what holds Islamic banking from taking off as a viable alternative. For this purpose he devised a questionnaire. His questionnaire first gauges how savvy the respondents are about financial concerns. And then he questions them on what Islamic banking means to them. He is able to keep focus to pertinent questions in order to get some meaningful answers. The analysis of the survey is the basis of what the researcher puts forwards as possible remedies to offset future crises. It is the hope of the researcher that this will set the stage for future in-depth research/analysis into Islamic banking
Year of publication: |
2011
|
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Authors: | Nasree, Sualeh |
Other Persons: | Nasree, Mohammad Sualeh (contributor) |
Publisher: |
[2011]: [S.l.] : SSRN |
Subject: | Islamisches Finanzsystem | Islamic finance | Finanzkrise | Financial crisis | Finanzmarkt | Financial market | Welt | World |
Saved in:
freely available
Extent: | 1 Online-Ressource (110 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2011 erstellt |
Other identifiers: | 10.2139/ssrn.1879407 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013122851
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