Purpose – To reopen for discussion the issue of credit creation and control in the area of Islamic banking. Design/methodology/approach – In view of a rapid expansion of Islamic banking in recent decades, the answer to questions whether Islamic banks can create credit like mainstream banks...

From a single product offering in 1963, the Islamic financial services industry has grown to an estimated $1.6 trillion in assets. Products must comply with profit and risk-sharing criteria and regulations preventing banks from venturing into activities with high risk and excessive uncertainty....

Purpose – To reopen for discussion the issue of credit creation and control in the area of Islamic banking. Design/methodology/approach – In view of a rapid expansion of Islamic banking in recent decades, the answer to questions whether Islamic banks can create credit like mainstream banks...