A major reason for the recurrent episodes of financial instability is the predominance of interest-based debt and leveraging. Financial stability is achievable through risk sharing finance instead of risk shifting that characterizes contemporary finance. A risk sharing system serves the true...

Under conditions of radical uncertainty, risk sharing renders financial systems anti-fragile. Our goal in this paper is to show that risk-sharing Islamic finance (RSIF) shares the characteristics defined by Taleb for an anti-fragile system, by mapping some characteristics of anti-fragility onto...

This paper argues that risk sharing is an effective method of expanding participation of agents in economic growth and development and more effective sharing of fruits of prosperity than risk transfer that currently dominates financial systems. Kuala Lumpur Declaration of 2012, by a group of...