Risk sharing versus risk transfer in Islamic Finance: A critical appraisal
نویسنده
چکیده
منابع مشابه
Realizing the Potential of Islamic Finance
The concept of Islamic or Shariah-compliant finance is based on core tenets of Islam concerning property rights, social and economic justice, wealth distribution, and governance. One of the key features of the system is prohibition of riba (interest) and gharar (ambiguous contracts or deals) (Kabir and Mahlkrecht 2011, 74; El-Gamal 2009, 58–60). There is consensus among scholars that the prohib...
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The forbidden bay‘u al-gh ̄ arar can best be translated as “trading in risk”. In the face of risk, any trade would involve some degree of trading in risk, and thus jurists disagree over whether a specific contract is forbidden or not based on their varying assessments of whether the amount of risk is substantial or small. Moreover, the prohibition is often overruled in cases where clear economic...
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