Islamic Finance: Theory and Practice

by P. Mills, J. Presley

Overview

Given the propensity of the world financial system to crisis, this book explores the radical alternative put forward by Islamic (and Western) theories of non-interest banking. The Islamic critique of interest and early experiments with non-interest banking are assessed against the conventional theories regarding banking, company finance and macroeconomic stability. Whilst the experience of Islamic banking has proved inconclusive thus far, the theoretical model provides a cogent alternative to a financial system made fragile by debt contracts.

Product Details

ISBN-13:	9780312224486
Publisher:	Palgrave Macmillan UK
Publication date:	08/04/1999
Edition description:	1999
Pages:	171
Product dimensions:	5.60(w) x 8.60(h) x 0.70(d)

About the Author

Paul S. Mills is an Economist and is Manager at UK Debt Management Office at the HM Treasury.

John R. Presley is Professor of Economics at Loughborough University and Chief Economic Advisor at Saudi British Bank.

Table of Contents

Islamic Economics and Banking: The Background
• The Islamic Critique of Interest
• The Interest-Free Financial System
• Modeling Profit and Loss Sharing
• Non-Interest Banking in Practice
• Non-Interest Finance and Macroeconomic Stability
• Key Issues in the Islamic Financial System
• The Prohibition of Interest in Western Literature
• Conclusions