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Risk sharing and shared prosperity in Islamic finance

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dc.contributor.authorNabil Maghrebi
dc.contributor.authorAbbas Mirakhor
dc.date.accessioned2017-02-01T14:54:04Z
dc.date.available2017-02-01T14:54:04Z
dc.date.issued2015
dc.description.abstractThis 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 leading Shari'ah scholars and Muslim economists, considers risk sharing as the essence of Islamic finance, a litmus test of which is its ability to promote financial inclusion and asset-building capacity of the poor and thus better sharing of prosperity. The mobilisation of financial resources toward productive activities through risk sharing enables the Islamic financial system to actualize economic justice and social participation in an efficient manner. The asset-backed equity-financing nature of Islamic finance is conducive to financial system stability because returns, which can only be known ex post, and thus shared on the same basis, are not divorced from risk.en_US
dc.identifier.citationMaghrebi, N., & Mirakhor, A. (2015). Risk sharing and shared prosperity in Islamic finance Islamic Economic Studies, 23(2), 85-115.en_US
dc.identifier.urihttps://ikr.inceif.edu.my/handle/INCEIF/2194
dc.languageEnglish
dc.language.isoengen_US
dc.publisherIRTIen_US
dc.rights2015. IRTI
dc.sourceSEDONA
dc.subjectRisk sharingen_US
dc.subjectIslamic financeen_US
dc.subjectFinancial systemen_US
dc.titleRisk sharing and shared prosperity in Islamic financeen_US
dc.typeJournal Articleen_US
dlc.maintopicIslamic finance
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicIslamic financeen_US
ikr.topic.subtopicIslamic financeen_US
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