Islamic Banking and Finance: Current Developments in Theory and Practice

This book is an attempt to provide an overview of such developments, which were discussed in the 4th International Conference on Islamic Economics and Banking held at Loughborough University, UK during August 13-15, 2000. The book particularly discusses the performance, prospects and challenges facing the Islamic financial industry and highlights the opportunities offered by Islamic financial instruments as an alternative way to financial intermediation. Main contents include Decision making under uncertainty, Social norms and trading rules: the means to reduce moral hazard in Islamic financial products, Incentive-compatible profit-sharing contracts, Regulation of the stock market in an Islamic economy and more…