Publication:
A Comparative Study Of Islamic Financial System And Conventional Financial System

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Date

2014

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Global Business And Economics Research

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Abstract

The recent global financial predicament has forced regulators and economists all over the world to query the existing financial system. The objective of this article is to explore an overview of Islamic finance, including its features and its importance in the world economy. The role of Islamic finance however which act as an alternative to the conventional financial system cannot be overemphasised. Islamic financing is working within the Shari’ahstructure with certain restrictions. Islamic financial institution cannot provide finance for any activity which is prohibited by Shari’ah(Islamic law) irrespective of its profitability and economic viability for instance liquor business, pork and pornography. The methodology of this article is through qualitative method based on library research. The general finding of this article shows that there are significance differences between Islamic financial system and conventional financial system.

Description

Global Business and Economics Research Journal ISSN: 2302-4593 Vol. 3 (5): 15 - 29

Keywords

conventional financial system;, Islamic financial system

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