Considering the Dichotomy between the Ideals and Realities of Islamic Finance
New Horizon, No. 174, p. 32, January-March 2010
2 Pages Posted: 7 Jan 2011 Last revised: 24 Jun 2012
Date Written: 2010
The criticisms of the financial system opened up a new discussion on the importance of moral in economic and financial life. Islamic moral economy (IME) provides a constructivist response to this through integrating moral into IBF in a systematic and spiritual manner. However, a critical examination of the developments and trends in IBF since its globalisation in 1990s indicate that the convergence has been from IBF to conventional finance in terms of operations and functioning; and that IBF, through its commercial banking and finance nature, does not necessarily uphold the spirit of IME.
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