Profitability of Islamic PLS Banks Competing with Interest Banks: Problems and Prospects

9 Pages Posted: 5 Feb 2018

Date Written: 1983

Abstract

In many books on Islamic economics and banking published during the 1960s and early 1970s, Islamic banks are interpreted as financial institutions which base their whole "loan" business on the principle of Profit and Loss Sharing (PLS) with the entrepreneurial partners. The authors of these books usually tried to demonstrate the allocational and distributive superiority of an interest-free Islamic economy in which the conventional interest-based banking system is replaced by a system of Islamic PLS banks.

Keywords: Profitability, PLS banks, Interest Banks

Suggested Citation

Nienhaus, Volker, Profitability of Islamic PLS Banks Competing with Interest Banks: Problems and Prospects (1983). Journal of King Abdulaziz University: Islamic Economics, Vol. 1, No. 1, 1983, Available at SSRN: https://ssrn.com/abstract=3117779

Volker Nienhaus (Contact Author)

Ruhr University of Bochum ( email )

Universitätsstraße 150
Bochum, NRW 44780
Germany

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