Islamic Banking: Experiences in the Islamic Republic of Iran and Pakistan

30 Pages Posted: 15 Feb 2006  

Abbas Mirakhor

International Centre for Education in Islamic Finance (INCEIF)

Date Written: January 30, 1989

Abstract

In an Islamic system, as interest is prohibited, banks are expected to operate solely on the basis of profit and risk sharing. This paper describes the developments in Islamic banking in Iran and Pakistan. As these two countries have initiated the most far-reaching experiments with Islamic banking, their experiences have a significant bearing on the feasibility of such a system. The developments in these countries are evaluated against the theory underlying the Islamic banking, and suggestions are made to achieve a more efficient system.

JEL Classification: 3116, 3120, 314

Suggested Citation

Mirakhor, Abbas, Islamic Banking: Experiences in the Islamic Republic of Iran and Pakistan (January 30, 1989). IMF Working Paper, Vol. , pp. 1-30, 1989. Available at SSRN: https://ssrn.com/abstract=884583

Abbas Mirakhor

International Centre for Education in Islamic Finance (INCEIF) ( email )

Kuala Lumpur
Malaysia

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