[ 30th September 2022 by Jessica Dhu 0 Comments ]

The financial crisis – Western banking versus Islamic banking, Michael Busler

Michael Busler
The Richard Stockton College
Email: Michael.busler@stockton.edu


Abstract: The financial crisis has had a devastating impact on financial markets in the US and other western countries. Particularly hard hit were investors who purchased mortgaged backed securities, since as the value of the asset declined below the amount of debt, investors took large losses. Countries that follow Islamic Banking and Finance (IBF) have largely been spared this loss due to the types of bonds that are allowed. This research summarises the problem in the Western World and then compares it to a similar problem faced by Dubai World who had a (standstill) when they were unable to make a required payment. It appears that holders of Dubai World sukuk will be spared losses because of Islamic banking laws. We examine both the short term and long term effects.
Keywords: Financial crisis; Islamic banking; Sukuk; Dubai World
Citation: Busler, M. (2011), "The financial crisis – Western banking versus Islamic banking", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 7 No. 1, pp. 1-16. https://doi.org/10.1108/20425961201000026

WJEMSD V7 N1 2011 Busler.pdf
WJEMSD V7 N1 2011 Busler.pdf
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