Implementing the Fundamental Principle of Islamic Finance PLS in Order to Reduce Moral Hazard on the Financial Services Market

Moral hazard is a situation where agent takes a risky actions, knowing that potential costs will be born by principal. In finance, moral hazard arises when advisers take risky decisions come to believe that they will not have to carry the full burden of potential loses. Implementing the fundamental principle of Islamic finance PLS could reduce moral hazard on financial services market.

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Year of publication:	2014
Authors:	Piotrowski, Dariusz
Published in:	Acta Universitatis Nicolai Copernici, Ekonomia. - Uniwersytet Mikolaja Kopernika. - Vol. 45.2014, 1, p. 99-113
Publisher:	Uniwersytet Mikolaja Kopernika
Subject:	moral hazard \| Islamic finance \| financial advisory \| profit and loss sharing

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Extent:	application/pdf
Type of publication:	Article
Classification:	D82 - Asymmetric and Private Information ; Z12 - Religion
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011096340