The Stability of Islamic Finance main focus is on the question of the sources of financial instability which seems inherent in the conventional system. As a core component of this focus, the book will consider episodes of turbulence and instability in a historical context recalling the...

We present a brief and general discussion of risk, followed by a summary of the essential characteristics of Islamic finance and the structure of Islamic banking. We then turn to the stability features of Islamic finance, followed by summary of the Mian–Sufi contribution for comparative and...

In an Islamic economy, the financial sector functions to support the real sector. There are no interest rate based debt instruments. Financial assets are based on risk and return sharing and are contingent claims. Real as well as monetary forces determine the rate of return. As in traditional...