Description
Book SynopsisHow the Islamic finance approach to risk can serve as a model for global reform The recent U.S. financial debacle has affected the entire world and led to major reviews of risk management in financial institutions. Perhaps a simpler alternative is just to adopt the systems used for centuries in Islamic finance.
Table of ContentsPreface ix Acknowledgments xvii Glossary xix PART ONE THE HISTORY AND CAUSES OF FINANCIAL CRISES CHAPTER 1 A Brief History of Financial Crises and Proposed Reforms 3 CHAPTER 2 Financialization and the Decoupling Recoupling Hypotheses 31 PART TWO RISK SHARING AND THE ISLAMIC PARADIGM CHAPTER 3 A Brief History of Risk-Sharing Finance 49 CHAPTER 4 Risk Sharing and the Islamic Finance Paradigm 69 CHAPTER 5 Risk Sharing in the Islamic Financial System: The Building Blocks 95 CHAPTER 6 Risk Sharing and Vibrant Capital Markets in Islamic Finance 115 CHAPTER 7 Portfolio Theory and Asset Pricing 133 CHAPTER 8 Complementary Role of Intermediaries and Markets in Promoting Risk Sharing 159 PART THREE MOVING FORWARD CHAPTER 9 Enhanced Access to Finance, Social Welfare, and Economic Development under a Risk-Sharing System 181 CHAPTER 10 The Role of Institutions and Governance in Risk Sharing 201 CHAPTER 11 Gaps between the Theory and Practice of Islamic Finance 225 CHAPTER 12 Concluding Remarks 247 References 259 Index 277
