Islamic financial institutions keeping up with the changing world
The fourth international conference on Islamic economics and banking, was held on August 13-15 at Loughborough University London, in an effort to urge Islamic financial institutions to adopt global approaches for the challenges of the new economic reality.
“Globalization and technological advances are changing the financial landscape. Given that there are more than 1000 million Muslims in the world today, Islamic finance must contribute to this globalization process,” stated a conference member.
The conference held discussions on ways for Islamic countries to reduce international debt in the long run, as well as on the important contribution of Islamic finance, with the establishment of a growing number of Islamic banks and financial institutions. Coupled with financial expansion and development, the conference concluded that there is the growing need for Islamic banking and financial markets to encourage greater competition.
A speaker added that “restrictions on establishing new Islamic banking and financial institutions in many countries limit the market and introduce monopolistic tendencies that can hinder efficiency and innovation. Both Shariah and economics strongly discourage granting monopolistic advantage to any public or private institution," reported the Bahrain Tribune.
In order to avoid an inefficient banking system, Islamic banking ought to rely on appropriate regulations and supervisions. The conference also discussed the vital role of the Islamic Development Bank in formulating internationally recognized standards for the Islamic-banking sector.
Among the issues that remain yet to be considered on the agenda, are means of reducing world-poverty, all the while emphasizing basic Islamic principles. — (Albawaba-MEBG)