Continuation
SUMMARY
The
third principle is the prohibition of:
§ uncertainty;
§ or
speculation.
However,
risk-taking is allowed when all terms and conditions are clearly:
§ stipulated;
§ and
known
to
all parties.
The
fourth principle demands the use of asset-backing.
Each
financial transaction must relate to:
§ a
tangible;
§ and/or
identifiable
underlying
asset.
This
ensures that Islamic banks remain connected to the real economy.
From the research
paper of European Central Bank
(Authors:
F.Mauro, P.Caristi, S.Couderc, A.D.Maria,
L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)
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