Continuation
Islamic banking
has become the fastest growing segment of the international financial system.
The internationalisation
of Islamic finance makes it a potentially additional means by which
intermediation can take place around the globe vis-à-vis cross-border financial
flows.
Turning to
Europe, Islamic finance is still at a fairly embryonic stage.
But a number of
factors would tend to support further development of this system:
-
government
incentives and the measures introduced to create an environment conducive to a
growing and thriving Islamic finance industry;
-
the growing
Muslim population within European jurisdictions;
-
the increased emphasis
on alternative financial solutions in the wake of the European financial
crisis;
-
the substantial appetite for attracting liquidity from emerging
markets.
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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