Wednesday, May 10, 2017

Islamic finance in Europe (57)

Continuation
The Islamic capital market is an integral part of the Islamic financial system.
It enables:
-      the efficient mobilisation of resources
-      and an optimal allocation thereof
thereby complementing the financial intermediary role of Islamic institutions in the investment process.
Although this market functions similarly to the conventional capital market.
Any financial arrangement it facilitates has to be in line with the Shari’ah principles summarised earlier.
At present:
-      Islamic equity
-      Islamic bonds (sukuk)
-      Islamic funds
-      and Islamic real estate investment trusts (REITs)
are offered as alternatives to conventional instruments.
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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