Islamic finance in Europe (83)

Continuation

The prospects for the further development of Islamic finance in Germany are rather solid.

First, Germany is the largest economy in Europe and it features the largest Muslim population.

Thus, 4.1 million people in Germany, for example against:

-      3.5 million in France

-      and 2.9 million in the UK.

Second, German exporters could use institutions offering Islamic financing solutions as alternative sources of funding.

Thereby it further enhances their funding profiles.

Third, Islamic trade finance products offer the potential to strengthen trade ties with countries such as Turkey.

Turkey is a country which is an active trading partner of Germany and that has a budding Islamic finance sector.

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)