Islamic finance in Europe (109)

Continuation

The final section underlines the extent to which Islamic:

-      instruments

-      and principles

can be incorporated into conventional finance.

3.1 RISK-RETURN PROFILE OF ISLAMIC PRODUCTS AND SERVICES

As mentioned in Section 1.4, IIFSs (Institutions Offering Islamic Financial Services) have developed a wide range of instruments based on Shari’ah principles.

In contrast to a conventional financial institution, an IIFS may extend its scope beyond the traditional role of financial intermediation:

-      by acting as a property developer providing funding via equity injections for customers

-      or by trading in tangible assets.

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)