Tuesday, January 30, 2018

Islamic finance in Europe (137)

Continuation
There is only a minimal difference between these two investment approaches.
Some elements are prohibited by the Shari’ah but not by socially responsible investment.
Thus, interest-based financial:
-      instruments
-      and institutions
prohibited by the Shari’ah, but suitable for socially responsible investments.
Nevertheless, the end objective of both is very similar – to invest in or finance activities that are beneficial to humanity.
3.4 OTHER POSITIVE ASPECTS OF ISLAMIC FINANCE
Islamic finance essentially:
-      promotes financial transactions with links to the real economy
-      and abstains from financing activities that are detrimental to society.
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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