Islamic finance in Europe (141)

Continuation

This feature has important implications for the distribution of credit risk as well as systemic stability.

Islamic finance, therefore, falls under ethical finance.

Both are:

-      concerned with the impact of financial decisions on society

-      and attract ethically-sensitive investors.

And these are growing in:

-      size

-      and number.

A comparison of ethical and Islamic investments

Main purpose of the Investment

Ethical investment – The investment seeks a financial return while pursing ethical motives.

Islamic investment - The investment seeks a financial return while conforming to Shari’ah principles.

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)