Issues in Islamic Finance: Financial Crises caused by Lack of Risk Sharing

2008 was marked by a banking crisis that had a major impact on the world's economy. While the origins of the crash are still hotly debated, one issue has made a significant impact on the financial world – by and large, the real casualties of the crisis were not banks or financial moguls, but average people. One positive result of the 2008 crash has been a shift in the economic and business sectors towards a more ethical code of practice. There are areas of the economic world that are poised to provide the sound, ethical, and forward-thinking financial services, and for those already working in Islamic Finance the answer to solving and preventing the world's economic woes seems obvious – risk sharing.