IslamicFinance.de

The crucial strength of Islamic finance over conventional systems in the economic crisis was asset quality.
Islamic principles meant that Islamic finance was not involved in investing in low-quality assets that lacked transparency, according to Professor Simon Archer.
Mr Archer said the industry needs these instruments to provide it with liquidity but it must be wary of how these accounts are structured because there is a danger that if you get too close to conventional financial bonds then you are no longer Sharia-compliant.
He said that at present there are not enough high-quality investment instruments to provide liquidity and that means institutions have to keep high levels of cash which affects profitability.