Point of View: Strategy Change and the Economic Crisis: The Business Models of Islamic Investment Banks
After what will have been the longest period of sustained economic contraction since the great depression, Islamic banks, which have not suffered in the same manner as their conventional counterparts, should be seen as a safer and more socially responsible alternative.
The widely adopted Shari'ah prohibition of conventional derivative financial instruments, however, should at least provide a stark and direct reminder to Islamic banking circles of the importance of proceeding cautiously when structuring to replicate.
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