Key Issues in the Islamic Financial System

Abstract

The implications of complete Islamic economic and financial systems are all embracing; in a book of this kind it is impossible to discuss every ramification of such a system. In this chapter some important topics are examined from the perspective of a non-interest economy, but it cannot be pretended that these are necessarily the most important topics nor that the coverage of these is totally comprehensive. For example, the question of equity in Islam is worthy of a book in itself, but here it gains only a passing and superficial treatment.¹ The four topics chosen — savings behaviour; the allocation of loanable funds; bank stability and public finance; and government borrowing — if anything, are selected because they reflect the interests of the authors — no more and no less.