International Conference on Eurasian Economies
24-25 August 2021 – Istanbul, TURKEY and ONLINE
Paper properties
Paper ID : 2506
Status : Paper published
Language : English
Topic : Finance and Financial Crises
Presenter: Dr. Gyöngyi Bánkuti
Session : 5A Finance
The Importance and Expansion of the Islamic Bank Sector
Importance and expansion of the Islamic Bank Sector
- Dr. Gyöngyi Bánkuti (Hungarian University of Agriculture and Life Sciences, Hungary)
Abstract
Islamic Finance grows in international finance across the globe. The aim of this study is to introduce the importance and specificities of the rapidly expanding Islamic banking system worldwide, as well as its expansion process. After a summary of the economic principles of the Islamic banking systems, with special emphasis on the principle of profit and risk sharing, - which essentially distinguishes Islamic and traditional interest-based banking systems - special highlight will be on the countercyclical feature of Islamic banks, which is also a fundamental difference from the procyclical feature of the traditional banking systems. The spread of the Islamic banking system is investigated, also stated, that the growth of it can be only partly explained by the expansion of the Muslim population. It can be stated, the Islamic banking system will become a decisive factor that will gain more portion of the financial market, mostly in some specific regions, but also worldwide – especially considering only the distribution of non-speculative transactions is concluded.
JEL codes: G01, G15, G21
Bánkuti, Gyöngyi (2021). "The Importance and Expansion of the Islamic Bank Sector" in Proceedings of International Conference of Eurasian Economies 2021, pp.146-153, Istanbul, TURKEY and ONLINE.
DOI: https://doi.org/10.36880/C13.02506
