International Congress on Eurasian Economies

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. Bánkuti Gyöngyi
Session : 5A Finance

The Importance and Expansion of the Islamic Bank Sector
Importance and expansion of the Islamic Bank Sector

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

Gyöngyi, Bánkuti (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

Full paper in PDF format.

Session 5A: Finance

Eurasian Economists Association Istanbul Beykent University Doğuş University Kyrgyz-Turkish Manas University