Islamic finance beyond the financial crises

1/10/2016 0:00

Baghdad, Hussein al-Tamimi Tgb
Bring Islamic finance a lot of benefits after the expansion witnessed during the past decades, the stage and became attracts a lot of customers and compete with conventional banks having adopted sound institutions led regulation and oversight conscious joints Finance Management (according to an international expert in Islamic banking).

Member World Union of Arab Bankers d. Sadiq al-Shammari said the funding represents the most important stages of advancement of the Iraqi economy, pointing out that Islamic finance is supportive of the process of development of the various projects around the world and bring added value to the issue of financial inclusion across competing service providers to provide and providing alternatives for customers, and management by sound institutions led regulatory and supervisory rules and conscious. And easily access funding to everybody.

He noted in an interview with «morning» that funding through Islamic banks became bring added value through the use of post contracts and risk-sharing is a viable alternative and The effectiveness of the financing based on traditional debt, stressing that he can finance instruments that participation takes place the risk that the progress microfinance compatible with the provisions of Islamic Sharia law and the financing of small and medium-sized insurance companies and smaller to enhance access to finance. He noted that the financing instruments zakat and charity and endowment and loan Hassan could have talked integrated with risk-sharing tools to target low-income owners of the community in order to eliminate unemployment and fighting poverty or reduce it.

And the success of Islamic financing instruments in the face of the worst global financial crisis Shammari said, showed great strength and resilience in the face of the worst financial crises because they avoided excessive debt and speculation did not sell Malatmlk and this stimulated to increased demand for financing to buy homes, cars and other basic needs. It's also promised cash is a means of exchange and a store of values ​​and a tool to meet instead of several commodity, and relied on sheep base Balgrm (the principle of profit and loss) in accordance with the principle of abscess security and thus share the risk, and avoid the sale (of religion to religion) such as discount bills of exchange and others.

He noted that the funding target It is to set up a trading and financial system that is open, rule-based predictable, non-discriminatory and includes a commitment to governance and good governance, development and alleviation of poverty at the national and international levels, as well as addressing the special needs of least developed and include entry exports of least developed countries to exempt from customs tariffs markets Without quota enhanced program to ease the reality on the Heavily Indebted Poor Countries debt burden of debt.

Shammari between that address the special precautions to developing countries of the goals of the program funding, pointing out that the expansion of participation in the formal financial system, or to achieve financial inclusion is not a goal in itself but a means to an end Given the development of its important role in human development, and improve the standard of living and empower women and promote equality of opportunity and the financing of small and medium enterprises and to reduce poverty and support equality and secure the well-being and thus achieve a comprehensive and sustainable economic growth.

He said that the population steady growth requires sustainable development and improve the lives of individuals and the provision of living conditions appropriate for them, especially in poor areas, depending on the efficiency of the management of available resources with the provision of appropriate job opportunities, health, education and appropriate conditions to promote economic growth in these areas, noting that it requires the provision of adequate and regular and safe sources of energy through the management of available energy sources and conservation, allowing to fulfill the basic needs of the population, as well as in human infrastructure and poor communities in particular, the development of sites and providing them with the appropriate energy systems for the development of appropriate techniques for use in these areas.