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ISLAMIC FINANCE IN THEORY AND PRACTICE
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ISLAMIC FINANCE IN THEORY AND PRACTICE
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Book Chapter
ISLAMIC FINANCE IN THEORY AND PRACTICE
2010
Overview
What is Islamic finance? Definitions range from the very narrow (interest-free banking) to the very broad (financial operations conducted by Muslims). A useful definition is the following: Islamic financial institutions are those that are based, in their objectives and operations, on Islamic law (the Shariah). They are thus set apart from “conventional” institutions, which have no such preoccupations. This definition goes beyond simply equating Islamic finance with “interest-free” banking. It allows operations that may or may not be interest-free, but are nonetheless imbued with certain Islamic principles to be taken into account: the avoidance of riba (in the
Publisher
Edinburgh University Press
ISBN
0748627766, 9780748627769
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