European Central Bank published research about Islamic finance

<p>European Central Bank, Occasional Paper No 146, June 2013</p> <p>ABSTRACT</p> <p>Islamic finance is based on ethical principles in line with Islamic religious law. Despite its low<br> share of the global financial market, Islamic fi nance has been one of this sector&rsquo;s fastest growing<br> components over the last decades and has gained further momentum in the wake of the financial<br> crisis.</p> <p>The paper examines the development of and possible prospects for Islamic finance, with a special<br> focus on Europe. It compares Islamic and conventional finance, particularly as concerns risks<br> associated with the operations of respective institutions, as well as corporate governance. The paper<br> also analyses empirical evidence comparing Islamic and conventional financial institutions with<br> regard to their: (i) efficiency and profitability; and (ii) stability and resilience. Finally, the paper<br> considers the conduct of monetary policy in an Islamic banking context. This is not uncomplicated<br> given the fact that interest rates &ndash; normally a cornerstone of monetary policy &ndash; are prohibited under<br> Islamic finance. Liquidity management issues are thus discussed here, with particular reference to<br> the euro area.</p> <div> <div>Source:&nbsp;</div> <div> <div> <p><a href="http://www.ecb.europa.eu/pub/pdf/scpops/ecbocp146.pdf" title="http://www.ecb.europa.eu/pub/pdf/scpops/ecbocp146.pdf">http://www.ecb.europa.eu/pub/pdf/scpops/ecbocp146.pdf</a></p> </div> </div> </div> <div> <a href="http://www.facebook.com/plugins/like.php?href=http%3A%2F%2Fwww.islamicfinance.de%2F%3Fq%3Dnode%2F5399&amp;layout=button_count&amp;show_faces=false&amp;action=like&amp;colorscheme=light&amp;width=100&amp;height=21&amp;font=&amp;locale=" title="I Like it" rel="nofollow" target="_blank"><span>Facebook Like</span></a> <a href="http://www.islamicfinance.de/?q=node/5399" title="Plus it" rel="nofollow" target="_blank"><span>Google Plus One</span></a> <a 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