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Volume 3, Issue 6 (5-2014) |
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The Analysis of how Islamic banking is related to
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Abstract: (22669 Views) |
| Abstract However, relation between conventional banking and real economy is not necessary, which means that may or may not be related to the real economy, the relation between Islamic banking and real economy is necessary. Accordingly, resource allocation to conventional banking in case which there no guarantee and trust is for return of net resource plus interest in form of usury loan, make no anxiety neither for bank nor depositors. Of course it does not mean that conventional banking and real sector of the economy do not have any relation at all. Undoubtedly, a part of economic development in west is indebted to their banking system. therefore analyzing and theoretical explanation of how relation between Islamic and conventional banking systems could help understanding of these two systems in fields of mobilization and resource allocation and the effects which could affect the advancement, growth, economic stability and controlling of economic fluctuation in every society, has special importance. This paper using descriptive methodology and investigate this hypotheses that Islamic banking in mobilization and allocation of resources is in relation with the real sector of the economy. Results suggest that all legal contracts used in the mobilization and allocation of bank directly or indirectly linked to the real economy and if properly implemented, Will result in Growth, development and economic stability in different economic sectors. |
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| Keywords: Islamic Banking, Exchange contracts, Participation contracts, the real sector of the economy |
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Full-Text [PDF 294 kb]
(2711 Downloads)
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Article type: Research |
Subject:
General
Received: 2015/08/23 | Accepted: 2015/08/23 | Published: 2015/08/23
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