AME Info: The financial crisis has widened the global appeal of Islamic finance as western governments and institutions attempt to tap into deposits from the Islamic world by courting Islamic Financial Institutions (IFI), which remain relatively unscathed by the sub-prime mortgage crisis.
IFIs comply with Sharia, or Islamic law. One of the fundamental principles is that it is forbidden to sell what you do not own. So unlike other banks around the world, IFIs did not trade bundles of sub-prime mortgages and therefore have no direct exposure to the sub-prime mortgage crisis.
In fact, finance that complies with Sharia now accounts for around $700 billion of assets and is growing at 10 to 30 percent a year, according to Moody's Investors Services. >>> | Monday, February 2, 2009
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