We live in an ever-changing world where innovation is not a luxury but a must for survival. Virtually all of the economic growth since the 18th century is ultimately attributable to innovation (Baumol, 2002). Developing countries do not so much suffer from a lack of capital and physical inputs but rather from a general lack of innovative ideas. In this ever-changing world, the biggest risk is to stand still; but the stand-still strategy can cost dearly.
Islamic finance by nature is innovative. It links finance to the real world, which is dynamic and ever-changing by nature. Islamic finance there- fore helps the financial sector avoid the biggest risk it might face: trying to stand still.
From this perspective, conventional finance is inherently risky. Simply to lend money and collect more money is a repetitive stagnant transaction by nature.
Conventional finance lacks dynamism that characterizes the real world. It is no wonder that conventional banking has been described as “boring banking” (Nocera, 2012).
ISRA THOMSON REUTERS ISLAMIC COMMERCIAL LAW REPORT 2016 (Pg 110 - 112)
user_id not set
Unfortunately your account does not have the necessary access level to continue.
We would like to suggest that you upgrade account to enjoy more benefits on this website.