International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss


Islamic Banking: Insulation against US Credit Crisis
Hassan MobeenAlam, Hafsa Noreen, MonazzaKaramat, Muhammad Ilyas

During the last twenty years there has been an enormous increase in the global awareness and world-wide growth of Islamic banking governed by Islamic finance. In spite of severe aftershocks of recent global financial crisis stemming from subprime mortgage crisis of USA 2007-2008 that has threatened the stability of international finance, the Islamic banking system remained progressing at the uniform pace with growth rate of 8.85% and reaching assets worth USD 895 billion in 2010. This paper aims at highlighting the feasibility and reliability of Islamic banking as an interest free banking system with reference to its growth prospects, success factors and various sharia’t complaint financing modes in light of subprime mortgage crisis of USA.

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