Islam and Financial Intermediation
Describes the Islamic attitude towards interest and profit and analyses the working of an Islamic banking system based on PLS. Discusses the impact of PLS on the mobilisation of savings, on the allocation of scarce resources through banks, on investments, on the effectiveness of monetary policy. Concludes that the system has the potential to be successful but some problems are still unresolved such as short-term finance, consumer credit and government credit. Analytical. For economists. Based on secondary sources. Documented.