Would Islamic financial system be able to prevent the current global Dissertation

Would Islamic financial system be able to prevent the current global financial crisis Discuss - Dissertation Example ided direct effects of the global financial crisis of 2008 because the crisis did not occur in their financial markets.5 Whether or not Islamic banks were more stable, or simply avoided the direct effects of the global financial crisis 2008, all indications are that Islamic banks apparently outperformed conventional banks during the global financial crisis. Given the differences in risk taking and discipline in conventional banking and Islamic banking and differences in performance during the global financial crisis 2008, this research paper investigates whether or not Islamic banking systems provides a model of banking that would have averted prevented the global financial crisis of 2008. ... 2006) Ownit Mortgage, Part-Owned by Merrill, Shuts Down, available at; http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKO4CvD700gI 18 See also Ben Bland (Jul 2007) Bear Stearns hedge funds wiped out, available at; http://www.telegraph.co.uk/finance/markets/2812344/Bear-Stearns-hedge-funds-wiped-out.html 18 1.2. Research Questions____________________________________________________9 1.3. Aim and Objectives____________________________________________________9 1.3.1. Aim__________________________________________________________9 1.3.2. Objectives_____________________________________________________9 1.4. Significance of the Study________________________________________________10 1.5. Purpose of the Study____________________________________________________11 1.6. Research Methodology__________________________________________________12 1.7. Organisation of the Study________________________________________________12 Chapter Two: The Global Financial Crisis 2008: Causes and Conseque nces__________14 2.1. Introduction__________________________________________________________14 2.2. Causes of the Global Financial Crisis 2008_________________________________14 2.3. Consequences of the Global Financial Crisis 2008___________________________20 2.4.Conclusion ___________________________________________________________22 Chapter Three: Islamic Banking: Principles, Policies and Practices________________23 3.1. Introduction__________________________________________________________23 3.2. Principles of Islamic Banking____________________________________________23 3.3. Practices and Policies __________________________________________________27 3.4. Conclusion