ABSTRACT
Journal of Economic Literature
Volume 35, no. 1, March 1997
(An American Economic Association Publication)
Participatory Financing
through
Investment Banks and
Commercial Banks
by
A.L.M. Abdul Gafoor
Explores how Muslim capital holders wishing to earn an income
with their capital can be accommodated in the banking system, without bringing
the Muslim depositor into conflict with the rules of Islam. Focuses on
the case of investment in a project where neither the capital nor the return
are guaranteed. Develops a financing scheme, called participatory financing,
which is applicable to all projects. Describes how large investors can
be accommodated through investment banks and small investors through commercial
banks, by using participatory financing. Addresses some concerns with the
scheme and considers how the reality of inflation affects the scheme. Bibliography;
index.
Groningen: Apptec Publications
ISBN 90-802354-2-3, xii+98 pages, 1996
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