If only the Islamic Principles were applied, Islamic Finance could have prevented the Subprime Crisis being sparked by the US Subprime mortgage, according to an Islamic scholar. but another scholar said that the US mortgage crisis is unthinkable under Islamic principles. Find out why...
“A crisis such as the
mortgage one would technically be unthinkable in the Islamic capital
markets sector because it would be against Sharia principles to sell a debt against a debt.”
The subprime mortgage crisis had seen trillions of dollars traded without the backing of assets, he said.
“If such transactions followed the Islamic finance model it would have easily prevented the current economic crisis.”
more...
“A crisis such as the
mortgage one would technically be unthinkable in the Islamic capitalmarkets sector because it would be against Sharia principles to sell a debt against a debt.”
The subprime mortgage crisis had seen trillions of dollars traded without the backing of assets, he said.
“If such transactions followed the Islamic finance model it would have easily prevented the current economic crisis.”
more...
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