Question

Is there any strengths of Islamic finance, in terms of system & operation, compared to conventional finance?

Answer 1

Strengths of Islamic finance compared to conventional finance are in the following points:-

1. In Islamic finance,Investments are approached with a slower, insightful decision-making process, when compared to conventional finance.

2. The conventional finance looks at making profit through interest payments and makes the beneficiary liable for any risk, while Islamic finance paves way for the sharing of profit/loss and risk involved in propositional manner.

3. During gfc Islamic banks are more cost efficient in compared to conventional banks

4. Through Islamic banks Financial inclusion can be promoted and bring a larger pool of savings in the local and global economy.