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Pressure for Islamic finance to undergo risky evolution

Posted on 09 February 2010

From Thejakartaglobe.com: Islamic banks are expected to move more deeply into riskier, equity-based financing as they seek alternatives to controversial debt mechanisms like the tawarruq , a well known Shariah scholar says.

Shariah banks have been reluctant to adopt equity models like the mudaraba to avoid taking on more risk, but there is growing pressure for the industry to reduce its reliance on debt instruments, he said on Monday………………………………….Full Article: Source

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