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Islamic Finance Briefing - Categorized | Banking, Finance more

More equity funding seen as banks look beyond tawarruq

Posted on 09 February 2010

From Reuters: 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 prominent sharia scholar said on Monday.

Sharia 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………………………………….Full Article: Source

 
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Laxman - who has written 19160 posts on Opalesque Islamic Finance Briefing.


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