(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