In the middle of the growing crisis, Vatican newspaper launched a soft and subtle attack on the current global finance regime. Osservatore Romano says so persuasively that banks should look at the rules of Islamic finance to restore confidence amongst their clients at a time of global economic crisis.
“The ethical principles on which Islamic finance is based may bring banks closer to their clients and to the true spirit which should mark every financial service”
“Western banks could use tools such as the Islamic bonds, known as sukuk, as collateral”
“Sukuk may be used to fund the car industry or the next Olympic Games in London”
Regardless of whether the article truly deserve such a wide attention from Islamic finance industry and academia, the gesture is a bold one. While the world is struggling to cope with this stubborn crisis, Vatican proposes a sensible solution. Restore confidence by being ethical and close to the clients.
In retrospect, the world really needs to look more closely at the principles of Islamic finance. Its unconditional adherence to justice and abolition of interest merits more attention and appreciation. As has been proven by some notable cases, Islamic financial institutions have been thriving during bad and good times; they are able to escape financial crises and are growing between 10-15% annually in the last two decades.
If there are still people claiming Islamic finance as a mere rhetoric or failed experiments, then they must be blind or ignorant. Personally, I like to challenge the critics to observe how this unfolding crisis is going to affect Islamic finance. May be, it only times will tell; but, I assure you its not going to be very long!
Originally published on luqyantamanni.wordpress.com, March 17, 2009: view original.
