Islamic banking and finance: new perspectives on profit-sharing and risk

This book contains ten papers that were presented at the Fourth International Conference on Islamic Economics and Banking held at Loughborough University in August 2000. These papers consider the challenges faced by Islamic banking as well as the opportunities open to it in the twenty-first century. The first paper by Sami Ibrahim Al-Suwailem presents an Islamic perspective on decision-making under uncertainty. The paper by Habib Ahmed covers incentive-compatible profit-sharing contracts. The paper by Abdel-Fattah A. A. Khalil, Colin Rickwood and Victor Murinde provides evidence on agency-contractual problems in mudaraba financing operations by Islamic banks. Incentive-compatible constraints for Islamic banks are covered in the paper by Adiwarman A. Karim. The management of asymmetric information in profit/loss sharing contracts by informal risk capital investors is the main topic of the paper by Mohammad Abalkhail and John R. Presley. Kazem Sadr and Zamir Iqbal analyze the choice betw