Depository institutions: reforms along the lines of Islamic banking principles (Ph.D. Dissertation)

The work discusses the important role of depository institutions in Islamic banking. The author first points to debt contracts as a most useful tool of these institutions but affirms that such instruments are risky and contribute to economic instability, especially when a composite of the debt of the country, institutions, and individuals is considered. The writer suggest a fundamental reform in the depository institutions' daily practices but notes that limiting such reform to supervisory and regulatory measures, albeit necessary, is not enough and may be precarious. The implementation of Islamic banking precepts applied to the reform process of depository institutions, particularly in the US, is the main thrust of the author's argument. To make the liability side of the depository institutions (commercial banks and savings and loan associations) based on the principle of sharing - equity instead of debt - will, according to author, eliminate any need for deposit insurance. To