This book aims to offer an insightful overview of the developments discussed during the 4th International Conference on Islamic Economics and Banking, which took place at Loughborough University, UK, from August 13 to 15, 2000. It delves into the performance, prospects, and challenges confronting the Islamic financial industry while emphasizing the opportunities presented by Islamic financial instruments as an alternative approach to financial intermediation.
Key topics covered in the book include decision-making under uncertainty, the role of social norms and trading rules in reducing moral hazard in Islamic financial products, the significance of incentive-compatible profit-sharing contracts, and the regulation of the stock market in an Islamic economy, among other relevant subjects. By exploring these themes, the book sheds light on the evolving landscape of Islamic finance and its potential in shaping a more equitable and robust financial system.
