Islamic Finance

Risk sharing or risk transfer?

In Islamic finance investors make funds available to entrepreneurs on the basis of risk sharing rather than by means of contracts that confine all risks of business enterprise to the entrepreneurs. Loan financing, unlike financing on the basis of risk sharing (equity financing), requires borrowers to guarantee not only the periodic payments interest, but also the repayment of the principal amount of the loan. The dates on which payments need to be made, as well as the amount of the payments are specified in advance.

To download the file in PDF, click on the link below:

Issues in Islamic and Conventional Finance – Chapter II

 

 

Author: Abdul Karim Abdullah

Writer and editor

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s