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Ethics in Islamic Finance

Opportunities and Challenges in Times of Economic Turbulences

  • Living reference work entry
  • First Online:
Handbook on Ethics in Finance

Part of the book series: International Handbooks in Business Ethics ((IHBE))

Abstract

Over the last decades Islamic finances and Islamic banking have been gathering momentum. As such, Islamic finances and Islamic banks have been trespassing the boundaries of Islamic countries and have arrived to conventional markets where they have been gaining attractiveness. Within a context of global interconnection and interdependence, alternative formulas have been rehearsed with the aim of reducing uncertainty and vulnerability. Islamic banking and finances as well as ethical banking share similarities. The public opinion has been increasingly demanding more transparency and accountability especially in the aftermaths of the 2008 financial crisis. Amidst this turbulent context, some experts have argued that Islamic finance could be an alternative to Western finance. As an alternative, it should not be seen as a risk for Western finances and conventional banking systems but as a complement which could contribute to increase the debate around ethics in finance. Through a higher level of consciousness and consensus around ethical practices, the current economic and financial context would increase their robustness and sustainability (also at social levels) by inhibiting speculative behaviours.

In considering these aspects, this entry aims at replying to the following questions: What are the main religious features characterizing and inspiring Islamic Banking (IB) and Islamic Financial Institutions (IFIs)? Why IFIs and IBs have been gathering momentum over the last decades? Are IBs and IFIs more resilient to crises? Are the ethical principles and practices guiding IBs and IFIs in line with the evolution of the conventional banking and financial industry? Where do they differ and which are the most relevant strengths and weaknesses? To what extent can IB and IFIs be considered as valid alternatives to increase the solidity and sustainability of the existing financial and economic markets?

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Author information

Authors and Affiliations

  1. Economics and Management, SUPSI, Manno, Switzerland

    Ivan Ureta

Authors
  1. Ivan Ureta
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Correspondence to Ivan Ureta .

Editor information

Editors and Affiliations

  1. ECRI Ethics in Finance Research Group, University of the Basque Country, Bilbao, Spain

    Leire San-Jose

  2. ECRI Ethics in Finance & Social Value, Deusto Business School, Bilbo, Vizcaya, Spain

    José Luis Retolaza

  3. University of Antwerp, Antwerpen, Belgium

    Luc van Liedekerke

Section Editor information

  1. ECRI Research Group, University of the Basque Country UPV/EHU, Bilbao, Spain

    Leire San-Jose

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Ureta, I. (2020). Ethics in Islamic Finance. In: San-Jose, L., Retolaza, J.L., van Liedekerke, L. (eds) Handbook on Ethics in Finance. International Handbooks in Business Ethics. Springer, Cham. https://doi.org/10.1007/978-3-030-00001-1_32-1

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  • DOI: https://doi.org/10.1007/978-3-030-00001-1_32-1

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  • Print ISBN: 978-3-030-00001-1

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