The financial crisis of 2008 motivated a number of academic , practitioners and policymakers to question the fundamental stability of the conventional financial system. The established system is predominantly based on debt financing and laveraging with risk that covering would become excessive which, combine with the inherent asset-liability mismatch, combined with the solvency of financials institutions and overall financial stability.
In this volume, the authors make an important attempt to develop the building blocks of an Islamic fiancial system and elaborate on itsimplementation as a comprehensive system. They make a convicting case for the world to shed its reliance on debt, interest and leveraging, and revamp the global financial system to rely more heavly on equity financing, gennuine assets securitions linking the payoffs financial securitiesto the underlying assets. Ths would ensure promoting the wider risk sharing and a more stable financial environment.