Tag: Risk sharing

Islamic Finance

Funding Development Without Debt

Growth and development cannot happen without adequate infrastructure. Yet,  with inadequate domestic savings and capital formation, the financing of development infrastructure becomes a huge challenge for developing countries.  They often have little choice but borrow ...
Islamic Finance

Credit-Risk Sharing in Islamic Banking

Risk-sharing is a well-known principle in Islamic finance, which predominantly deals with equity-based transactions, namely mudaraba and musharaka.  While it is practically absent in the banks’ financing instruments, risk-sharing has been around in the Islamic deposit market for ...