Islamic Banking Focuses On Efficient Use Of Scarce Resources

Bandar Seri Begawan – The Islamic bank financial system has focused its vision to promote greater efficiency and equity in the use of scarce economic and financial resources with a view to fulfil all the genuine short, medium and long term financial needs of the economy.

Mr. Umer Chapra, Research Advisor of the Islamic Research and Training Institute of the Islamic Development Bank of Jeddah, at the International Conference on Islamic Banking and Finance yesterday.

“It also expands the system so that it involves the entire financial system of at least the Muslim world,” he said.

Talking about the topic 'Challenges Facing the Islamic Financial System', Mr. Chapra said the challenges depend on the disparity between the vision and the present position and progress that the bank has made so far.

He said that the progress includes where the bank has become a great deal of conceptual development and a great deal of institutional development.

Mr. Chapra said the challenge for the future is to remove the obstacles that hinder the systems expansion and development along the path of its vision and to create conditions that would enable the mudarabah and musharakah modes of finance to succeed now as they did in the classical period.

He further mentioned some needs to be done when circumstances have changed that is to resolve the unresolved fiqhi issues and create proper institutional infrastructure as well as provide protection to depositors. -- Courtesy of Radio Television Brunei 

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