Islamic banking can help the world survive the financial crisis
"The opportunities offered by Islamic finance in promoting global financial stability and financial inclusion are worth assessment by the leadership of the G-20 countries," said Jeddah-based Islamic Development Bank (IDB) President Ahmed Mohamed Ali here yesterday.
Ali was echoing calls by the Islamic finance industry experts that the faith-based alternative investment model has something to offer to the global financial system, which has been teetering on the brink of meltdown following the impact of a credit crunch as a result of risky investments in junk derivatives such as subprime CDOs (collateralized debt obligations) in the US.
The IDB president told an Islamic Financial Architecture Colloquium hosted yesterday by Lord Mayor of the City of London Ian Luder at his official headquarters that it is time that the wider world should consider mainstreaming Islamic financial services. And the best way to do this is to accord the relevant Islamic finance stakeholders "observer status" within the framework of the G-20 and the expanded Financial Stability Forum of the International Monetary Fund (IMF).