Islamic banks: the perfect solution to financial crises problems ( 2008 Global financial crisis as an example)

Abstract

Financial industry has known in the past few years a remarkable development of Islamic banks, especially after the failure of many conventional banks during the last financial crisis. This led many researchers to reexamine the efficiency of Islamic banks compared to conventional ones and to study their capacity to resist to the financial crisis. The objective of this paper is to clarify the importance of Islamic banks within international economy system. Moreover, to study the reasons, which made the resistance ability of Islamic banks to financial crisis. For doing that, we will discuss first the international financial crisis of 2008, its reasons and implications. Then we will see discuss the Islamic financial system and Islamic banks in theory and analyze the practice of IB in the international economy, how they succeed resisting financial crisis, and how they can be the solution to avoid future crisis