Standard & Poor's: Key Rating Factors For Islamic Banks - Although Sometimes Complex, Standard & Poor's Analyses Islamic Financial Institutions On The Same Basis As Conventional Financial Institutions, Says Anouar Hassoune.

Banker, The, February, 2003

The growth rate of Islamic banking services has outpaced that of "conventional" banking during the past decade, making it one of the most dynamic areas in international finance. The annual growth of Islamic financial institutions (IFIs) has been an estimated 10% in the Gulf and almost 15% worldwide over the past 10 years. IFIs' assets and funds under management are estimated at about $200-$300bn. Islamic banking activities are expected to grow even more rapidly in the foreseeable future.

IFIs comply with the rules and principles of Islamic economics and finance, and more generally with Islamic law - Sharia. Among these rules is the prohibition of the paying and charging of interest, considered as usury (riba), and the proscription of speculation (gharar). In...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.