:: year 6, Issue 16 (summer 2013) ::
JMBR 2013, 6(16): 1-26 Back to browse issues page
The Role of Islamic Legal Institutions in Transformation of Financial Markets
Sayyed Kazem Sadr *
Abstract:   (3164 Views)

This article aims to demonstrate the impact of legal institutions and Islamic principles on structure and performance of financial markets. The main impacts include the ban on asset creation based on debt and its prescription according to real value. As a result, money market is omitted from the structure of financial markets and usury including bonds and their derivatives are made forbidden. On the contrary, asset market and capital expand and financial institutions such as banks, stock market, and central bank manage the financial policies instead of creating money and implementing monetary policies.

JEL Classification Codes: K1, K2, K4, G1

Full-Text [PDF 311 kb]   (1545 Downloads)    
Type of Study: Empirical Study |
Received: 2014/08/2 | Accepted: 2014/08/2 | Published: 2014/10/22

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year 6, Issue 16 (summer 2013) Back to browse issues page