TITLE:
Fundamentals of Islamic Finance and Easy Access to Credit
AUTHORS:
Ousmane Diomande
KEYWORDS:
Islamic Finance, Islamic Banking, Classic Finance, Credit
JOURNAL NAME:
Theoretical Economics Letters,
Vol.10 No.4,
August
31,
2020
ABSTRACT: Our study therefore aims to
inform and raise awareness of the advantages of Islamic finance with a view to
an effective financial inclusion policy in Cote d’Ivoire. This consists of making known the fundamentals of Islamic finance by
identifying the different sources of Sharia and their positioning in the
Islamic legislative system. In addition, in terms of Islamic financial
products, our choice is made on the Mudharaba contract which seems to us better
suited particularly to the concerns of small entrepreneurs who struggle to have
financing for their projects, because of the many constraints imposed by
traditional financial institutions. For our analysis, we first used the results
of the experiences of the Islamic Development Bank (IDB) around the world. In
addition, data were also used from the International Monetary Fund (IMF), the
World Banks (BM), Islamic Financial Services Board (IFSB), documentary research
on all 57 member countries of the IDB including Cote d’Ivoire. Ultimately, it
appears that conventional banking practices have shown that credit conditions
are difficult to meet and interest rates high. This makes it difficult for the
middle classes and private entrepreneurs to access legal sources of finance.