Summary of Can Islamic Banking Increase Financial Inclusion?

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Can Islamic Banking Increase Financial Inclusion? summary
Muslims are flocking to financial institutions, but the rise of Islamic banking might not be the reason.

Rating

7 Overall

8 Importance

8 Innovation

5 Style

Recommendation

Some Muslims may avoid formal banking relationships to keep from running afoul of Sharia, so the growing Islamic financial sector would seem a likely vehicle through which to serve currently unbanked Muslim consumers and businesses. But according to economists Sami Ben Naceur, Adolfo Barajas and Alexander Massara, there’s little evidence of a correlation between Islamic banking and Muslims’ financial inclusion. While its topic is weighty, the report suffers from a somewhat muddled and disorganized presentation. Nonetheless, getAbstract recommends it to bankers and economists for its insights into the Muslim world’s complicated relationship with banking.

In this summary, you will learn

  • How Islamic banks affect Muslims’ financial inclusion
  • How the Islamic financial sector could bring more Muslim consumers and businesses into the financial system
 

Summary

International efforts to include more of the world’s unbanked citizens in the financial system, thereby optimizing global economic growth, run up against the issue of “voluntary exclusion.” More than half of all adults on the planet don’t have bank accounts, and 5% of them cite religious reasons for...
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About the Authors

Sami Ben Naceur, Adolfo Barajas and Alexander Massara are economists at the International Monetary Fund.


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