The financial Tower of Babel: roots of crisis
International Journal of Islamic and Middle Eastern Finance and Management
ISSN: 1753-8394
Article publication date: 23 November 2010
Abstract
Purpose
The aim of this paper is to explore and discuss the causative factors of the current financial crisis from an Islamic perspective. This paper also examines Islamic finance as an alternative financial system and a potential long‐term solution to financial instability.
Design/methodology/approach
The paper provides descriptive, analytical and comparative analyses.
Findings
The paper offers insights into the causes of the current international financial crisis. It highlights an alternative and a solution to this dilemma in the form of Islamic finance and stresses the stability of the Islamic finance system.
Practical implications
The findings presented in this paper can be used by policy makers, regulators and practitioners in both the Islamic and conventional financial sector as they provides insights into factors that can insulate the market from future crisis. However, to expect a wholesale transformation to an Islamic financial system is idealistic.
Originality/value
This paper contributes to the understanding of Islamic finance principles and its value as a solution to the current and any future financial crises. A highly original conceptual idea is used in the metaphorical comparison to the Tower of Babel. The findings of this research will be of interest to western and Islamic financial practitioners, policy makers and academicians.
Keywords
Citation
Matthews, R. and Tlemsani, I. (2010), "The financial Tower of Babel: roots of crisis", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 3 No. 4, pp. 334-350. https://doi.org/10.1108/17538391011093270
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited