Islamic banks urged to show the way

Muslim presidents, prime ministers and princes on Monday called on the world to adopt Islamic financial practices to overcome the global crisis and urged Islamic banks to undertake “missionary work” in the west to promote shariah banking.

Almost every speaker at the opening of the fifth World Islamic Economic Forum (WIEF) in Jakarta lambasted the excesses of “irresponsible, unregulated western financial markets” for triggering the crisis, and touted shariah banking as a framework for a more stable global financial system.

But while Islamic banking could play a useful role, it would not be a “silver bullet” for the crisis. Bankers at the conference said greater standardisation of structures, improved transparency and more innovative products were needed for the industry to develop.