Studies in Islamic Finance, Accounting and Governance series
Edited by M. Fahim Khan and Mario Porzio
This book is a multidisciplinary volume, comprising of four parts. After a short introduction by the editors, outlining the theme of the book, Santarelli, a skilful scholar of legal history, deals with the common origin of Islamic and Western traditions in commercial and banking transactions, in a period in which Italian merchants and their organizations had been at the forefront of the post-medieval renaissance in trade and law (Part I). In Part II Gian Maria Piccinelli, Frank Vogel, Muhammad Fahim Khan and the young Valentino Cattelan present the main features of Islamic banking. They raise several doubts and different questions on the future development of Islamic banking in European Union. What will the next challenges be? Will the European banking framework be a suitable context for the development of Islamic financial intermediaries? Some questions have been answered in Part III and some others in Part IV. Part III deals with the challenges of the authorisation of Islamic banking in the European context. The first two chapters adhere to an economic approach (Claudio Porzio and Elisabetta Montanaro) and consider the profit- and loss-sharing mechanism but in different ways. The authors give a detailed analysis of Islamic banking activities, paying attention to either the profit-sharing approach and the main objectives of prudential regulation based on minimum capital requirements (Montanaro), or the profit- and loss-sharing mechanism and the current evolution of financial intermediary theory and supervision regulation (Porzio). In the same Part, when De Anca makes a comparison between responsible investment and Islamic...