Islamic Banking and Finance in the European Union

Islamic Banking and Finance in the European Union

A Challenge

Studies in Islamic Finance, Accounting and Governance series

Edited by M. Fahim Khan and Mario Porzio

This timely book examines the authorization of Shari’ah-compliant intermediaries as either credit institutions or as investment companies in the European Union.

Chapter 14: Islamic Banking: Impression of an Italian Jurist

Pietro Abbadessa

Subjects: economics and finance, financial economics and regulation, islamic economics and finance, money and banking


Pietro Abbadessa The banking model (see above, Chapter 4) is totally different from the one adopted in non-Islamic countries, but does not lack an adequate competitive force on this account. Maybe it is true that ideally the object to be pursued is the development of a dualistic banking system, in which Islamic banks may co-exist with conventional banks and compete with them. Dr Fahim Khan (1986) has shown that it can not be taken for granted that the outcome of this competition would weigh in favour of non-Islamic banks. At any rate, in order to compare these two banking models – if it is necessary to clearly distinguish one from the other – two different institutional frameworks should also exist, both at the primary level and at the regulatory level, valid for the banks operating under the Islamic and the traditional paradigm respectively. Currently, however, this condition does not exist; therefore, reasoning about Islamic banking today forces us to constrain this experience within the cultural, juridical and technical categories which belong to conventional banking. And this is no easy task. From my juridical perspective, this chapter will try to explore to what extent, within the Italian legal system, it is possible to constitute a bank that, albeit not aiming to fully implement the programme traced by Dr Fahim Khan, internalizes, at least to some extent, the objectives characterizing Islamic banking. With regard to this issue, Alessandro Nigro (2006) has proposed a radical theory, according to which, in its present state, the Italian...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information