Islamic Finance Confronts Global Pandemic – Global Finance

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Islamic Finance Confronts Global Pandemic – Global Finance


How are Islamic banks affected by the pandemic? What are the specific challenges and opportunities they face? Here are a few takeaways from an April 21 online panel discussion organised by UK-based financial data firm Refinitiv.

The $2.4 trillion Islamic finance industrysome 1,400 institutions spread across 80 countries—faces unprecedented challenges driven by the global COVID-19 pandemic. “The present crisis is an economic crisis that will in turns affect the financial system. The magnitude will be very different from 2008 and will have to be managed differently. We have to think out of the box,” said Ayman Amin Sejiny, CEO of the Islamic Corporation for the Development of the Private Sector (ICD), a branch of the Saudi-based Islamic Development Bank Group dedicated to the private sector which covers 55 countries. Islamic banks and financial institutions emerged largely unscathed from the 2008 crisis thanks to prohibitions against speculation and risky asset classes but could see big losses soon because of the way the pandemic’s consequences are hitting the poor and small businesses especially
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