Fundamentals of Islamic Finance and Easy Access to Credit
- 1 Training and Research Unit in Economics and Management (TRU-EM) of the Felix Houphouet Boigny University, Abidjan, Cote d’Ivoire
Abstract
Our study therefore aims to inform and raise awareness of the advantages of Islamic finance with a view to an effective financial inclusion policy in Cote d’Ivoire. This consists of making known the fundamentals of Islamic finance by identifying the different sources of Sharia and their positioning in the Islamic legislative system. In addition, in terms of Islamic financial products, our choice is made on the Mudharaba contract which seems to us better suited particularly to the concerns of small entrepreneurs who struggle to have financing for their projects, because of the many constraints imposed by traditional financial institutions. For our analysis, we first used the results of the experiences of the Islamic Development Bank (IDB) around the world. In addition, data were also used from the International Monetary Fund (IMF), the World Banks (BM), Islamic Financial Services Board (IFSB), documentary research on all 57 member countries of the IDB including Cote d’Ivoire. Ultimately, it appears that conventional banking practices have shown that credit conditions are difficult to meet and interest rates high. This makes it difficult for the middle classes and private entrepreneurs to access legal sources of finance.
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