GLOBALIZATION OF FINANCIAL MARKETS AND ISLAMIC FINANCIAL INSTITUTIONS

摘要: In this paper, I reflect on the implications of financial globalization for Islamic institutions in terms coordinates selected from both history and theory. present outline 18 th century case against commerce, 19 a central institution acting as lender last resort, modern theoretical developments finance insurance based law large numbers centered around notions arbitrage, naive efficient diversification risk, moral hazard adverse selection. argue that an informed understanding processes is necessary prerequisite charting out impact current institutions, perhaps more importantly, development future values assumptions. At same time, also deepens enriches our themselves, thereby, through their derivation, leads to closer more-informed reading canonical text itself. As such, question extent which aspects can be bracketed, lack closure what must mutually illuminating necessarily interdisciplinary enquiry. I. INTRODUCTION paper deal with institutions. practical level, one understand simply removal impediments international flow capital, use or currently existing banking concrete proxies institution. Even if begins at such subject inevitably goes beyond mere cataloguing changes