Islamic banking and financing

Abstract

The financial crisis of 2007-2008 has caused huge loss to conventional banking and financing, however, the Islamic banking and financing are different with the conventional banking and financing. The difference like prohibition of interest may help Islamic banking and financing have a better experience during the financial crisis like the financial crisis of 2007-2008. Owing to it, this research is to find whether Islamic banking and financing have more chance than conventional banking and financing to survive from the financial crisis. Based on the data and related analysis, the financial market in US which are deeply influenced by financial crisis during the period of 2007-2008 still have a strong and positive impact on the Islamic financial market. And there is no difference between change in total return of Islamic market and change in total return of market in US during the financial crisis. However, based on data and analysis, prohibition of interest may help Islamic banking and financing survive from the financial crisis like the financial crisis of 2007-2008. And Islamic banking and financing have more profitability and less risk than the conventional banking and financing. Owing to it, Islamic banking and financing have more chance than conventional banking and financing to survive from the financial