The present paper aims at discussing the reasons why the crisis had less of an effect on the Islamic system and the countries that use it by presenting the origins and the development of the crisis and its results, supported by statistical data from 2008 to 2011.
It then attempts to give an overview of the Islamic financial system by focusing on its historical development and background and presents the basic notions with which it operates, as well as the mechanisms of the system. Using the main notions, the paper will analyse them in the frameworks of the crisis and will examine the extent to which the application of a certain key notion contributed to the ‘safety’ of the Islamic banking system against the crisis.
Lastly, the paper will draw on the conclusions reached by the above mentioned aspects and try to decipher the probability of the inclusion of certain elements of the Islamic financial system in the conventional capitalist economic system. A SWOT analysis is then used to determine the major points of this idea with regard to its strengths, weaknesses, opportunities and threats.
Renáta Janka Janka Tóth is currently completing her graduate studies at the University of Southern Denmark in Middle East Studies.