Some distinctive features of Islamic banking are reaffirmed: A close linkage between real economy and finance obviously holds in sharing based modes but also remains in case of fixed return Islamic modes of finance based on murabaha, etc. Islamic finance can meet all the transaction needs of the market. It does so more efficiently than conventional finance as it focuses on productivity of the project rather than creditworthiness of the borrower. By synchronizing entrepreneurs' payment obligations with revenue accrual, Islamic finance reduces instability in the financial market. Islamic banking is just whereas conventional banking is biased in favour of capital owners. 

The paper notes that wild exchange rate fluctuations hurt the small and weak developing countries, hence the need for regulation according to rules framed and enforced by an international agency under the UN system. Though the prohibition of interest goes a long way in curing the ills of contemporary finance, much more is to be done to arrive at a safer, saner world insofar as money and finance is concerned. 

Islamic economics sees man caring for others along with focusing on self-interest. The Islamic institution of waqf is a witness to the reality of individual behaviour with a social purpose. Morally inspired economic behaviour is well recorded today as well as widely reported from the past. Broadening the scope of such action is the need of the hour. 

Mr. Chairman, Ladies and Gentlemen

I am thankful to Harvard Islamic Finance Information Program for inviting me to be with you this morning. I also appreciate the special interest Directors Thomas Mullins and S. Nazim Ali took in this regard. 

Time is precious and holding the attention of this gathering of luminaries and eminent scholars for long would be difficult, so I wish to share with you some thoughts on two issues before concluding with some observations relating to Islamic Economics. Firstly, a reaffirmation of some distinctive features of Islamic banking and finance which can contribute to human felicity. And secondly, there are some worrisome aspects of modern finance, especially global finance, which call for attention.

Distinctive Features of Islamic Finance

Viability of Islamic Finance

Beyond Interest Free Economy

Premises and Promises of Islamic Economics