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Articles

Islamic Banking Development and Access to Credit

Islamic Banking Development and Access to Credit

Islamic finance has considerably expanded with an increase of Islamic financial assets from $150bn in the mid-1990's to $1800bn at the end of 2013 (Kuwait Finance House, 2014), with Islamic banks being particularly active in Middle Eastern countries and in Southeast Asia but also in Africa (Sudan, Nigeria). An emerging literature has investigated the macroeconomic impact of Islamic finance and tend to support the view of a positive influence of Islamic banking development on economic development. A major potential effect of the growth of Islamic banking is its influence of access to credit, as countries with developed Islamic banking sectors are typically emerging countries in which access to credit is a major concern.

Islamic Banking