Evaluating the effectiveness of Islamic finance in promoting financial stability – Complete Phd and Masters Thesis

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Introduction

Islamic finance has gained significant attention in recent years as an alternative to conventional financial systems. The principles of Islamic finance are based on ethical and moral considerations, prohibiting the earning of interest (Riba) and investing in businesses that are considered Haram (forbidden). This study aims to evaluate the effectiveness of Islamic finance in promoting financial stability, particularly in the context of global financial crises. By examining the key mechanisms and instruments of Islamic finance, as well as its impact on financial stability, this research seeks to provide insights into the role of Islamic finance in creating a more stable and sustainable financial system.

1.1 Introduction

1.2 Background of the Study

1.3 Problem Statement

1.4 Objective of Study

1.5 Limitation of Study

1.6 Scope of Study

1.7 Significance of Study

1.8 Structure of the Thesis

1.9 Definition of Terms

Chapter 2: Literature Review

2.1 Introduction to Islamic finance

2.2 Principles of Islamic finance

2.3 Islamic financial instruments

2.4 Islamic banking and financial institutions

2.5 Financial stability and Islamic finance

2.6 Islamic finance in the global financial system

2.7 Impact of Islamic finance on economic development

2.8 Challenges and opportunities in Islamic finance

2.9 Regulatory framework of Islamic finance

2.10 Current trends in Islamic finance

Chapter 3: Research Methodology

3.1 Research design

3.2 Data collection methods

3.3 Sampling techniques

3.4 Data analysis methods

3.5 Research population

3.6 Research variables

3.7 Hypothesis development

3.8 Ethical considerations

Chapter 4: Discussion of Findings

4.1 Overview of the findings

4.2 Analysis of the effectiveness of Islamic finance in promoting financial stability

4.3 Comparison of Islamic finance with conventional finance

4.4 Impact of Islamic finance on financial crises

4.5 Role of Islamic finance in sustainable development

4.6 Policy implications of the findings

4.7 Recommendations for further research

Chapter 5: Conclusion and Summary

5.1 Summary of key findings

5.2 Implications for theory and practice

5.3 Contributions to existing literature

5.4 Limitations of the study

5.5 Areas for future research

Thesis Overview

Islamic finance is a rapidly growing sector in the global financial industry, with assets estimated to be worth trillions of dollars. Proponents of Islamic finance argue that its ethical and moral principles can promote financial stability and prevent crises, as seen in the aftermath of the 2008 global financial crisis. This thesis aims to evaluate the effectiveness of Islamic finance in promoting financial stability by analyzing its key mechanisms, instruments, and impact on the financial system.

The literature review will provide a comprehensive overview of Islamic finance, its principles, instruments, and regulatory framework. It will also examine the role of Islamic finance in promoting financial stability, economic development, and sustainable growth. The research methodology will outline the design of the study, data collection methods, sampling techniques, and data analysis procedures.

The discussion of findings will analyze the effectiveness of Islamic finance in promoting financial stability, comparing it with conventional finance and assessing its impact on financial crises. It will also discuss the role of Islamic finance in sustainable development and provide policy implications based on the research findings. The conclusion and summary will highlight the key findings of the study, implications for theory and practice, contributions to existing literature, limitations of the study, and areas for future research.

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