Sukuk set to be law before next Budget
- Story by: Stefanie Ives
- Magazine: FinancialAdviser
- Published Thursday , March 20, 2008
Mr Bhatti said the sector could flourish in light of global credit turmoil as the ethical structure of Islamic finance ensured lenders looked to its responsibilities before issuing loans.
He said: “Capitalist economies are suffering severe liquidity shortages due to the global credit crunch some of which is due to irresponsible lending and the gambling of customers’ money.
“Islamic finance is the perfect antidote to this, because it forces banks to act more responsibly and with greater prudence. It does this by balancing the risks between banks and their customers, and through an insistence that all transactions must be supported by tangible assets.”
The government said it remained committed to examining the issuing of Sukuks and would take legal powers to facilitate any potential future issuance in the Finance Bill 2008. The responses to the recently closed public consultation will be made public later in the summer.