Conference on Islamic finance held

LAHORE: Speakers at the inaugural day of two-day 2nd World Islamic Economic and Finance Conference highlighted the pros and cons of Islamic finance, a statement said on Saturday.

Various global experts on Islamic finance will present their papers in the eight sessions spread over two days, it added.

Keynote speaker at the inaugural session was Professor Dr Rodney Wilson, Emeritus Professor of Banking and Finance, Durham University.

Dr Wilson said that the Islamic finance is based on trust, as no collateral or property is attached, while giving loans. Some products developed by the Islamic banks do provide some safety for the loans, as the stocks brought from loans are held by the banks, but the value of those holdings does not cover the total loaned amount, he added.

Risks in Islamic banking are also for the shareholders, depositors, clients being served and also for the government, he said, adding that there are macroeconomic risks, including fiscal deficit, inflation and exchange rate volatility, too.

Professor Dr Mohammad Arif from Singapore highlighted the impact of monetary policy on Islamic finance. The State Bank governor, who was the chief guest on the occasion, could not make it to the conference. A Punjab minister instead attended the conference, as chief guest.

After the inaugural session, experts from across the world and Pakistan deliberated on different aspects of Islamic finance.