The fall in the global financial system has led to intense questions about his radical defects and their future prospects Islamic aid. There is a great concern to bring reforms in the current monetary system. Deleveraging is the name given to this downward spiral. It is the forced reduction of the debt accumulated by households and financial institutions . This leads to less control over market prices of the assets of its discharged . This accelerates deleveraging Islamic aid. Once this horrible cycle begins , reaches a point where even large monetary return for retaining Islamic aid.
Economic managers , in addition to good governance, the need to find new ways to combat such situations occur from time to time. Management training in the economy also needs a radical reform in this perspective. Islamic aid finance can help solve this crisis "Islamic aid".
One of the main causes of economic recession is when banks give money as a loan beyond without much caution , hoping to get a fixed interest of their clients who are borrowing . By lending money to banks boundless opportunity to make money on the money. So about money as a commodity and should be treated as an exchange -based Islamic aid finance goods and services. This accumulated by the bank's money is also used in markets give more money for more loans and receive money through interest "Islamic aid".
It turns out that some people who take loans, but your business or Flops stop doing good enough to repay the loan with interest, so they have to retire your mortgage or leave their property confiscated . Waste of money led to the loss of purchasing power. The market is a general decline in economic activity when people lose purchasing power "Islamic aid".
On the other hand , those who take loans from banks and run your business successfully , they charge on their products or services in the additional amount of interest you have to pay for the banks. Thus, customers get . This leads to inflation. Bank achieved again bubble accumulating money to be operated more . This leads to the global downturn in economic activity , although some must prosper "Islamic aid".
This is the main reason behind the financial crisis in the past decade, according to economists . This was the result of the lack of good governance of the current financial system. Prof. John Gray, of the University of Oxford called "virtual financial economy " which has a huge capacity to disrupt the current funding , watching Barings , the oldest British banks , default 1995. James Robertson believes that this system of money and finance is not fair. is destructive to the environment and economically inefficient. He was concerned about generating money on the money. He says cash generation should be against the real goods and services .
The solution lies in the Islamic aid system of finance. But most important is the training of cadres must be oriented to learn proper practice . Money is not a commodity , according to Islamic aid finance , but a means for the exchange of goods and services. When ready to be taken , it may be because the investment and the creditor and the receiver of the money may share profits and potential losses. This way , both parties will be partners in a joint venture and generate real money trade in goods and services.
This is what the system wants to establish Islamic aid finance in the economy. Islamic aid finance differs in two ways:
• It focuses on real goods and services .
• a reasonable flow of money is provided through the sharing of profits and losses
This gives great stability to the economy . Even if the economy goes into recession, the financial aid based on loss distribution warranties accumulating operators money through interest system , thus minimizing the risk of default and bankruptcy and profits Islamic aid.