Azernews.Az

The Vatican’s report calling on Western countries to apply the advantages of Islamic banking refers to the conclusions of Azerbaijani economist Vugar Bayramov, according to the Center for Economic and Social Development, which is headed by the pundit.
US and European banks, which sustained considerable losses in 2008, are facing the profitability problem in 2009 as well. Moreover, since the world financial crisis is aggravated by the interest-levying policies of banks, banking sector woes in Western nations are unlikely to subside any time soon, analysts say. In contrast, Islamic banks, which completed the year 2008 with profit, are maintaining their profits this year. It is for this reason that the Pope has called on the West to avail of the benefits of Islamic banking, referring to the Azerbaijani economist’s research.
The Vatican’s report noted that Islamic economies encourage people commanding financial resources to invest, which boosts economic development. Nonetheless, implementing a transition of the whole capitalist system to Islamic economy is a difficult objective. The Western economic system has long been liberal, and, given that banks are lending heavily based on the existing system, eliminating it would be a daunting task.
The report, quoting Bayramov’s conclusions, said that, though Islamic banking elements cannot be applied in the West in full, establishing a mixed financial system in the developed countries could prevent the emergence of unforeseen crises in the global economy.*