The fundamental root cause of most financial crises in the world is directly or indirectly connected to easy and low-cost debt financing.
The view was expressed at an international seminar on 'Islamic Finance and Sustainability Nexus', organised by the Department of Finance, University of Dhaka, and INCEIF University, Malayasia in association with the Academy of Business Professionals (ABP) at Dhaka University on Sunday.
The seminar was chaired by Prof Dr M Jahangir Alam Chowdhury, Chairman of the Department of Finance, University of Dhaka, said a press release.
The keynote speakers include Prof. Dr. Obiyathulla Ismath Bacha and Assistant Professor Dr. Zhang Hengchao (Ali Zhang) of the School of Graduate and Professional Studies, INCEIF University.
Although classical Islamic finance is based on trust, Professor Bacha stated, emphasising the importance of modified forms of Islamic finance (Murabaha and Mudaraba) for a sustainable financial system in the world.
In his speech, Dr. Zhang Hengchao (Ali Zhang) shed light on "Dynamic Effects of Islamic Finance and Corruption on Environmental Quality in Malaysia".
He explored the growing potential of Institutional Quality and Islamic Finance in ensuring environmental sustainability (carbon dioxide emissions) in Malaysia.
A society flooded with corruption could be healed by introducing Islamic finance, and the impact was found to be the same as enforcing anti-corruption measures, he observed.
Inaugurating the seminar, Prof Dr. M. Jahangir Alam Chowdhury emphasized the unique social perspective of Islamic finance, which prioritizes ethical conduct, profit-sharing, and community development, making it a valuable tool for sustainable growth.
The seminar brought together renowned academics, industry experts, and practitioners to explore the growing convergence between Islamic finance principles and sustainability practices.
The event aimed to foster dialogue, share best practices, and identify innovative solutions for promoting financial inclusion and environmental responsibility.
Professor Dr Muhammad Saifuddin Khan, Research Director, Department of Finance, DU introduced the Keynote speakers.
Prof Dr Mahmood Osman Imam, FCMA, Department of Finance, DU, and Vice-Chairman, Academy of Business Professionals (ABP), delivered the concluding speech of the seminar.
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