2

Making of the Crisis

3

From the Mortgage Crisis to the Global Economic & Financial Crisis

4

The Current Global Financial Crisis:The Deepest since World War II

5

6

Major Impacts

7

Slowdown in Economic Growth

8

Slowdown in Economic Growth

Fall in Export Demand and Commodity Prices

9

Sharp Drops in Private Capital Inflows

10

Interruption in Flows of Official Development Assistance (ODA)

11

+ €20 billion needed over the next 2 years to meet the target

Interruption in Flows of Remittances

12

2007 2008Billion $ 73 80

Growth % 24.7 10.3

2007 2008 200922 8 -(5 to 8)

Deterioration in Current Account Balances

13

Decline in global demand

Fall in oil & commodity prices

Credit crunch in export markets

Decline in Remittances

Slowdown in economic activity/growth

Decrease in imports(volume and import bill)

Current AccountBalance

Decrease in exports (volume and revenues) ( - )

( + )

Increase in Unemployment and Poverty

14

15

16

The Global Economic & Financial Crisis:The Real Causes

Common Views on the Causes

17

18

Implications for Islamic Banking

Islamic Finance as a Solution

19

20

Islamic Theory of Finance and the Global Financial Crisis

21

Islamic Theory of Finance and the Global Financial Crisis

22

Islamic Theory of Finance and the Global Financial Crisis

23

Islamic Theory of Finance and the Global Financial Crisis

24

Islamic Theory of Finance and the Global Financial Crisis

25

Islamic Theory of Finance and the Global Financial Crisis

26

Islamic Theory of Finance and the Global Financial Crisis

Concluding Remarks

27

Concluding Remarks

28

Concluding Remarks

29

30© 2007 SESRIC. All rights reserved.

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