Author/Authors :
Büyükakın, Figen Kocaeli Üniversitesi - iktisadi ve idari Bilimler Fakültesi - iktisat Bölümü, Turkey , Bilal, Ersan Medeniyet Üniversitesi - Sosyal Bilimler Enstitüsü - iktisat Ana Bilim Dali, Turkey
Abstract :
Because of the integration of international financial markets countries suffer financial crisis through contagion and spillover effects. So, capital flows plays very important role for the existence of financial crisis in a globalised financial markets. In the last 20 years, different countries have tried to develop some instruments as a cure for financial crisis. IFFC (Interest-Free Financial Certificate) transactions are one of these instruments and it has been popular especially after 2000’s. This study aims at to discuss through experiences and evidences of countries- whether IFFC transactions are a cure for financial crisis or not. In this study, developments in financial markets, changes in financial structure, risks sourced by new financial system and reasons of recent financial crisis are analyzed with case study approach. Depend on the alteration, the place of interest-free finance is evaluted and the role of interest-free instruments, particularly IFFC, are argued with the question of ‘if IFFC can be used an alternative way against financial crisis or not’. It is concluded that, on one hand, the IFFC, interest-free instrument used widely both in our country and the world, contributes to the economy and financial system in macro and micro perspective, on other hand, offers to economy an alternative funding option against to financial crisis.
NaturalLanguageKeyword :
Financial crisis , interest , freefinance , sukuk
