Seyed Abbas Mousavian: Difference between revisions

Mousavian identified several key factors essential for the development and implementation of Islamic financial instruments:

# Financial instruments must be defined and regulated in terms of standards of the Sharia and Imami jurisprudence.<ref>Mousavian and Tavhidi, Foundations of Islamic Finance, pp. 48-49.</ref>

# Beyond religious criteria and legal requirements and frameworks, factors such as accounting issues and trading risks must also be evaluated.<ref>Mousavian and Tavhidi, Foundations of Islamic Finance, pp. 48-49.</ref>

# Legitimacy and acceptability of these financial instruments, internationally and interdenominationally, are important and must be considered in such a way that these instruments are recognized as internationally legitimate and acceptable.<ref>Mousavian and Tavhidi, Foundations of Islamic Finance, pp. 52-58.</ref>

# The economic foundations of financial instruments must be taken into account. These are not the principles and criteria Sharia has prescribed for transactions. For example, in addition to the religious conditions and rulings governing leases, lease securities must be complied with other criteria to be efficient financial instruments. These criteria may be of those are considered in microeconomics or of those considered in macroeconomics. In microeconomics, say, these are must be observed: 1. Liquidity: the capacity of financial instruments to be liquidated and rapidly converted into money. 2. Efficiency: the relative superiority of certain financial instruments over similar instruments in fulfilling customers’ objectives and motivations. In macroeconomics also criteria such as financial instrument’s alignment with economic growth and justice must be observed.<ref>Mousavian, Islamic Financial Instruments, pp. 253-267.</ref>