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Showing posts from October 23, 2012

Vatican Says Islamic Finance May Help Western Banks in Crisis - Bloomberg

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOsOLE8uiNOg

Vatican Says Islamic Finance May Help Western Banks in Crisis March 4 (Bloomberg) -- The Vatican said banks should look at the rules of Islamic finance to restore confidence amongst their clients at a time of global economic crisis. "The ethical principles on which Islamic finance is based may bring banks closer to their clients and to the true spirit which should mark every financial service," the Vatican's official newspaper Osservatore Romano said in an article in its latest issue late yesterday. Author Loretta Napoleoni and Abaxbank Spa fixed income strategist, Claudia Segre, say in the article that "Western banks could use tools such as the Islamic bonds, known as sukuk, as collateral". Sukuk may be used to fund the "'car industry or the next Olympic Games in London," they say. Pope Benedict XVI in an Oct. 7 speech reflected on crashing financial…