Sharing of Risks in Islamic Finance


  • Ahmet Sekreter International Black Sea University


Islamic Finance, Conventional Finance, PLS


For most of the people the prohibition on interest is the well known part of Islamic finance. Indeed, the concept of Islamic finance was not being discussed enough till financial crisis, after crisis it started to be seen as an alternative financial system for conventional finance. Sharing the risks is the main concept of Islamic finance and one of the main differences between conventional and Islamic finance. Depositors/savers do not bear any risk in conventional finance however Islamic finance has another solution which is called PLS (profit-loss sharing). Risks and profits between the parties involved in any financial transaction are shared by both financial institutions and depositors/savers with a pre-decided ratio.

Author Biography

Ahmet Sekreter, International Black Sea University

Chief Officer of International Relations Office

Lecturer of calculus


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Legal and Social Sciences, Economics