Finance
in sentence
3564 examples of Finance in a sentence
Does Islamic
finance
really constitute a viable alternative financial system?
Not so long ago, Islamic
finance
was superficially dubbed a zero-interest-rate system that would lead to inadequate and inefficient resource mobilization and utilization.
There are two central precepts of Islamic finance: absolute prohibition on charging interest on financial transactions, and high moral standards on the part of lenders and borrowers.
Importantly, although interest is prohibited under Islamic finance, profit is not; the latter is derived from various arrangements that combine
finance
and enterprise.
In essence, this is a profit-sharing and risk-sharing system that is based entirely on equity
finance.
Islamic
finance
thus contrasts with the current dominant system based on interest-bearing debt, in which risks are theoretically transferred to debt holders, but in practice are socialized during crises.
Other things being equal, most economists will agree that debt
finance
leads to greater instability than equity
finance.
It follows from the second major tenet of Islamic
finance
that if people adhered strictly to its ethical requirements, there would be fewer moral-hazard problems in Islamic banking.
If the ethical values in Islamic
finance
– grounded in sharia religious law – can further deter moral hazard and the abuse of fiduciary duties by financial institutions, Islamic
finance
could prove to be a serious alternative to current models of derivative
finance.
Moreover, the basic tenets of Islamic
finance
force us to re-think the ethical basis of modern monetary arrangements, which have evolved into a global reserve-currency system founded on fiat money.
As the Islamic world grows in stature and influence, Islamic
finance
will become a formidable competitor to the current financial system.
The world would have much to gain if the two systems were to compete fairly and constructively to meet people’s needs for different types of
finance.
For example, Brazil’s government has promoted an “Investment Partnerships Program” to coordinate investments in the
finance
and transportation infrastructure sectors.
The key will be to
finance
projects mainly with government bonds, instead of bank credit.
This is small change in the grand scheme of global finance; but, given that many of these borrowers were in distress or default just a decade ago, and needed debt forgiveness, theirs is an especially impressive turnaround.
In the 1980s, Japan was not seen as a laggard but as a juggernaut who would soon dominate world markets in automobiles, semiconductors, electronics, even
finance.
For example, short-term funding markets involve the supposedly safe business of borrowing against the collateral of tradable securities, which is a mainstay of how broker-dealers
finance
themselves.
Is it still in its youth, cash-starved with more ideas than it can
finance?
Does it need $137 billion to engineer and
finance
a large-scale Apple TV that will be even more successful than iPhones and iPads?
Meanwhile, it can
finance
its next new thing from the cash that its great products will continue to generate.
But the eurozone’s rule against using the ECB to
finance
government spending bars this approach.
It is up to the IMF to find ways to
finance
countercyclical fiscal deficits.ampnbsp;
This could be done partly by enlisting sovereign wealth funds and partly by issuing Special Drawing Rights so that rich countries that can
finance
their own fiscal deficits could cede to poorer countries that cannot.
Though lower-value-added jobs in sectors like manufacturing shift to China, where labor costs are lower, jobs in higher-value-added sectors – such as technology, finance, media, and retail – flourish.
Farewell to the Neo-Classical RevolutionLONDON – The looming bankruptcy of Lehman Brothers, and the forced sale of Merrill Lynch, two of the greatest names in finance, mark the end of an era.
Industry will be left free, but
finance
will be brought under control.
The restructuring of economies away from
finance
will necessarily take some time.
We can start with a simple principle: We should strive not for maximum openness in trade and finance, but for levels of openness that leave ample room for the pursuit of domestic social and economic objectives in rich and poor countries alike.
China is one of the biggest purchasers of US Treasuries, and continues to
finance
US consumption and investment.
China may even help to
finance
the large infrastructure projects that Trump has promised, thereby reducing pressure on the US budget.
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