Financial crises and reasons for the relative financial stability of Islamic banking internationally

In Islamic banking, concessional facilities will be available to applicants in the form of contracts in accordance with Islamic Sharia. Islamic contracts are divided into two categories of interconnected contracts. Considering the necessity of using cooperative contracts of Islamic banking, when it approaches the optimal Islamic banking model The main body of this banking is based on cooperative contracts and exchange contracts are not used when they are not used. If Islamic contracts, especially cooperative contracts, are properly implemented, this type of banking has many advantages and disadvantages to conventional banking. Using These advantages can be achieved by matching the assets and liabilities of the banks. Lowering the financial leverage and borrowing. Automatic absorption and adjustment of real economic shocks. Establishing the link between the creation of money and the real production of the economy and reducing the activity of speculation and preventing the rapid and short-term withdrawal of assets. A country is largely capable of preventing financial instability and subsequent crises, especially if Islamic ethos are institutionalized in society.