Identification of the Strengths and Weaknesses of the Conventional and Islamic Financial System during the COVID-19 Pandemic
DOI:
https://doi.org/10.24203/ajbm.v8i5.6416Keywords:
conventional economics, Islamic economics and finance, COVID-19Abstract
In October 2020, the number of people infected with the corona virus reached cumulatively 2 million cases and over 130,000 deaths, which shows that the economic implications of the pandemic crisis continue to complicate the economic and financial situation of the global financial system and national systems. Everything points to the fact that the virus will continue to persist. With the continuous expansion in Africa, Asia, Latin America, but also Islamic countries, the same economies are trying to stop the consequences that the COVID-19 pandemic brings with it. Accordingly, the subject of the research is to identify the strengths and weaknesses of the conventional versus Islamic financial system at the time of COVID-19. Having in mind the above, the main goal of the study is to investigate and identify the Strengths and Weaknesses of the Conventional and Islamic Financial System during the Covid Pandemic -19. The author came to the conclusion that during the global financial crisis of 2008 and the time of the pandemic of December 2019, the Islamic financial system showed better performance, in terms of better protection against certain risks and the fact that financial activities and business financial market are conducted in compliance with Sharia principles. Also, the author is of the opinion that if we overcome this crisis, we must learn and work both in terms of potential preventive measures against the pandemic, and in improving sustainable economic development before it is too late, whether it was a conventional financial system or Islamic. Secondary data collected from relevant sources will be used (desk research). In addition, other methods stand out: methods of analysis and synthesis, generalization and abstraction, methods of systematized approach (holistic approach), classification and comparison, and methods of induction
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