Dr. Umer Chapra, a renowned international scholar on Islamic economics and finance, has said that there is a greater acceptability of Islamic finance in the world after the recent global financial crisis.
Delivering a lecture at SBP Karachi, Dr. Chapra said that Islamic Finance is now more respected all over the world because of several economic crises created by the global financial system in the last four decades. He said the recent financial turmoil was the most severe of all involving approximately $3 trillion to $4 trillion in bailout funds.

He said that primary cause of the recent crisis was excessive and imprudent lending by the banks which happened because of inadequate market discipline and lack of regulation and supervision. He gave a complete run down on how the international financial crisis evolved and highlighted salient features of the Islamic financial system which can prevent occurrence of such a crisis in future.

Dr. Chapra said that Islamic finance is still in its infancy stage but there is a lot potential of its growth. “Islamic financial system has showed the world why conventional system failed and this system can save the international financial system  Dr. Chapra is currently a Senior Research Advisor at Islamic Research and Training Institute (IRTI) of the Islamic Development Bank. Before joining IRTI, he worked as Senior Economic Advisor at the Saudi Arabian Monetary Agency where he served for 35 years. He has authored 10 books and monographs, and more than 70 papers and book reviews.