Implementing the Fundamental Principle of Islamic Finance PLS in Order to Reduce Moral Hazard on the Financial Services Market

Article OPEN
Dariusz Piotrowski;
(2014)
  • Journal: Acta Universitatis Nicolai Copernici, Ekonomia, volume 45, issue 1, pages 99-113
  • Subject: moral hazard, Islamic finance, financial advisory, profit and loss sharing
    • jel: jel:D82 | jel:Z12

Moral hazard is a situation where agent takes a risky actions, knowing that potential costs will be born by principal. In finance, moral hazard arises when advisers take risky decisions come to believe that they will not have to carry the full burden of potential loses.... View more
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