Risk Management Of Islamic Finance And Analysis The Program Of Its Development In Xinjiang

Islamic banking and finance, in its current form, is a relatively new industry. Its current asset base of one trillion USD is experiencing annual growth of 15-20 percent. It is categorized by being interest free and depends largely on the principles of Islamic Law (Shari'ah). The Islamic financial system is based on real economic activity, the bank and its customers relationship is cooperation, joint venture relationship, to a certain extent, this relationship inspired each party's enthusiasm.In the foundation of the domestic and foreign relative research, first this thesis will provide a brief introduction to the industry in general; analyze its financial thought and feature. Secondly, in this new role, the relationship between bank and the client transformed into contractual business partnership, and this relationship improved the small businessmen and small and medium-sized entrepreneurs'position, this has solved the financing difficulties of small and medium enterprises to some extent. By studying the Islamic financial instruments, the article point out another enterprises financing method. Furthermore, this thesis will explain the primary risks associated with the unique Islamic instruments and analyze the innovation of product. The growth of Islamic finance largely relies on innovations in Shari'ah-compliant products for investment and risk management purposes. Finally, combined with the situation of geographic location, local policy and religion of Xinjiang, through the studying of the development of Islamic finance in other countries or cities, analyzing the the program of the development of Islamic finance in Xinjiang.