THE ROLE OF ISLAMIC FINANCE IN ENHANCING FINANCIAL STABILITY AND ECONOMIC INCLUSION IN THE POST-PANDEMIC ERA

Armitha Shireen

Abstract


 financial literacy, and product innovation. The study highlights policy implications for strengthening Islamic finance as a sustainable and inclusive financial system. Islamic finance has emerged as an ethical and resilient alternative to conventional financial systems, emphasizing risk-sharing, asset-backed transactions, and social justice. This study aims to examine the contribution of Islamic finance to financial stability and economic inclusion in the post-COVID-19 era. Using a systematic literature review of peer-reviewed articles published between 2018 and 2025, this study synthesizes empirical findings on Islamic banking, sukuk, zakat, and waqf. The results indicate that Islamic finance contributes positively to financial system resilience and inclusion, particularly in Muslim-majority countries. However, challenges remain in regulatory harmonization.


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References


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DOI: https://doi.org/10.3059/insis.v0i0.29246

DOI (PDF): https://doi.org/10.3059/insis.v0i0.29246.g14952

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