Purpose

This paper aims to compare products traded in secular and Islamic banking environments prior to the credit crunch of 2007–2008; to locate the comparison in a Schumpeterian model of creative destruction of dynamic innovation in the capital markets; and to evaluate the implications for diversity of investor product choice.

Design/methodology/approach

Financial products are critiqued using qualitative criteria, including underestimation of risk implicit in mortgage-backed securities and securitisation, excessive speculative activity in credit default swaps and the magnification of leverage and volatility. Comparable Islamic products are considered for the extent to which they facilitate the same precursors of market crises.

Findings

Innovation in secular financial markets has traditionally led to asset bubbles, underestimation of risks and market exuberance. Islamic banking constrains creativity by prohibiting risk transference and disconnection of financing activity from social context and economic purpose. As such, the latter reduces Schumpeterian creative destruction but at the cost of reduced investor choice and market liquidity. Restriction of the reallocation of risk between those who do not wish to hold it and those who do dampens innovation but would have prevented the trading of products which contributed to the credit crunch.

Originality/value

The constraining effect of Islamic banking upon creativity and innovation is considered alongside its capacity to reduce market volatility, speculation and systemic instability. Schumpeterian theory deepens the analysis in terms of the drivers of innovation and market collapse.

中文翻译：

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熊彼特的创造性破坏和 2007-2008 年的信贷紧缩：伊斯兰银行业的视角

目的

本文旨在比较 2007-2008 年信贷紧缩之前在世俗和伊斯兰银行环境中交易的产品；将比较定位在资本市场动态创新的创造性破坏的熊彼特模型中；并评估对投资者产品选择多样性的影响。

设计/方法/方法

金融产品使用定性标准进行批评，包括低估抵押贷款支持证券和证券化中隐含的风险、信用违约掉期中的过度投机活动以及杠杆率和波动性的放大。可比较的伊斯兰产品在多大程度上促进了市场危机的相同前兆。

发现

长期金融市场的创新传统上会导致资产泡沫、风险低估和市场繁荣。伊斯兰银行业通过禁止风险转移和将融资活动与社会背景和经济目的脱节来限制创造力。因此，后者减少了熊彼特式的创造性破坏，但以减少投资者选择和市场流动性为代价。限制那些不想持有风险的人和那些愿意抑制创新但会阻止导致信贷紧缩的产品交易的人之间的风险重新分配。

原创性/价值

伊斯兰银行业对创造力和创新的限制作用与其减少市场波动、投机和系统性不稳定的能力一起被考虑。熊彼特理论深化了对创新和市场崩溃驱动因素的分析。