Given the characteristics of Islamic banking, the small and medium enterprises is an economic sector where Islamic banking could play a central role in giving a fillip to entrepreneurship. In short, Islamic banks can play a catalytic role in fostering economic development although it has been observed that, in practice, Islamic banks tend to favour short-term projects and trade finance which are less risky.
In particular, we have to weigh this cost against that of making an effort to invest in pre-empting the failure of the system in the very first place. The SDR, for instance, is not a cure-all for the international monetary system.