There seems to be an emerging consensus, reflected, inter alia, in statements by the Bank of England, that a period of 1-2 years is appropriate, this being the time it takes for a change in monetary policy to have the bulk of its effect in prices.
The UK’s Lord Turner has even questioned whether the activities of some investment banks have been, in his words, “socially useless”. The Islamic financial industry cannot stand apart from these developments. The fundamental question that the industry now needs to ask is: to what extent has the global financial crisis been a game changer for Islamic finance as well as for conventional finance?