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In the 2008 financial crisis, the financial industry of the Islam world has appeared relatively calm, a phenomenon worthy of investigation. For the past few years, Malaysia and Indonesia have been eager to develop in Islam finance. The Hong Kong Monetary Authority also strives to become the Islamic Financial Center in Asia. Taiwan’s Polaris International Securities Trust Co., Ltd. is the only local company to import Islamic bonds. This paper explores the religious and cultural backgrounds, the system, characteristics and risks of Islamic finance, in addition to the impacts of global financial crisis on various governments, enterprises, banks, and the niche of Islamic financial products for Taiwan’s banks, trying to better understand the regulations, risks and limitations affecting the financial investment in Islam, as well as the situations and experiences of different countries in developing Islamic finance. The result may offer a guideline for Taiwan’s banks in assessing the feasibility of developing Islamic finance.
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