Download or read book Monetary Operations and Islamic Banking in the GCC written by Ms.Ritu Basu and published by International Monetary Fund. This book was released on 2015-11-09 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: The assessment provides evidence of market segmentation across Islamic and conventional banks in the Gulf Cooperation Council (GCC), leading to excess liquidity, and an uneven playing field for Islamic banks that might affect their growth. Liquidiy management has been a long-standing concern in the global Islamic finance industry as there is a general lack of Shari’ah compliant instruments than can serve as high-quality short-term liquid assets. The degree of segmentation and bank behavior varies across countries depending on Shari’ah permissibility and the availability of Shari’ah-compliant instruments. A partial response would be to support efforts to build Islamic liquid interbank and money markets, which are crucial for monetary policy transmission through the Islamic financial system.This can be achieved, to a large extent, by deepening Islamic government securities and developing Shari’ah-compliant money market instruments.

Download or read book Monetary Operations and Islamic Banking in the GCC written by Ritu Basu and published by . This book was released on 2017 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: The assessment provides evidence of market segmentation across Islamic and conventional banks in the Gulf Cooperation Council (GCC), leading to excess liquidity, and an uneven playing field for Islamic banks that might affect their growth. Liquidiy management has been a long-standing concern in the global Islamic finance industry as there is a general lack of Shari'ah compliant instruments than can serve as high-quality short-term liquid assets. The degree of segmentation and bank behavior varies across countries depending on Shari'ah permissibility and the availability of Shari'ah-compliant instruments. A partial response would be to support efforts to build Islamic liquid interbank and money markets, which are crucial for monetary policy transmission through the Islamic financial system.This can be achieved, to a large extent, by deepening Islamic government securities and developing Shari'ah-compliant money market instruments.

Download or read book An Overview of Islamic Finance written by Mr.Mumtaz Hussain and published by International Monetary Fund. This book was released on 2015-06-02 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic finance has started to grow in international finance across the globe, with some concentration in few countries. Nearly 20 percent annual growth of Islamic finance in recent years seems to point to its resilience and broad appeal, partly owing to principles that govern Islamic financial activities, including equity, participation, and ownership. In theory, Islamic finance is resilient to shocks because of its emphasis on risk sharing, limits on excessive risk taking, and strong link to real activities. Empirical evidence on the stability of Islamic banks, however, is so far mixed. While these banks face similar risks as conventional banks do, they are also exposed to idiosyncratic risks, necessitating a tailoring of current risk management practices. The macroeconomic policy implications of the rapid expansion of Islamic finance are far reaching and need careful considerations.

Download or read book Islamic Banking and Finance written by Mondher Bellalah and published by Cambridge Scholars Publishing. This book was released on 2013-07-16 with total page 295 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic finance is founded on principles that constitute the guidelines governing any Islamic economic or financial dealings. Innovative financial engineering today constitutes one of the most critical needs of Islamic financial institutions. It represents the forces that will drive Islamic finance toward continuous growth and efficiency. The structuring of new financing and Shariah-complaint instruments plays an important role in the enhancement of Islamic financial markets, and Islamic risk management practices, combining basic Shariah-complaint financial instruments within Shariah structures to precise identified needs. The financial engineering process in Islamic finance is a process that is very sensitive and complex. It requires multidisciplinary considerations, involving deep knowledge of finance, economy, Shariah law and commercial law. Divergence of opinions among different Shariah scholars and boards, as well as the absence or lack of effectiveness of a central regulatory body, is perceived as an obstacle to the growth of investment confidence in Islamic finance. Hence, innovation, along with greater uniformity, is essential to make Islamic finance an international financial system and to attract a greater number of customers. This book addresses the main issues of concern within Islamic banking, namely the development of conceptual framework, the viability of interest-free banking, and the assessment of its performance and future. In a world where conventional interest-based finance is the dominant framework, Islamic banking faces many challenges that must be addressed. This book discusses these issues and challenges and will be of great interest to both researchers and practitioners. It analyses the past experiences of Islamic banks worldwide, and provides an objective assessment of their successes and failures.

Download or read book The Developing Role of Islamic Banking and Finance written by and published by Emerald Group Publishing. This book was released on 2014-07-10 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume highlights a vital developmental stage of Islamic Banking and Finance, focusing on regulatory aspects, regional case studies and International Financial Crisis impacts. It aims to help decision makers identify key factors for the real, sustained development of the Islamic Banking System, nationally, regionally and internationally.

Download or read book Monetary Operations and Government Debt Management Under Islamic Banking written by International Monetary Fund and published by International Monetary Fund. This book was released on 1998-09-01 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper outlines the recent progress in developing Islamic financial instruments for the management of monetary policy and public borrowing requirements and provides details on new instruments currently being developed in the Islamic Republic of Iran and Sudan. The paper also touches on the institutional arrangements for interbank market operations and the design of effective central bank credit facilities that are needed under Islamic banking to support the development and operation of these new instruments.

Download or read book Islamic Finance and Economic Development written by Amr Mohamed El Tiby Ahmed and published by John Wiley & Sons. This book was released on 2014-04-10 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive guide to mitigating risk and fostering growthin the Islamic financial sector Islamic finance, like conventional finance is a business offinancial intermediation. Its distinctive features relate tothe requirement that it abides by Shari'a rules that promotefairness of contracts and prevention of exploitation, sharing ofrisks and rewards, prohibition of interests, and tangible economicpurpose. Islamic finance should not fund activities considered“haram” or sinful. In Islamic Finance and EconomicDevelopment: Risk, Regulation, and Corporate Governance,authors Amr Mohamed El Tiby and Wafik M. Grais expound how thesedistinctive features bear on the opportunities and challengesfacing the Islamic finance industry’sdevelopment, risk management, regulation and corporategovernance. An experienced banker with various Middle East bankinginstitutions, notably as former Vice President at UAE UnionNational Bank and Mashreq bank, Dr. El Tiby offers aninformed perspective on corporate finance from within theIslamic finance industry. With a long experience in internationaldevelopment and finance, notably as former Director at the WorldBank and Founder and Chairman of a Cairo-based FinancialAdvisors company, Dr. Grais brings global financial experience onthe topics of financial systems assessments, corporate governance,Islamic finance, and public policy. Covers the history and basics of Islamic finance, and providesinsight into current conditions and future landscape Explores regulatory framework, including opportunities andchallenges for the industry’s development andmainstreaming Presents an approach to developing a systemic Shari'agovernance framework to govern operations in the Islamic finance industry

Download or read book Macroprudential Regulation and Policy for the Islamic Financial Industry written by Muhamed Zulkhibri and published by Springer. This book was released on 2016-05-25 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume aims to discuss the current research, theory, methodology and applications of macropreudential regulation and policy for the Islamic financial industry. Published in cooperation with the Islamic Research and Training Institute (IRTI), this book features contributions from a workshop presented in collaboration with the University College of Bahrain (UCB) in Manama, Bahrain, aimed to bring together experts in Islamic banking and regulation and financial economics. This resulting book sheds light on how macroprudential policy may be implemented in the Islamic financial system, and indicates current challenges and their effects on economic growth, financial stability and monetary regulation. Macroprudential policy is increasingly seen as a way of dealing with the different dimensions of systemic risk. But many central banks, bank supervisors and regulators have limited experience with macroprudential tools, particularly in the Islamic financial industry. Given the complementarities between monetary policy and financial stability, it appears that central banks would always play an important role in macroprudential policy. But how should macroprudential policy best interact with monetary policy? It is becoming more pressing for the central banks to conduct monetary policy in which its conventional banking system operates side by side with Islamic banking system. This question has received increasing attention in the research literature but there is much we still need to learn. This is why new insights from research on macroprudential policy – which has gained important impetus in recent years – are so valuable. Featuring contributions on topics such as macroprudential regulation, policy, tools and instruments; governance, systematic risk, monetary policy, and bank leverage, the editors provide a collection of comprehensive research covering the most important issues on macroprudential policy and regulation for the Islamic financial industry. This volume is expected to be a significant contribution to the literature in the field of Islamic finance and evaluation of public policies to promote the development for Islamic financial industry. It is also served as a key text for students, academics, researchers, policy-makers in the field of Islamic finance.

Download or read book Monetary Operations and Islamic Banking in the GCC written by Ms.Ritu Basu and published by International Monetary Fund. This book was released on 2015-11-12 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: The assessment provides evidence of market segmentation across Islamic and conventional banks in the Gulf Cooperation Council (GCC), leading to excess liquidity, and an uneven playing field for Islamic banks that might affect their growth. Liquidiy management has been a long-standing concern in the global Islamic finance industry as there is a general lack of Shari’ah compliant instruments than can serve as high-quality short-term liquid assets. The degree of segmentation and bank behavior varies across countries depending on Shari’ah permissibility and the availability of Shari’ah-compliant instruments. A partial response would be to support efforts to build Islamic liquid interbank and money markets, which are crucial for monetary policy transmission through the Islamic financial system.This can be achieved, to a large extent, by deepening Islamic government securities and developing Shari’ah-compliant money market instruments.

Download or read book Fintech Digital Currency and the Future of Islamic Finance written by Nafis Alam and published by Springer Nature. This book was released on 2020-11-28 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: The banking and financial landscape has been inundated with technology over the last decade, with FinTech, InsurTech and RegTech being just some of the new applications within finance. In the Gulf Cooperation Council (GCC), FinTech is yet to find its feet despite several digital transformation drives initiated by the regional governments in the UAE and Bahrain. In comparison to conventional finance, the use of FinTech within Islamic financial institutions (IFIs) in GCC countries is still in its very early stages. However, the potential disruption that technology may cause for the Islamic finance sector within this region cannot be underestimated. Aiming to highlight, examine and address key strategic, operational and regulatory issues facing IFIs as they make an effort to keep up with the FinTech revolution, this book explores the market positioning, product structure and placement, delivery channels and customer requirements within the GCC market. The authors evaluate the current situation and look forward to future regulation surrounding technology and financial institutions within the GCC. Scholars and students researching Islamic finance and financial technology will find this book an insightful and valuable read, as well as those interested in international finance more generally.

Download or read book Strategic Management in Islamic Finance written by Alexander Pock and published by Springer Science & Business Media. This book was released on 2007-12-05 with total page 231 pages. Available in PDF, EPUB and Kindle. Book excerpt: Alexander von Pock develops a holistic conceptual framework for identifying and testing key success factors of Islamic financial institutions. The framework integrates insights into the current practices of Islamic finance, a variety of theories – namely the market-based view, the resource-based view, and, to some extent, New Institutional Economics approaches – as well as previous research from the fields of strategic management and economics. The author is testing the theoretical framework empirically in a survey of 36 major Islamic financial institutions based in the Gulf Cooperation Council area and in Malaysia.

Download or read book The GCC Banking Sector written by Abdullah Al-Hassan and published by International Monetary Fund. This book was released on 2010-04-01 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we analyze the evolution of the Gulf Cooperation Council (GCC) banking sectors in the six member countries including ownership, concentration, cross-border linkages, balance sheet exposures and risks, recent trends in credit growth, and financial soundness. We identify risks to the banking sector's financial stability in the context of the current global crisis and their mitigating factors.

Download or read book Islamic Banking and the Global Financial Crisis written by Faisal Alqahtani and published by . This book was released on 2016 with total page 223 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2007/08 Global Financial Crisis (GFC), which was triggered in the American mortgage market in 2007, had unforeseen consequences that are considered to be the worst since the Great Depression of the 1930s. The GFC did not remain within the American banking sector but swiftly spread to other segments and other parts of the world because of globalisation. For example, it caused another severe crisis on the other side of the Atlantic, with European governments announcing that they would provide Greece with urgent financial aid to stop it from going bankrupt, and the country is still struggling not to default on its massive debts. Despite the damage that the GFC caused and left on the global banking sector, Islamic banking continued to grow, with an average annual growth rate in the Gulf Cooperation Council (GCC) region of 25% between 2000 and 2012. This rapid growth has led many advocates of Islamic finance to have the confidence to propose that Islamic banking is a viable alternative to conventional banking. This thesis investigates empirically these arguments, taking into consideration the direct and the indirect exposure of the GFC using a variety of formal financial and econometric tests. The thesis evaluates the operating performance, efficiency and financial stability of Islamic and conventional banks by means of financial ratios, Data Envelope Analysis (DEA), Distance to Default and Z-score, respectively, prior to, during and post the GFC. It investigates three time periods (prior, during and post the GFC) using samples ranging from 76 to 101 banks for each time period, across six Gulf Cooperation Council (GCC) economies, with data from 1998 to 2013. After controlling for ownership differences, internal factors, macroeconomic factors and unobserved omitted variables (varying across countries and years), the analysis shows that Islamic banks outperformed conventional banks during the GFC in terms of capitalisation, profitability, liquidity and cost efficiency. In addition, Islamic banks narrowed that inherent gap with conventional banks in terms of management quality, profit efficiency and financial stability, as measured by Z-scores. To the best of my knowledge, this finding can be considered some of the earliest empirical evidence supporting the theoretical argument that Islamic banks were less exposed to the GFC because of restrictions on dealing in non-complying assets, believed to be a main reason for the crisis, but not due to their use of profit-and-loss sharing (PLS) instruments. However, in the later stages of financial turmoil, when the initial financial shocks of the GFC spilled over from the financial sector into segments of the real economy, Islamic banks suffered even more than conventional banks due to their lax risk-mitigation tools, size disadvantage, rate-of-return risk and, more importantly , their reliance on debt-based instruments, which make Islamic banks less resilient to shocks. This resulted in Islamic banks losing their advantage in capitalisation, performing worse than conventional banks in terms of profitability, efficiency and financial stability. This finding suggests that Islamic banks are more sensitive to conditions of real economic sectors, whereas conventional banks are more vulnerable to global financial shocks. This thesis was limited by the absence of data regarding the Islamic services windows of conventional banks, the unavailability of data on the underlying assets of Islamic banks, and finally the use of accounting-based data, with the exception of using market-based Distance to Default (DD). These limitations made the modelling and the subsequent inferences a very challenging assignment, one which required the dedication of a significant amount of time and effort. Despite the limitations of the research, a number of recommendations can come out of the findings. Bankers at Islamic banks should focus more closely on economic conditions because the Islamic banking system is more affected by these than by global financial conditions. Furthermore, Islamic bankers should invest more in developing risk-management techniques, taking into consideration the unique needs of Islamic banks, to make their performance more stable and less risky. Finally, Islamic banks should consider growing in size to gain from the benefit of scale, as the data show that size is linked to superior performance.

Download or read book Islamic Finance in the Light of Modern Economic Theory written by Suren Basov and published by Springer. This book was released on 2016-12-01 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides researchers and students with an understanding of the basic legal tenets of the Islamic finance industry, studying the real economic effects of those tenets using the tools of the modern economic theory. Split into four parts, the book begins with an introduction to the history and a legal framework for Islamic banking, covering typical Islamic financial products such as Sukuk and Takaful and examining the structure of Islamic financial institutions. It then analyzes and discusses the Miller-Modigliani Theorem, which is of direct relevance to Islamic banks which are prohibited to charge interest and often have to rely of profit-loss sharing agreements. Part III of the book introduces the reader to modern mechanism design theory, paying particular attention to optimal contracting under hidden action and hidden information, and final part of the book applies the tools of economic theory to understand performance of Islamic financial institutions such as Islamic banks and Takaful operators. Islamic Finance in Light of Modern Economic Theory brings together all the necessary technical tools for analyzing the economic effects of Islamic frameworks and can be used as an advanced textbook for graduate students who wish to specialize in the area, as a reference for researchers and as a tool to help economists improve the design of Islamic financial institutions.

Download or read book Monetary Operations and Government Debt Management Under Islamic Banking written by International Monetary Fund and published by International Monetary Fund. This book was released on 1998-09-01 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper outlines the recent progress in developing Islamic financial instruments for the management of monetary policy and public borrowing requirements and provides details on new instruments currently being developed in the Islamic Republic of Iran and Sudan. The paper also touches on the institutional arrangements for interbank market operations and the design of effective central bank credit facilities that are needed under Islamic banking to support the development and operation of these new instruments.

Download or read book Islamic Banking in Practice Volume 1 written by Safdar Alam and published by Fidens Press. This book was released on 2019-06-19 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a sector where publications focus on theory, the Islamic Banking in Practice series concentrates solely on market practice. ​ The evolution of principles into practice is explained clearly and concisely. How is a simple sale of metal used to deliver a total return swap? The reader is guided, step-by-step, as to how financial institutions create products, whilst ensuring compliance with Islamic commercial law. ​ Written by a globally recognised practitioner and expert, structuring and transactions are presented and explained in detail, covering: Structuring Risk Pricing Execution Chapters include: Money markets FX transactions Using options, forwards, and swaps Structured deposits Total return swaps

Download or read book Shari ah Governance in Islamic Banks written by Zulkifli Hasan and published by Edinburgh University Press. This book was released on 2012-07-26 with total page 329 pages. Available in PDF, EPUB and Kindle. Book excerpt: An in-depth and insightful study of Shari'ah governance from a theoretical and practical perspective. Shari'ah governance has a profound influence on the day-to-day practice of Islamic Financial Institutions (IFIs) and each jurisdiction has adopted a different approach to developing a governance framework. Hasan Zulkifli reviews these pluralistic approaches and identifies best practice. With examples, case studies and practical discussions based on IFIs in Malaysia, the GCC countries of Bahrain, UAE, Qatar, Kuwait and Saudi Arabia and the UK. Topics covered include; The theory behind corporate and Shari'ah governance; The regulatory framework for Shari'ah governance; Shari'ah governance approaches; The Shari'ah Board's role and how it retains its independence, transparency and competence; The operational procedures of Shari'ah governance; The effectiveness of the Shari'ah Board and how it could be improved