Download or read book Participatory Islamic Finance written by Muhammad Nouman and published by Springer Nature. This book was released on 2023-05-08 with total page 259 pages. Available in PDF, EPUB and Kindle. Book excerpt: Participation in risk and reward, as an alternate to conventional risk-transfer finance, is important for achieving the higher ethical objectives of Islamic finance, called maqasid al shariah, and responsible finance in general. That is why participatory finance is advocated as the ideal form of financing and the essence of Islamic banking and finance. The Participatory Islamic Finance: The Ideals, Contemporary Practices, and Innovations presents a holistic view of both theory and practice of participatory models, constraints to its applications, success case studies of the participatory finance from multiple countries, and more importantly the recent innovations in participatory finance products. These new insights makes, the Participatory Islamic Finance: The Ideals, Contemporary Practices, and Innovations is an essential read and guide, for both Islamic finance academics and practitioners.

Download or read book Why Islamic Banks Tend to Avoid Participatory Financing A Demand Regulation and Uncertainty Framework written by Muhammad Nouman and published by . This book was released on 2018 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Participatory financing arrangements including Musharakah and Mudarabah are the essence of Islamic banking and represent the true spirit of Islamic banking and finance. Therefore, Islamic banks are expected to allow and promote participatory financing. In practice, they do not adopt participatory financing on the assets side due to several constraints. By far, the non-participatory financing arrangements, particularly Murabahah and Ijarah, are the most dominant modes of financing around the globe. Many authors have provided different explanations for the tendency of Islamic banks to avoid participatory financing. However, literature is divergent and the typology of the constraints to participatory financing is missing. Therefore, there is no unified understanding of the constraints to participatory financing. The present study employs insights form the extant literature using a systematic literature review and synthesizes a coherent participatory financing constraints framework using the thematic synthesis method to name and make sense of what makes participatory financing a less attractive option for Islamic banks. This study adds to the Islamic banking and finance literature by synthesizing the divergent literature, and conceptualizing a participatory financing constraints framework which can be used as a dependable framework for assessment in any related case study and policy implications. Moreover, it demonstrates an application of systematic review in Islamic banking research.

Download or read book Introduction To Islamic Finance written by Dimas Bagus Wiranatakusuma Genevieve G. Panerio and published by CV. AZKA PUSTAKA. This book was released on 2024-01-24 with total page 322 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of organizing economic activities in any nation is the production of products and services to satisfy human wants. In the modern era, however, where division of labor and specialization are on the rise, those who produce products and services are not typically the same as those who consume or use them. Consequently, it is necessary to substitute one commodity for another. Barter required a 'double coincidence of desires'; B needed to possess both what A desired and what A could offer in exchange. This arrangement restricted the types of transactions that could be conducted, occupied additional time that could have been spent on production, and impeded the specialization of production. The limitations that the barter system placed on human ambitions lead to the evolution of money.

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 Finance Risk Sharing and Macroeconomic Stability written by Muhamed Zulkhibri and published by Springer. This book was released on 2019-02-20 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: The concept of risk-sharing in financial and social contracts is one of the unique features of Islamic finance. Many theoretical studies generally claim superiority of an Islamic financial system based on pure equity and participatory modes of financing, while empirical studies provide mixed results. Studies and discussions are needed to fully understand how Islamic finance could contribute to the ongoing discussion of financial stability. Against this background, this book addresses various aspects of Islamic finance and the risk-sharing mechanism contributions to the overall macroeconomic and financial stability. Undoubtedly, the findings and recommendation from this book should be of great interest not only to future academic researchers in the field of macroeconomic stability and Islamic finance, but also to policy makers and regulators who are keen on drawing lessons from Islamic finance experiences to prevent similar crisis in the future.

Download or read book Variants of Participatory Financing for Risk Assessment and Mitigation in Islamic Banking written by Muhammad Nouman and published by . This book was released on 2020 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The participatory modes of Islamic financing including Musharakah and Mudarabah are widely accepted as the ideal modes of financing among the jurists of Islamic banking and finance. However, paradoxically, these are not the most popular modes of financing in practice. The practice of the participatory financing in Islamic banking is constrained by several factors. Therefore, Islamic banks are applying the adapted variants of Musharakah. The present study aims to explore the prevailing variants of participatory financing in the Islamic banking industry of Pakistan using multiple case studies strategy. Findings suggest that Islamic banks adapt the participatory financing to make these fit for SME financing, corporate financing, consumer financing, and commodity operations financing within the embedded contractual variants of Musharakah namely diminishing Musharakah and running Musharakah, while pure Musharakah and Mudarabah are not applied in practice. The study also provide insights into the design of participatory financing arrangements and the procedures adopted by Islamic banks for assessing and mitigating the underlying risks associated to the participatory financing , particularly the risk induced by asymmetric information including adverse selection, and moral hazards.

Download or read book Dilemmas and Challenges in Islamic Finance written by Yasushi Suzuki and published by Routledge. This book was released on 2018-03-09 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt: The phenomenal growth of Islamic finance in the last few decades has been accompanied by a host of interesting questions and challenges. One of the critical challenges is how Islamic financial institutions can be motivated to participate in the 'equity-like' profit-and-loss sharing (PLS) contracts. It is observed that Islamic banks are reluctant to participate in the pure PLS scheme which is manifested by the rising concentration of investment on murabaha or mark-up financing. This phenomenon has been the hotbed of academic criticism on the contemporary practice of Islamic banking. This book explains the 'murabaha syndrome' in light of the incentive provided by the current institutional framework and what are the changes required in the governance structure to mend this anomaly.

Download or read book FinTech in Islamic Financial Institutions written by M. Kabir Hassan and published by Springer Nature. This book was released on 2022-11-30 with total page 381 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores several challenges facing FinTech in Islamic financial institutions. Firstly, large banks and financial institutions in countries with updated and innovative technological channels will earn the technology arbitrage from FinTech. This ‘size’ puzzle may create a challenge for Islamic financial institutions that are of smaller size and from technologically less-developed countries. Secondly, while access to FinTech is getting broader day by day, usage of FinTech is still limited due to personal and governance-related limitations. Moreover, the level of awareness of the emerging FinTech services (i.e., bitcoin, blockchain, etc.) remains extremely poor even among the residents of technologically-advanced countries. Thirdly, use of FinTech by Islamic financial institutions is limited to Islamic banking, to users from developed countries, among young customers, and for a limited number of traditional banking services such as the deposits and payment services. Also, banks hope to use FinTech to increase the size of a new breed of technology-savvy depositors and loan customers to achieve economies of scale, which may help stabilize the banking sector. Automation in Islamic banks and the participation of Islamic financial institutions in blockchain and bitcoin domains require extensive research from Shariah-compliance as well as market and consumer-related grounds. With all the opportunities and challenges of FinTech—promoting inclusion, easier loan monitoring, and risk of Shariah non-compliance—this book explores the implications for Islamic financial institutions and will be of interest to scholars, researchers, and students of Islamic finance and financial technology.

Download or read book Islamic Financial Institutions and Participatory Finance Constraints written by Azam Ali and published by . This book was released on 2018 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic financial contracts are designed to facilitate financing according to Islamic norms. Islamic financing in its first stages used only the partnership modes of Musharakah and Mudarabah. Later it is realized that, to avoid moral hazards, yet compete successfully with conventional banks, it is necessary to use all permissible Islamic modes and consequently, trade and leasing techniques were developed. This paper aims to identify the constraints faced by Islamic financial institutions in the adoption of participatory finance i.e., Musharakah and Mudarabah financing. The two basic categories of financing are: 1) profit-and-loss-sharing (PLS), also called participatory finance, i.e. Musharakah and Mudarabah and 2) purchase and hire of goods or assets and services on a fixed-return basis, i.e., Murabahah, Istisna', Salam and Ijarah also called non-participatory finance. This paper suggests that innovation and creativity is necessitated more than ever to promote participatory modes of financing and to make it the preferred choice for meeting the increasingly sophisticated and diversified financial needs.

Download or read book Enhancing Financial Inclusion through Islamic Finance Volume II written by Abdelrahman Elzahi Saaid Ali and published by Springer Nature. This book was released on 2020-07-01 with total page 393 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is the second of two volumes which highlight the concept of financial inclusion from the Islamic perspective. An important element of the Sustainable Development Goals (SDGs), financial inclusion has been given significant prominence in reform and development agendas proposed by the United Nations and G-20. The significance of Islamic financial inclusion goes beyond improved access to finance to encompass enhanced access to savings and risk mitigation products, as well as social inclusion that allows individuals and companies to engage more actively in the real economy. It represents one of the important drivers of economic growth. This volume explores the financial risks associated with lending to low-income groups due to high poverty levels and the lack of collateralization mechanisms. The first book on the market to provide empirical evidence of Islamic microfinance, deposit insurance and micro-entrepreneurship through the analysis of models and country case studies, this edited collection will be of value to those researching development finance, financial inclusion and Islamic finance.

Download or read book Social Capital and Risk Sharing written by Abbas Mirakhor and published by Springer. This book was released on 2015-12-30 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: This exciting new addition to Palgrave Studies in Islamic Banking, Finance, and Economics argues that social capital can facilitate rule-compliance and co-operation in the sharing of risk in financial and economic activities.

Download or read book Islamic Finance for Green and Sustainable Projects and Ventures written by Mohamed Ebrahim and published by . This book was released on 2019-11-05 with total page 105 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, the United Nations - Sustainable Development Goals (SDG's) have risen to the top of the development agenda, with an emphasis on a partnership approach between the financed and financier. Given the scale of the financial resources required to support the SDG's, coupled with the strain on government budgets, the mobilization of financing through innovative instruments becomes imperative. Islamic finance, through the Maqasid al Sharia - Islamic moral economy values being the foundation for Islamic finance, where participatory modes of finance take centre stage. Hence, the potential of the use of Islamic finance to support "Green" investments to finance the SDG's this has been receiving increased attention. With recent issues of "Green" Sukuk to finance climate friendly projects, water and sanitation projects, clean energy projects. This is enhanced by the rise of the class of Ethical Social Governance (ESG) friendly investor and investment manager, who will mobilise the funds for investing in green sustainable projects. This is enhanced by the rise of the class of Ethical Social Governance (ESG) friendly investor and investment manager, who will mobilize the funds for investing in green sustainable projects. It is in this melting pot of ESG, Islamic moral value-based financial products, and impact investing, where innovative participatory finance will fusion to enable funding for green sustainable projects to actualize the SDG's, that this book is about.

Download or read book Islamic Finance written by David Eisenberg and published by OUP Oxford. This book was released on 2012-03-22 with total page 470 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work is a practical and commercial guide to the fundamental principles of Islamic finance and their application to Islamic finance transactions. Islamic finance is a rapidly expanding, global industry and this book is designed to provide a practical treatment of the subject. It includes discussion and analysis of the negotiation and structure involved in Islamic finance transactions, with relevant case studies, structure diagrams and precedent material supporting the commentary throughout. An introductory section describes the theoretical background and explains the principles (and their sources) of Islamic law which underpin Islamic finance practices, providing an important backdrop to the work as a whole. The work also considers the role of Shariah supervisory boards, Islamic financial institutions and the relevance of accounting approaches. The work adopts an international perspective to reflect the pan-global nature of the industry and accepted practices, with the aim to bring together different schools of thought applied in international Islamic finance transactions. It also highlights any regional differences in accepted practice by reviewing the position in the Gulf states, Asia, the UK and Europe and the USA. The second part of the book concentrates on Islamic financial law in practice and begins with a section on financial techniques. This section explains the basic requirements for Islamic finance contracts both in terms of the underlying asset types and also both the applicability and acceptability of the underlying asset. There is a full discussion of the various types of contractual models such as Mudaraba (trustee finance), Musharaka (partnership or joint venture), Murabaha (sale of goods), and Sukuk (participation securities: coupons etc). The nascent area of Takaful (insurance) is also covered as are matters specific to the important field of project and asset finance.

Download or read book Economic Development and Islamic Finance written by Zamir Iqbal and published by World Bank Publications. This book was released on 2013-08-05 with total page 376 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although Islamic finance is one of the fastest growing segments of emerging global financial markets, its concepts are not fully exploited especially in the areas of economic development, inclusion, access to finance, and public policy. This volume is to improve understanding of the perspective of Islamic finance on economic development, social and economic justice, human welfare, and economic growth.

Download or read book Islamic Banking in Pakistan written by Feisal Khan and published by Routledge. This book was released on 2015-12-22 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic Banking and Finance (IBF) has become a growing force over the past three decades, with Pakistan being one of the IBF pioneers by converting to an ‘interest-free’ banking system in 1985. However, since independence in 1947, there has been continual tension over Pakistan’s essential character, between Islamic Minimalists, who favour a Modernist interpretation of Islam, and those who favour an Islamic Maximalist interpretation that sees Pakistan as a model Islamic state. This book analyses the push to Islamize Pakistan and its financial system by Islamic revivalists, following the early 1947 debates in the original Constituent Assembly to the final 2002 ruling on IBF of the Shariat Appellate Bench of the Pakistan Supreme Court. It examines the practice and theory behind contemporary Islamic, "Shariah-compliant", banking. It offers extensive interviews with Pakistani Islamic bankers on the state of their industry and how they see it developing, and provides analysis on how the Islamic banks’ customers differ from those of conventional ones. Presenting a critical analysis of Pakistan’s IBF experience and offering a new insight into Pakistan’s banking industry that illustrates broader political and social trends in the country, this book will be of interest to specialists on Islam, South Asia and International Economics.

Download or read book Risk Management for Islamic Banks written by Imam Wahyudi and published by John Wiley & Sons. This book was released on 2015-11-16 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt: Gain insight into the unique risk management challenges within the Islamic banking system Risk Management for Islamic Banks: Recent Developments from Asia and the Middle East analyzes risk management strategies in Islamic banking, presented from the perspectives of different banking institutions. Using comprehensive global case studies, the book details the risks involving various banking institutions in Indonesia, Malaysia, UAE, Bahrain, Pakistan, and Saudi Arabia, pointing out the different management strategies that arise as a result of Islamic banking practices. Readers gain insight into risk management as a comprehensive system, and a process of interlinked continuous cycles that integrate into every business activity within Islamic banks. The unique processes inherent in Islamic banking bring about complex risks not experienced by traditional banks. From Shariah compliance, to equity participation contracts, to complicated sale contracts, Islamic banks face unique market risks. Risk Management for Islamic Banks covers the creation of an appropriate risk management environment, as well as a stage-based implementation strategy that includes risk identification, measurement, mitigation, monitoring, controlling, and reporting. The book begins with a discussion of the philosophy of risk management, then delves deeper into the issue with topics like: Risk management as an integrated system The history, framework, and process of risk management in Islamic banking Financing, operational, investment, and market risk Shariah compliance and associated risk The book also discusses the future potential and challenges of Islamic banking, and outlines the risk management pathway. As an examination of the wisdom, knowledge, and ideal practice of Islamic banking, Risk Management for Islamic Banks contains valuable insights for those active in the Islamic market.

Download or read book Islamic Monetary Economics and Institutions written by Muhamed Zulkhibri and published by Springer Nature. This book was released on 2019-10-01 with total page 201 pages. Available in PDF, EPUB and Kindle. Book excerpt: This edited volume explores theoretical and empirical issues related to monetary economics and policy in the Islamic financial system. Derived from the Conference on Islamic Monetary Economics and Institutions: Theory and Practice 2017 held in Malé, Maldives, the enclosed papers highlights several option for authorities and regulatory bodies regarding monetary policy and regulation, as well as discussing how Islamic monetary policy effects growth, financial stability and resilience to shocks in practice. The inter-linkage between Islamic monetary policy and other markets are also explored. The subject of Islamic economics has gained considerable attention in the last four decades with the emergence of Islamic financial institutions around the world. This phenomenon has motivated economists to develop a comprehensive theoretical framework of modern monetary economics for Islamic economic system. An important characteristic of the Islamic economic system is the abolition of interest from the financial system. Islamic monetary economics is distinguished from conventional monetary economics due to the absence of interest. Therefore, under the Islamic economic system, monetary policy has to depend on other tools. In the early theoretical literature on Islamic monetary economics, many have discussed the role of money in Islamic economics system, while the number of empirical studies on Islamic monetary economics is a relatively new phenomenon. According to Islamic scholars, there are three main goals of Islamic monetary policy: a) economic well-being with full employment and optimum rate of economic growth; b) socioeconomic justice and equitable distribution of income and wealth and c) stability in the value of money. Hence, the Islamic monetary policy has several socioeconomic and ethical implications. Featuring regional case studies, this book serves as a valuable resource for academics, scholars, practitioners and policy makers in the areas of Islamic economics and finance.