Download or read book Capital and Profit Sharing in Islamic Equity Financing written by Muhammad Abdurrahman Sadique and published by The Other Press. This book was released on 2012 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Profit and Loss Allocation Among Islamic Bank and Client Partner in Equity Financing written by Muhammad Abdurrahman Sadique and published by . This book was released on 2017 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: The profit sharing ratio in equity financed projects is decided by Islamic banks mainly through applying the relevant rate of return on capital. After first determining the return sought by the bank, the remainder of the expected profit is usually taken as the share of the joint partner, and the proportion adopted as the profit sharing ratio.Ideally, the profit sharing ratio should be decided through a mutual process considering the contributions of both partners, with due recognition of the level of liability each had borne. The period, as a factor common to the joint venture, could be redundant. Hence, the profit sharing ratio should be reflective of the capital and labour outlay of both the bank and the client, to the extent possible.In view of the socio-economic function expected of Islamic banks, the method for profit ratio calculation adopted should adequately consider the actual contributions of both partners. Two bases possible are giving capital and labour of both partners equal weightage, and giving capital a weightage different from labour.

Download or read book Shari ah Compliant Private Equity and Islamic Venture Capital written by Fara Madehah Ahmad Farid and published by Edinburgh University Press. This book was released on 2012-11-16 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the applicability of Shari'ah-based structures and Islamic venture capital to the private equity industry. It includes case studies and examples of business financial appraisals to give an in-depth view of the application and operatio

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 Munawar Iqbal and published by Edward Elgar Publishing. This book was released on 2002 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ten papers were selected for publication from the 23 presented at the international conference Islamic Finance: Challenges and Opportunities in the 21st Century, held in August 2000 at Loughborough, England. They highlight some of the key features of sharing-based contracts, as compared to the debt-based contracts used in western banking systems, and show they can help improve the efficiency and stability of a financial system. The contributors are mostly economics scholars in Islamic countries ranging from Morocco to Indonesia, but also some from and in western countries. A glossary of Arabic terms is included, though no guide to pronunciation is provided. Annotation copyrighted by Book News, Inc., Portland, OR

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 Islamic Capital Markets written by Kabir Hassan and published by John Wiley & Sons. This book was released on 2011-04-04 with total page 481 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic Finance has experienced rapid growth in recent years, showing significant innovation and sophistication, and producing a broad range of investment products which are not limited to the complete replication of conventional fixed-income instruments, derivatives and fund structures. Islamic Finance represents an elemental departure from traditional interest-based and speculative practices, relying instead on real economic transactions, such as trade, investment based on profit sharing, and other solidary ways of doing business, and aims to incorporate Islamic principles, such as social justice, ecology and kindness, to create investment products and financial markets which are both ethical and sustainable. Products created according to Islamic principles have shown a low correlation to other market segments and are relatively independent even from market turbulences like the subprime crisis. Therefore, they have become increasingly popular with secular Muslims and non-Muslim investors, as highly useful alternative investments for the diversification of portfolios. In Islamic Capital Markets: Products and Strategies, international experts on Islamic Finance and Sharia'a Law focus on the most imminent issues surrounding the evolution of Islamic capital markets and the development of Sharia'a-compliant products. The book is separated into four parts, covering: General concepts and legal issues, including Rahn concepts in Saudi Arabia, the Sharia'a process in product development and the integration of social responsibility in financial communities; Global Islamic capital market trends, such as the evolution of Takaful products and the past, present and future of Islamic derivatives; National and regional experiences, from the world's largest Islamic financial market, Malaysia, to Islamic finance in other countries, including Germany, France and the US; Learning from Islamic finance after the global financial crisis; analysis of the risks and strengths of Islamic capital markets compared to the conventional system, financial engineering from an Islamic perspective, Sharia'a-compliant equity investments and Islamic microfinance. Islamic Capital Markets: Products and Strategies is the complete investors' guide to Islamic finance.

Download or read book Public Finance and Islamic Capital Markets written by Syed Aun R. Rizvi and published by Springer. This book was released on 2016-11-01 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book addresses the financing of government budgets with non-debt-creating flows through risk-sharing capital market instruments. It offers a comparative analysis with conventional finance to demonstrate the ability of Islamic capital market instruments to create an impetus for economic stability and growth. Rizvi, Bacha, and Mirakhor guide readers chronologically through the unfolding effects of macroeconomic policy implemented to reduce crippling sovereign debt, increase government financing, and guide governments to the path of economic progress.

Download or read book Economic Capital and Risk Management in Islamic Finance written by Abdul Ghafar Ismail and published by Taylor & Francis. This book was released on 2024-03-06 with total page 278 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic capital is the subject of great debate among academics and professionals in the field of risk management. Conceptually, Islamic finance's encouragement of risk-sharing eliminates the debt burden encountered by the conventional banking sector. The majority of the Islamic banking system is based on equity-based financing. To be effective in practice, a variety of well-functioning institutions are required to translate Islamic banking concepts into a 'real-world' financial system. In spite of this, the regulatory, legal, product and operational requirements specific to Islamic banks may necessitate a distinct strategy for managing capital-related risks. This book provides a comprehensive review of the theoretical and practical aspects of Islamic economic capital in relation to contemporary Islamic finance. Drawing on the risk-sharing concept, this book delves into the core concept of economic capital from an Islamic perspective, including comparisons to conventional finance theory. Furthermore, it introduces alternative models and offers practical examples to strengthen the regulation and supervision of the Islamic banking system. It also addresses critical policy challenges concerning economic capital in Islamic finance, especially in dual banking countries. This book seamlessly integrates new theory with empirical insights and discusses emerging themes, including stress testing and Shari'ah compliance issues. Most of the chapters are illustrated with real-world cases and practical examples. This book is intended for advanced degree students in finance, and investment professionals, as well as financial practitioners and advisors, particularly those who are pursuing Islamic economics and finance courses.

Download or read book The Basics of Islamic Finance With Applications in Malaysia UUM Press written by Sabariah Nordin and published by UUM Press. This book was released on 2016-01-04 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Islamic way of dealing with business transactions is unique. With the guidance from Syariah principles, Muslims are prohibited to engage in any activity which can cause harm to other traders or consumers. Nowadays, Islamic Finance is accepted and is gaining popularity in the financial market environment due to its success in attracting people, especially investors from the Gulf Countries. It is also due to the rising demand from Non-Muslim investors for ethical financing and investment. This change in the financial landscape led to the idea to write this book, which gives an in-depth insight into the basic idea or concepts used in Islamic finance. Although this book emphasizes on the application of Islamic finance in Malaysia, the underlying application is more or less the same for other countries adopting Islamic finance tools. This book is divided into five chapters. Chapter 1 looks at the overview of Islamic finance and banking. A thorough understanding of the function of money, capitalist economy and commonly used modes in Islamic finance and banking, such as Musyarakah, Mudharabah, Murabahah and Ijarah, are essential for understanding the other topics covered in this book. Chapter 2 provides an understanding on interest rates in the context of time value of money, price expectation and business cycles. Chapter 3 is on riba from an Islamic perspective; it looks at the definition of riba, the prohibition of riba, types and classification of riba and the difference between riba and profit. Chapter 4 focusses on the Islamic Capital Market, which includes Islamic Money Market, Islamic Banking and Islamic Insurance. The chapter shows the commonly used Islamic capital market instruments, such as Sukuk, Islamic Syariah Equity and Islamic Real Estate Investment Trust (REITs). Finally, Chapter 5 deals with Islamic Financial Institutions and Market Regulators which lay the foundation for and development of Islamic finance. These international bodies and regulators are the Islamic Financial Services Board (IFSB), International Islamic Financial Market (IIFM) and Accounting and Auditing Organization for Islamic Financial Institutions (AAOFI). The chapter also discusses regulators in Malaysia, such as Bank Negara Malaysia (BNM), Securities Commission (SC) and Labuan Financial Services Authority (FSA). In addition, this final chapter explains some laws in Malaysia which relate to Islamic Finance and Banking.

Download or read book Risk Management for Islamic Banks written by Imam Wahyudi and published by John Wiley & Sons. This book was released on 2015-09-01 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 Implications of Profit Sharing Investment Accounts on the Capital Structure of Islamic Bank written by Johaina Khalid and published by . This book was released on 2017 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic banks are different from conventional banks both in terms of their assets and liabilities. One of the major difference in conventional and Islamic banks is the presence of profit sharing investment (PSI) accounts, a quasi-equity, and a buff to bear the financial risk of Islamic banks before it hits the depositors. This paper compares the impact of deposits on the market value, earnings per share (EPS) and financial risk of shareholders of Islamic and conventional banks in Pakistan. The empirical evidence suggests that deposits have a negative impact on market value and EPS of conventional banks. While in the case of Islamic banks, we do not find any significant impact of PSI accounts on market value of Islamic banks; however, we do find the evidence of the significant positive relationship of PSI accounts with EPS. Contrary to the general belief, we find evidence that higher growth in PSI accounts leads to elevated financial risk. The higher financial risk can be attributed to the income smoothing practices of Islamic banks where Islamic banks announce the profit rates of PSI accounts similar to deposit rates offered by their conventional counterparts.

Download or read book Islamic Capital Market written by Muhammad Hanif and published by CreateSpace. This book was released on 2014-05-01 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic banking and finance industry is expanding world over with an unprecedented growth. The global volume of Shari'a compliant assets has reached to US $ 1,700 Billion by the end of 2013, displaying a growth of 21% from 2007-13 (GIBCR-2014) Middle East and North Africa (MENA) region is the centre of Islamic finance market and contributes 74% share in global assets under Islamic finance, followed by East Asian region with a share of 17% while 9% from rest of the world. (IFSL, 2013). Share of Bank assets is 90% followed by equity funds 5% and rests are others in the global volume of assets under Islamic finance. For Islamic financial industry, deposit collection is not as much difficult as is financing and investments in business and industry. The investment avenues are limited due to Shari'a compliance restrictions as compared to conventional banks. For IFIs, Shari'a compliant modes of investments are a must. Conventional interest based bonds, leasing and insurance companies' certificates and government securities are not in line with Islamic financial system. However investment in equities, which are primarily profit and loss sharing based, fall within Shari'a compliant investment universe. Capital market is one of the major sources of diverting funds from savers to investors. Islamic finance is expanding in capital market in the form of Islamic indexes, Sukuk, money market funds and equity market funds. To address the issue of investment in marketable equities (which are primarily based on profit and loss sharing principle), Shari'a screening filters have been developed and we have above ten Islamic Indexes operating worldwide including DJIM, FTSE, S&P, MSCI, HSBC, Ameri, BID, Azzad and KMI. There exist differences in filtering criteria of these indexes and it is quite possible that a company is Shari'a compliant under one index and not under other(s) [see Derigs & Marzban, 2008]. This difference exists among all followers of revealed books (Jews, Christians and Muslims), in explanation and detailed rules development based on revelations. There are at least five schools of thoughts based on solid reasons and logic among Muslims including Hanfi, Shafai, Malki, Hanbali and Jaafari. In Pakistan Al-Meezan Investment Management Ltd (AIML), subsidiary of a leading IFI (Meezan Bank) took the initiative and started screening of KSE listed securities through Shari'a compliance filters and developed KSE-Meezan Index (KMI-30). Test of Shari'a compliance of stocks is done under the guidance of qualified and reputed Shari'a experts. For a security, to be “Shari'a compliant” based on KMI Criteria, it must meet ALL the six key tests given below (KMI-2008).This book is written with a clear focus on learning of Islamic capital market by accounting, banking, business and finance students/professionals. Under Islamic capital market two dedicated chapters have been included; each for equities and Sukuk. Shari'a compliance of equity securities, trading rules and valuation mechanism discussed under equity chapter. Chapter-2 on Sukuk includes origin, development, types and Sukuk process along with Shari'a rulings. In this edition due attention has been given to present material in reader friendly mode in addition to thorough review of content, exercises and figures. Updated figures on equity funds and Sukuk are also part of this edition. This book is useful for MBA/BBA students as well as for banking/finance students and practitioners of Islamic banking & finance. It is also useful for accounting & finance professionals, trainers in Islamic banking, regulators, investors, corporate managers and general public, interested in understanding Islamic finance.

Download or read book Islamic Finance written by Muhammad Hanif and published by CreateSpace. This book was released on 2014-06-29 with total page 414 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is result of five years teaching of Islamic finance course to MBA Finance students. This book is written with a clear focus on learning of Islamic banking & finance by accounting, banking, business and finance students/professionals. Resources available, so for, on the subject have focused on legal side and very negligible work is available on financial front for a common user. This book is written in financial perspective and author has focused upon financial impacts, generated by application of Islamic financial laws. However a summary of Islamic commercial laws of each chapter has been provided. Author has adopted balance sheet method to inculcate the knowledge; hence, understanding of elementary balance sheet is recommended to get maximum out of this book. This book is divided into five parts. Part-1 presents an update on Islamic finance. Part two is about asset backed financing provided by IFIs. It includes trading (selling) modes of financing including Murabaha, Salam and Istisna'a; it also includes Ijarah financing. At the start of part two, summary of Shari'a rulings about sales is reported. Part three of the book deals with profit and loss sharing modes of financing including Musharaka, diminishing Musharaka and Mudaraba. A special section is devoted to discuss the causes of lesser application of Musharaka in operations of IFIs, in addition to Shari'a rulings and financial impact. Chapter seven is about Diminishing Musharaka; a form of gradually declining partnership between an IFI and clients; generally used to finance real estates. Under diminishing Musharaka, I have discussed the basic Shari'a rulings, Islamic house financing, comparative study of conventional and Islamic mortgages and installment calculation under different assumptions for house financing. Chapter eight is about Mudaraba. Under this scheme of financing IFIs provide capital to financially weak but skilful people to do the business and share outcome with IFIs. Part four is about deposits management. Part five of the book presents special topics in Islamic Finance. In this part areas of liquidity management and Islamic insurance are discussed. Under Islamic capital market two dedicated chapters have been included; each for equities and Sukuk. Chapter 12 is dedicated for Islamic insurance. Last chapter has focused on challenges to Islamic finance industry. Third edition is definitely outcome of very encouraging response by academic community to earlier editions. In this edition due attention has been given to present material in reader friendly mode in addition to thorough review of content, exercises and figures. In this edition Islamic capital market is re-written by including separate chapters on equities and Sukuk. Also a special chapter is devoted to Islamic insurance. Updated figures on global volume of assets, regional shares, equity funds and Sukuk are also part of this edition. Also more examples included in the text to make the concept clear. In appendix guidance for establishment of Islamic bank and appointment of Shari'a advisor as provided by local central bank is included. Increased number of true/false, multiple choice questions and mini cases are also forming part of updated edition. This book is useful for MBA/BBA students as a three credit hour course as well as for banking/finance students and practitioners of Islamic banking & finance. It is also useful for accounting & finance professionals, trainers in Islamic banking, regulators, investors, corporate managers and general public, interested in understanding Islamic finance. I hope this book will serve its purpose through imparting knowledge of Islamic banking & finance among accounting, business and finance graduates as well as practitioners of Islamic financial system, investors and general public.

Download or read book Islamic Corporate Finance written by M. Kabir Hassan and published by Routledge. This book was released on 2019-06-04 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most existing texts covering topics in Islamic finance discuss the potential of Islamic banking; very few talk about other forms of financing and the investment activities of Islamic firms from the standpoint of owners and managers. This book fills this gap by looking at the traditional as well as non-traditional financing and investment activities of shariah-compliant companies. The chapters in this edited text offer a full range of topics on corporate finance for Islamic firms, including global comparisons of shariah screening, dividend policy and capital structure of Islamic firms, details of global Islamic equity markets, trends and performance of sukuk markets, and a brief account of derivative securities that can be used in Islamic finance. This is a useful reference for anyone who wishes to learn more about the performance of shariah-compliant companies vis-à-vis conventional firms. The book includes both technical and non-technical information that would be suitable for classroom teaching as well as a reference for postgraduate research students.

Download or read book Partnership Equity Financing and Islamic Finance written by Mohammad Omar Farooq and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Proponents of Islamic financial institutions (IFIs) regard their conventional counterparts as Islamically unacceptable, because the latter are interest-based, not based on fair profit-loss sharing (PLS) and risk sharing. Idealization of the PLS mode is questionable as it is not explicitly mandated in Islam's primary texts. The preference for PLS is based on juristic interpretation that evolved in response to the prohibition of riba, commonly equated with interest. Contrary to theory, IFIs in practice have marginalized PLS modes and instead adopted mark-up type, interest-substituting, risk-avoiding modes of finance. In this paper it is argued that despite the theoretical idealization, IFIs as businesses are rational in avoiding PLS modes. Partnership is the least common form of business organization for practical reasons. In this context these reasons also cover equity-financing. IFIs are organized as banks, but rather than being financial intermediaries, they are primarily merchant banks. Accordingly, this paper contends that legally restricting or religiously idealizing PLS modes is untenable. The conclusion is that, while paying lip service to PLS modes to define themselves as interest-free aka Islamic entities, IFIs continue to marginalize PLS, packaging conventional banking products under Islamic labels.

Download or read book Fundamentals of Islamic Finance written by Muhammad Hanif and published by Independently Published. This book was released on 2020-08-20 with total page 440 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is the result of a decade teaching of Islamic finance course to business graduates (Bachelor and Master classes). This book is written with a clear focus on learning of Islamic banking & finance by accounting, banking, business and finance students/professionals. This book is divided into five parts. Part-1 presents an update on Islamic finance, why and how Islamic banking started; What is current status; Meaning and prohibition of Riba (Interest & Usury) as reported in revealed books (Bible and Qur'an); business models under Islamic financial services industry; principles of Islamic financial system, similarities and differences with conventional finance industry, and challenges being faced by the nascent industry.Part two is about asset-backed financing provided by IFIs. It includes trading (selling) modes of financing including Murabaha (ch.2), Salam, and Istisna'a; it also includes rental-based financing product-Ijarah financing. Chapter 2,3,4,5 include sales and rental-based financing. Part three of the book deals with profit and loss sharing modes of financing including Musharakah, diminishing Musharakah and Mudarabah. A special section is devoted to discussing the causes of lesser application of Musharakah in operations of IFIs, in addition to Shari'ah rulings and financial impact. Chapter seven is about Diminishing Musharakah; a form of gradually declining partnership between an IFI and clients; generally used to finance real estates. Under diminishing Musharakah, the basic Shari'ah rulings, Islamic house financing, comparative study of conventional and Islamic mortgages and installment calculation under different assumptions for house financing are presented. Chapter eight is about Mudarabah. Chapter nine presents various types of deposits collected by IFIs and profit-sharing mechanism. Concepts of daily product and weight-age based profit systems are elaborated.Part four of the book presents special topics in Islamic Finance. In this part areas of liquidity management, Islamic insurance, currency system, substance & form, and challenges to Islamic finance industry are elaborated. Under Islamic capital market (liquidity management) two dedicated chapters have been included; each for equities and sukuk. Chapter 12 elaborates briefly the concept of Islamic insurance covering multiple areas including Shari'ah guidelines, takaful (insurance) models, and role of insurance company, in addition to illustrative financial calculations. Chapter-13 addresses the issue of preference for 'legal form over economic substance' by critically evaluating the selected Islamic finance contracts Last chapter identifies the challenges [potentially hurdles in sustainability, growth and expansion of the industry]. The fifth edition is the outcome of encouraging response by the academic community to earlier editions. In this edition, due attention has been given to present material in a reader-friendly mode in addition to a thorough review of content, exercises and figures. Title of the book changed by adding prefix of 'fundamentals' to reflect the nature of work (as text book). In this edition, the chapter on Islamic finance: an update is revised thoroughly; and by insertion of specific contents including principles and business models of Islamic financial system, in addition to brief presentation of challenges. Besides, Islamic capital market is re-written by including an evaluation of methodologies used in creation of Shari'ah universes of stocks. Also, a new chapter included to present the application of 'form over substance' principle to industry practices. Updated figures on the global volume of assets, application of financial products; regional shares, etc. are also part of this edition. Also, more examples included in the text to make the concept clear. An increased number of multiple-choice questions and mini cases are also forming part ofthe updated edition. I welcome readers' Feedback.