scholarly journals Islamic Finance: A Review Of The Literature

2015 ◽  
Vol 14 (5) ◽  
pp. 745 ◽  
Author(s):  
Jean-Yves Moisseron ◽  
Bruno-Laurent Moschetto ◽  
Frederic Teulon
Keyword(s):  
Islamic Law ◽  
Banking System ◽  
World Order ◽  
Islamic Finance ◽  
Islamic Banks ◽  
New World Order ◽  
Review Of The Literature ◽  
Islamic Ethics ◽  
Global Banking ◽  
East And Southeast Asia

In recent years, a number of Islamic banks have been created to cater to the growing demand, driven by globalization and the vast wealth of some Muslim states in the Middle East and Southeast Asia, and Islamic finance has moved from a niche position to become a mainstream component of the global banking system. Islamic banking refers to a financial system which is consistent with principles of Islamic law (or sharia) and guided by Islamic ethics. A large amount of research has been undertaken into this subject. This paper presents islamic finances role in the new world order.

scholarly journals The Analysis of the Turkish Islamic Banking System Between 2005 and 2014

2016 ◽  
Author(s):  
Lívia Tálos ◽  
Gyöngyi Bánkuti ◽  
Jozsef Varga
Keyword(s):  
High Risk ◽  
Economic Crisis ◽  
Islamic Law ◽  
Banking System ◽  
Rating System ◽  
Annual Reports ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Conventional Banks

Islamic banking is a banking system that is based on the principles of sharia or Islamic law. The principles of Islamic finance forbid interest - this is commonly known as riba - charity (zakat), forbid high risk (gharar), forbid some transactions like gambling, and are based on PLS (Profit-Loss Share). The most important concept is that both charging and receiving interest are strictly forbidden; money may not generate profits. Islamic banks have largely survived the global economic crisis intact and they offer a safer operation than conventional banks. CAMEL analysis is a supervisory rating system to classify a bank's overall condition according to Capital (C), Assets (A), Management (M), Earnings (E) and Liquidity (L). In the analysis a variety of indicators were calculated based on data from the annual reports. The results of the four banks were averaged separately, then classified (1 = good, 2 = adequate, 3 = satisfactory, 4 = acceptable, 5 = unacceptable) according to the desired criteria, the changes over the years and the relative values of the four banks.

The Moral Possibility of Islamic Banking System as Institution

2013 ◽  
pp. 143-172
Keyword(s):  
Phenomenological Model ◽  
Islamic Law ◽  
Banking System ◽  
Critical Examination ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Extensive Review ◽  
Review Of The Literature ◽  
Critical Understanding ◽  
Unity Of Knowledge

This is an applied chapter on the application of the phenomenological model of unity of knowledge to a critical understanding of the Islamic law, economics, finance, and banking philosophy of the Islamic banks in Indonesia. The chapter explains how the Indonesian Islamic banks are trying to introduce the moral and ethical factors in the mundane business of finance and banking as a sign of integrating God (i.e. the monotheistic law) with this world-system. The chapter goes on with its critical examination of the Indonesian case in the light of its theorem of universality and uniqueness of the monotheistic law as functional ontology. An extensive review of the literature is undertaken to establish its critical worldview of the predicament prevailing in the moral premise with Islamic economics, finance, and banking. The alternative prescription is provided in light of the phenomenological model of epistemic unity.

scholarly journals نظرية المضاربة في الشريعة الاسلامية وتطبيقها في البنوك الاسلامية وتنمية الاقتصاد الإسلامي في إندونيسيا

2018 ◽  
Vol 6 (2) ◽  
pp. 124
Author(s):  
Abdurrohman Kasdi
Keyword(s):  
Islamic Law ◽  
Stock Exchange ◽  
Field Research ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Economic Literature ◽  
Economic Concept ◽  
Price Differentials

<p><em>This article aims at explaining the theory of mudharabah in Islamic Sharia and its application in Islamic banking and the development of the Islamic economy in Indonesia. This study is based on field research. The method of analysis of the data used is the analysis of the content on the messages received from mudharabah in Islamic law and its application in Islamic banks and the development of the Islamic economy. The result of this research is that mudharabah is one of the most important and oldest forms of investment of funds in the Islamic Sharia. The fuqaha have agreed on the legality of mudharabah, and the evidence of legality, from the al-Qur’an, Sunnah, Ijma’, and Qiyas. The mudharabah formula in Islamic banks came as a legitimate alternative to traditional financing operations. It is one of the most important forms of Islamic finance and is thought to have been the cause of Islamic banks, which are said to be the Islamic financing formula. In Islamic banks, mudharabah is divided into absolute mudharabah and restricted mudharabah. The economic concept of mudharabah in the economic literature goes to the stock exchange and its predictions of market fluctuations. The investor may have to pay the price differentials in the case of lower prices. </em></p>

Part II Islamic Law and Contracts in Practice, 12 Shari’a-Compliant Funds: Principles and Practical Considerations

2020 ◽  
Author(s):  
Ahmedani Zeeshan ◽  
Alam Safdar
Keyword(s):  
Middle East ◽  
Southeast Asia ◽  
Broad Spectrum ◽  
Islamic Law ◽  
Islamic Finance ◽  
Investment Management ◽  
Islamic World ◽  
East And Southeast Asia ◽  
Asset Classes

This concluding chapter explores Shari’a-compliant funds. The Shari’a-compliant funds sector is concentrated in three distinct ways, each of which exemplifies constraints on its ability to grow. First, the sector is still largely concentrated in two regions of the Islamic world: the Middle East and Southeast Asia. Second, the sector is also concentrated in a small number of asset classes. Thus, it does not as yet provide its investor base with the broad spectrum of exposure to geographies, asset classes, strategies, and return profiles that are the hallmark of a mature investment management industry. Third, the Shari’a-compliant funds sector lacks significant diversification across managers, with a handful of large managers still dominating the market. The chapter then looks at the basic tenets of Islamic finance and their application to Shari’a-compliant funds. It also considers the various types of Shari’a-compliant funds, as well as the process of establishing and operating a Shari’a-compliant fund.

Legal Aspect of Islamic Finance

2015 ◽  
Vol 29 (3) ◽  
pp. 285-295
Author(s):  
Reyadh Mohamed Seyadi
Keyword(s):  
Financial Institutions ◽  
Islamic Law ◽  
Legal Aspect ◽  
Islamic Finance ◽  
Islamic Banks ◽  
Islamic Institutions

Nowadays, a number of Islamic banks look forward to compete with contemporary conventional financial institutions. However, conventional transactions, which are not recognized by the Sharīʿah (Islamic law), are totally rejected when relying on ribā (usury). Therefore, although in principle it would not necessarily be inappropriate to compete with conventional institutions, Islamic institutions should carefully uphold the spirit and purposes of the Sharīʿah. Transactions should not simply be designed to meet all Islamic requirements while at the same time deviate from the substance and spirit of the Sharīʿah.

scholarly journals Islamic finance and the global financial crisis: an empirical study

2021 ◽  
Vol 3 (3) ◽  
pp. 62-69
Author(s):  
Fadwa Errami ◽  
Jamal Abnaha
Keyword(s):  
Financial Institutions ◽  
Global Economy ◽  
Islamic Law ◽  
Global Financial Crisis ◽  
The United States ◽  
Muslim World ◽  
Islamic Finance ◽  
Islamic Banks ◽  
Islamic Financial Institutions ◽  
The Global Financial Crisis

Islamic finance can no longer be dismissed as a passing fad or as an epiphenomenon of Islamic revivalism. Islamic financial institutions now operate in over 70 countries. Their assets have increased more than fortyfold since 1982 to exceed $200 billion. In 1996 and 1997, they have grown at respective annual rates of 24 and 26 per cent.1 By certain (probably overly optimistic) estimates, up to half of the savings of the Islamic world may in the near future end up being managed by Islamic financial institutions. The first Islamic banks were created in the 1970s, at the time when the aggiornamento of Islamic doctrine on banking matters was taking shape. At the time, Islamic banks were typically commercial banks operating on an interest-free basis. Today, as a consequence of broad changes in the political–economic environment, a new generation of Islamic financial institutions, more diverse and innovative, is emerging as the doctrine is undergoing a new aggiornamento. Perhaps the most important development has been the growing integration of Islamic finance into the global economy. There is now a Dow Jones Islamic Market Index, which tracks 600 companies (from inside and outside the Muslim world) whose products and services do not violate Islamic law. Foreign institutions such as Citibank have established Islamic banking subsidiaries, and many conventional banks – in the Muslim world but also in the United States and Europe – are now offering ‘Islamic products’ that are sometimes aimed at non-Muslims.

Bai ‘Al-Tawarruq: Concept Of Islamic Financing?

2016 ◽  
Vol 4 (3) ◽  
pp. 49
Author(s):  
Luqman Nurhisam
Keyword(s):  
Islamic Law ◽  
Legal Framework ◽  
Islamic Finance ◽  
Basic Rule ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Research Subjects ◽  
Financial Products ◽  
Commodity Trading ◽  
Private Financing

Shariah Committee in Malaysia in his fatwa has legitimized the execution of the contract al-Tawarruq and al-'nah in Islamic banking practices, while the contract is not ratified by the National Sharia Council in Indonesia. This study will discuss the reasons and background differences fatwa, and an aspect ratio of banking products and the legal framework used to legitimize Islamic financial products in Indonesia and Malaysia. Therefore, further research is needed to analyze how the views of the scholars against al-Tawarruq along with proof of his, and the extent to which the contract tawarruq has been applied in Islamic finance, especially in Indonesia and Malaysia. As a result of a comparison of Islamic financial products in general, and the legal framework used by the Sharia Board between Indonesia and Malaysia. The method used is descriptive qualitative analysis. In this study, the research subjects are the scholars of Sharia Council. While the object of research is the view of the scholars of fiqh against al-Tawarruq, aspects of financial products, and the framework of Islamic law. From this study, it was found that the mechanism of al-Tawarruq, can not be regarded as an Islamic financial products, because a lot of flaws in it. Hilah known that there are not good that lead to usury, so this is the reason of the majority of scholars do not technically separated in Indonesia. However, as far as the development of the contract used that alTawarruq al-fiqhi been applied in syariah commodity trading in the Jakarta Futures Exchange. While Malaysia believes that the buying and selling of al-Tawarruq is halal as the basic rule for the legitimacy of the agreement, which has been applied in private financing in Islamic banks, as well as a commodity murabaha on Bursa Malaysia namely Bursa Suq Al-Sila.  

scholarly journals Factors Influencing Customers Loyalty Towards Islamic Banking: A Case Study in Gombak, Selangor

2020 ◽  
Vol 15 (1) ◽  
pp. 11-20
Author(s):  
Farhan Lukman Rahman ◽  
Wan Mohd Farid Wan Zakaria ◽  
Wan Muhd Faez Wan Ibrahim ◽  
Syed Khusairi Tuan Azam ◽  
Mohd Hafizan Musa
Keyword(s):  
Islamic Law ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Basic Principles ◽  
Independent Variables ◽  
Customer's Loyalty ◽  
Industry Needs ◽  
Structured Questionnaire

The Islamic banking system governs two (2) basic principles which are mutual sharing of profit or loss and the prohibition of the collection and payment of interest. These basic principles are important to the establishment of an Islamic bank. Islamic law prohibits any activities that involve interest, gambling and speculative. Having great competition with foreign and conventional bank, Islamic banking industry needs variety of services and products to be offered to attract customers which is in compliance with shariah law. Thus, the main objective of this study is to examine the factors that influence customer’s loyalty towards Islamic banking. The independent variables include shariah compliant, product quality, service quality, and convenience. This study is conducted using structured questionnaire and were personally administrated across 303 respondents in Gombak, Selangor. This study is significantly important for the industry to find out the explanations and motive of customer’s loyalty in Islamic banks. Eventually, it will help the industry to establish a better services and products for the customers.

scholarly journals Islamsko bankarstvo i modeli financiranja u poslovanju islamske banke

2017 ◽  
Vol 6 (2) ◽  
pp. 65
Author(s):  
Nemanja Budimir
Keyword(s):  
United Arab Emirates ◽  
Islamic Law ◽  
Banking System ◽  
The Philippines ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking And Finance ◽  
Minority Religion ◽  
Conference Organization ◽  
The Uk

Islamic banking is now a widespread notion in both Islamic countries and the West. It denotes a bank form and finances that seek to provide services to clients without interest. Proponents of Islamic banking say that the main objective is the "fish", which is prohibited by Islamic law. This attitude toward interest contributed to the unification of several Islamic schools, with the aim of finding ways for the development of an alternative banking system that would be compatible with the rules of Islamic Laws, and in particular to the rules relating to the prohibition of interest. Since the mid-1970s, the number of Islamic banks is on the rise. Islamic banks are not only based in countries where Islam is the prevalent religion, such as Egypt, Jordan, Sudan, Bahrain, Kuwait, United Arab Emirates, Tunisia, Mauritania and Malaysia, but also in countries such as the UK, Germany and the Philippines where Islam is a minority religion. The International Islamic Bank, the Islamic Development Bank, whose shareholders are members of the Islamic Conference Organization are acting as sponsors for Islamic banking and finance throughout the Islamic world.

Sign in / Sign up

Export Citation Format

Share Document