scholarly journals ARBITRATION AND MEDIATION METHOD APPLIED TO ISLAMIC FINANCE CONFLICTS IN MALAYSIA

2015 ◽  
Vol 6 (3) ◽  
pp. 1151-1158
Author(s):  
Nur Khalidah Dahlan ◽  
Mohd Rizal Palil ◽  
Noor Inayah Yaa‟kub ◽  
Mohamad Abdul Hamid
Keyword(s):  
Economic System ◽  
Banking System ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Pertinent Literature ◽  
Islamic Country

Malaysia has already known as an Islamic country. In a country of multi-ethnicity, multi-religion and multi-cultural societies, demands a concept of justice and equality that is different from other countries, particularly the ones with homogenous societies. The highest law of the land places Islam, the religion associated with one of the main ethnicity, as the official religion of the nation and allowed the duality of economic system, in particular banking system, whereby conventional banking system exists side-by-side with the Sharia-compliant, Islamic banking. By reviewing the pertinent literature on the development of Islamic banking, the reviewed cases on Islamic banking and its contributions to Malaysian society regardless of ethnicity and religion. The discussion in this paper therefore will be directed towards highlighting the laws and mechanisms of solution on Islamic banking and its implication to enhance the application of Islamic banking laws to consumers regardless of ethnicity and religion, in order to maintaining fairness and justice in a multi-ethnic society

scholarly journals On The Road To Fairness For All

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Nur Khalidah Dahlan ◽  
Rozlinda Mohd Fadzil
Keyword(s):  
Economic Development ◽  
Economic System ◽  
Banking System ◽  
Essential Element ◽  
Islamic Banking ◽  
Pertinent Literature ◽  
The Road ◽  
On The Road

Equitable economic development is an essential element in order to achieve justice and equality in a multi-ethnic society. The reality of Malaysia, which is a country of multi-ethnicity, multi-religion and multi-cultural societies, demands a concept of justice and equality that is different from other countries, particularly the ones with homogenous societies. The highest law of the land places Islam, the religion associated with one of the main ethnicity, as the official religion of the nation and allowed the duality of economic system, in particular banking system, whereby conventional banking system exists side-by-side with the Shariah-compliant, Islamic one. By reviewing the pertinent literature on the development of Islamic banking, the reviewed cases on Islamic banking and its contributions to Malaysian society regardless of ethnicity and religion. The discussion in this paper therefore will be directed towards highlighting the laws and cases on Islamic banking and its implication to enhance the application of Islamic banking laws to consumers regardless of ethnicity and religion, in order to maintaining fairness and justice in a multi-ethnic society.

Adoption of Islamic banking in a non-Islamic country: evidence from Uganda

2020 ◽  
Vol 11 (5) ◽  
pp. 989-1007
Author(s):  
Juma Bananuka ◽  
David Katamba ◽  
Irene Nalukenge ◽  
Frank Kabuye ◽  
Kasimu Sendawula
Keyword(s):  
Financial Institutions ◽  
Banking System ◽  
Chief Executive ◽  
Business Community ◽  
Product Launch ◽  
Islamic Banking ◽  
Design Strategies ◽  
Structured Interviews ◽  
Content Type ◽  
Islamic Country

Purpose This paper aims to examine the concept and practice of Islamic banking in the context of a non-Islamic country such as Uganda. Design/methodology/approach Semi-structured interviews were used to elicit the strategies banks may use to ensure that the Islamic banking system is successful and to ascertain those factors that may hinder its success. Chief executive officers of business associations, heads of committees on Islamic banking and religious leaders were interviewed. Findings The strategies used by financial institutions in ensuring the adoption of Islamic banking are now known such as “creating awareness of Islamic banking’s mode of operation among existing and potential clients.” The findings also show that factors such as “lack of trust among clients” may hinder the success of Islamic banking. Research limitations/implications The research findings are useful for informing the deliberations of regulators, the business community and financial institutions. The results are applicable only to those countries in the preparation stages of adopting Islamic banking services for the first time, but they could be generalized to any new product launch in any country. Originality/value This paper may help Ugandan financial institutions to design strategies that will accelerate the adoption and, ultimately, the diffusion of Islamic banking in Uganda.

scholarly journals The feasibility of adopting Islamic Banking system under the existing laws in Uganda

2016 ◽  
Vol 9 (3) ◽  
pp. 417-434 ◽  
Author(s):  
Sulaiman Lujja ◽  
Mustafa Omar Mohammad ◽  
Rusni Bt. Hassan ◽  
Umar A. Oseni
Keyword(s):  
Best Practices ◽  
Banking System ◽  
Relevant Information ◽  
Banking Regulation ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Content Type ◽  
Playing Field ◽  
Market Expansion ◽  
Regulatory Constraints

Purpose In 2014, Islamic finance assets are estimated to have exceeded US$2 trillion with over 100 products and an annual growth of over 20.7 per cent, across more than 76 countries, most of which are members of the Organization of Islamic Cooperation (OIC). Despite this remarkable market expansion, numerous OIC members such as Uganda are yet to fully adopt this unique financial system because of regulatory constraints. Thus, the purpose of this paper is to examine the extent to which Uganda can benchmark the Malaysian experience and best practices to overcome the regulatory challenges in introducing Islamic Banking. Design/methodology/approach This exploratory study adopts qualitative research methods through documentary review to elicit relevant information from the existing laws in Uganda that would accommodate the Islamic Banking system. Interpretive analysis and analytical methods are used to analyze data. Findings The Malaysian experience and best practices of Islamic Banking regulation need to be benchmarked by regulators. Relevant laws which require some amendments include section 37(a) and 38(1) of the Financial Institutions Act 2004 and section 29(3)(a) of the Bank of Uganda Act 2000. Similarly, tax legislation needs amendments to ensure a level playing field for Islamic finance and conventional finance products. Originality/value This is one of the earliest studies on models of Islamic Banking regulation suitable for adoption in Uganda. This study contributes to literature on how other jurisdictions (especially those with less regulatory prudence) could regulate Islamic Banking in a dual banking system jurisdiction.

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.

scholarly journals ISSUES OF FORMING PERSONNEL CAPACITY IN THE CONTEXT OF THE DEVELOPMENT OF THE ISLAMIC BANKING SECTOR IN THE REPUBLIC OF TAJIKISTAN

2020 ◽  
pp. 127-132
Author(s):  
Sh. S. Sharipov
Keyword(s):  
Customer Satisfaction ◽  
Banking Sector ◽  
Banking System ◽  
Training System ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Personnel Training ◽  
Banking Services ◽  
The Republic

The issues of forming personnel capacity in the Republic of Tajikistan, in the context of the launch of the first Bank providing services in accordance with the principles of Islamic Finance have been considered. For the purpose of a comprehensive assessment of the situation, the experience of individual countries in this area of activity, as well as the experience of previous research, ware studied. Conclusions about the state and prospects of development of the Islamic banking system in the current conditions, as well as a description of a number of measures, the implementation of which will ensure the acceleration of formation of the necessary personnel capacity in the Republic of Tajikistan have been given. In particular, the proposed measures address the issues of creating a competitive personnel training system, improving the quality of banking services provided and customer satisfaction.

Islamic Finance Fundamentals With Applications in Malaysia

2016 ◽  
Author(s):  
Shahriza Osman ◽  
Zahiruddin Ghazali ◽  
Syed Mohd Na’im Syed Salim
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Banking System ◽  
Basic Knowledge ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Risk And Uncertainty ◽  
Financial Systems ◽  
Political Economic ◽  
Financial Issues

Islam postulates a unique link of contracts among the creator, man and society on the basis of Syariah law that directly affects the workings of the various social, political, economic, and financial systems. Therefore, to understand the way in which economic affairs and financial institutions are organized in an Islamic system, it is first necessary to comprehend the nature of this relationship. Consequently, one cannot study a particular aspect or part of an Islamic system, economics, for example, in isolation, without having understanding of the basic knowledge of Islamic finance. Islamic finance products are contract-based. This book explains Islamic finance, which refers to the provision of financial services in accordance with Syariah law in chapter one. The Syariah law is the foundation for the establishment of an Islamic banking system. Chapter two illustrates the differences between the principles of Syariah and Tabii. Chapter three explains the Islamic theory of profit. Chapter four is about risk and uncertainty, which is known as gharar in Islamic finance. Chapter five discusses interest/riba, which is the most significance principle of Islamic banking. Chapter six explains some of the financial issues related to Islamic banking.

Sistem Perbankan Islam di Indonesia: Sejarah dan Prospek Pengembangan

2012 ◽  
Vol 3 (1) ◽  
pp. 111
Author(s):  
Suryani Suryani
Keyword(s):  
Economic System ◽  
Banking System ◽  
Moral Values ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Free System ◽  
Western Countries ◽  
Islamic Countries ◽  
Financial Transactions

Islamic banking or sharia banking is a new phenomenon in the modern worldeconomy, its emergence as the intense efforts made by Islamic scholars in the development of Islamic economics in which it will be able to replace theconventional economic system based on the interest to the interest-freesystem. That’s why sharia banking system apply an interest-free system inoperation. Therefore, the closest term to define sharia banking is a bank that operates based on Islamic sharia principles, by reference to the Al-Quran and Sunnah as the basis or the legal and operational basis. Islamic banks were originally developed from the response of some economists and practitioners of Islamic banking that seek to accommodate pressure from various parties who want to make available services of the financial transactions carried out in line with moral values and principles of Islamic sharia. On his journey, sharia-based banking system is increasingly popular not only in Islamic countries but also western countries, characterized by increasingly the number of banks that implement this concept

scholarly journals THE OBSTACLE FACTORS OF MUSHARAKAH AND MUDHARABAH APPLICATION IN PAKISTAN

2020 ◽  
Vol 17 (2) ◽  
Author(s):  
Muhammad Khan ◽  
◽  
Dodik Siswantoro ◽  
Abid Ur Rahman ◽  
◽  
...  
Keyword(s):  
Critical Analysis ◽  
Banking System ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Islamic Jurisprudence ◽  
Main Factors ◽  
Internal And External Factors ◽  
Regulatory Constraint

Islamic Banking is based on the Islamic financial system. It is a banking system whose fundamental rules and regulations are established on Shariah laws i.e., Islamic jurisprudence originated from the Quran and Sunnah of the Prophet Muhammad peace be upon him. Its functions must comply with Shariah rules and must not violate any Shariah principle. The Islamic finance system is based on Profit-loss sharing financing namely, Musharakah and Mudharabah but there are numerous issues and challenges faced by Islamic bank during the implementation of Musharakah and Mudharabah financing contracts. The various paper has been revealed some of the internal and external factors in this context, but the study is still unexplored in Pakistan. This paper aims to highlight those obstacles factors that affect the application of Musharakah and Mudharabah financing by Islamic Banks in Pakistan. This paper is based on the critical analysis of the related literature on the concepts of Profit-loss sharing based financing by Islamic Banks. The finding suggests 4 (four) main factors which hinder the application of Musharakah and Mudharabah by Islamic bank in Pakistan namely high risk, lack of awareness, Regulatory constraint and Low rate of return. Finally, this paper concludes by making recommendations that may be adopted by Islamic banks and regulators to facilitate the promotion of Musharakah and Mudharabah Financing.

scholarly journals Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact

2022 ◽  
Vol 14 (2) ◽  
pp. 916
Author(s):  
Evren Tok ◽  
Abdurahman Jemal Yesuf
Keyword(s):  
Social Impact ◽  
Empirical Studies ◽  
Banking System ◽  
Annual Reports ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Real Economy ◽  
Conventional Banks ◽  
Asset Quality

Value-based banks strive to build a self-sustaining banking model with inclusive and transparent governance that is sustainable and resilient to external disturbances. Initiatives for value-based intermediation in Islamic finance started in Malaysia. The growth in VBIBs is accompanied by claims about its relative resilience to crisis and efficiency compared to VBBs and conventional banks. However, little empirical evidence is available to support such claims. This study aims to analyze the resilience and efficiency of VBIBs compared to the VBBs and GSIBs. It highlights the role of value-based strategy in developing a sound and resilient Islamic banking system to overcome future crises and further strengthen the impacts of Islamic banks. The study used quantitative and content analysis research methods, with data collected from the annual reports of 10 VBIBs from 2017 to 2020. The empirical results show that VBIBs have better risk-adjusted capital levels and asset quality, enabling them to be more resilient during crises. They provide more satisfactory returns compared to the VBBs and GSIBs. However, VBBs have a better asset structure and growth rate, which contributes to the real economy. The overall findings suggest that adopting value-based strategies in Islamic banking improve banks’ sustainability, resilience, and social impacts by concentrating resources on value-based activities that provide economic resiliency and enhance inclusive and sustainable economic growth. The study fills gaps in the current Islamic finance literature concerning empirical studies on value-based Islamic banking. It also helps practitioners to understand the relative efficiency, resilience, and social impact of VBIBs.

Pemikiran Maududi tentang Bank Syariah

2016 ◽  
Vol 1 ◽  
pp. 280-286
Author(s):  
Akhmad Faozan
Keyword(s):  
Economic System ◽  
Banking System ◽  
Profit Sharing ◽  
Islamic Banking ◽  
Islamic State ◽  
Background Factors ◽  
Islamic Bank ◽  
Islamic Economic

One thinker who care about the Muslims’economy is Maududi. Banking problems is one issue that can not escape his attention. It offers a model or banking system in accordance with Islamic principles. According to him, the model or the system can deliver a fair banking concept. Maududi thinking about islamic bank consists of two things, namely the elimination of interest system and profit sharing system in its operations. Although the system was abolished interest of Islamic banking, he remains optimistic that people will still be saving money in the bank. According to Maududi, in the profit sharing system customers will no longer earn interest and instead they will get something in the term is the result. Profit received from the parties developing the bank customer money will be distribute between the bank and the customer in accordance with the agreement. Meanwhile, the background factors Maududi thinking about his obsession about Islamic bank is to stand an Islamic state that would load the Islamic economic system as well.

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