scholarly journals MAQASID AL-SHARIAH PHILOSOPHY IN MONETARY REGIME TOWARDS INCLUSIVE SUSTAINABLE GROWTH

2019 ◽  
Vol 1 (02) ◽  
pp. 95
Author(s):  
Mohd Noor Omar ◽  
Norhanim Mat Sari
Keyword(s):  
Monetary Policy ◽  
Financial Institutions ◽  
Risk Sharing ◽  
Well Being ◽  
Sustainable Growth ◽  
Distribution Of Wealth ◽  
Monetary System ◽  
Monetary Regime ◽  
Islamic Financial Institutions ◽  
Economic Well Being

This paper studies on the Maqasid al-Shariah philosophy with the aim establish an appropriate Islamic monetary regime in achieving the aspiration of Shariah that promote inclusive and sustainable growth of the ecosystem.From the analysis, this study shows that Islamic monetary mechanism and instruments as well as Islamic financial institutions (IFIs) operations are still exposed to the practice that are prohibited in Islam and also influenced by monetary policy tools and transmission channels set by the Central Bank.  The study supports and affirms the establishment of an Islamic monetary system that transmits the monetary policy through channels with interest free and risk sharing Islamic instruments. For that, an equitable distribution of wealth for social Islamic justice as well as a balance inclusive and sustainable economic well-being would be attained.

scholarly journals A Research on Stress Testing Approach Towards Evaluating Credit Risk of a Financial Institution

2021 ◽  
Author(s):  
S M Nazmuz Sakib
Keyword(s):  
Financial Institutions ◽  
Stress Testing ◽  
Financial Institution ◽  
Well Being ◽  
Status Quo ◽  
Science Theory ◽  
The Future ◽  
Financial Framework ◽  
Economic Well Being ◽  
Credit Institutions

The stress testing methodology should be implemented and applied to the entity's overall financial system at least annually, and if the organization operates in a volatile economy, it should be performed at least twice a year. Finally, managers should include regular training and development sessions for relevant employees of their organization to be fully informed and more informed and informed, considering the evolving science, theory and practicality of a discrete range of stress testing mechanisms that can be appropriately applied to overall financial framework and system of multiple financial institutions and banks. In addition, stress testing is essentially a methodology that collects and analyzes certain future macro-prudential and micro-prudential economic drivers and indicators, the primary purpose of which is to assess the future financial and economic well-being, level of growth and status quo of a financial institution, bank, organization, credit institution or economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. with the primary intention of assessing the future financial and economic well-being, level of growth and status quo of a group of financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically targeted and incorporated into a paper that substantially and broadly discussed and summarized the importance of the feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. with the primary intention of assessing the future financial and economic well-being, level of growth and status quo of a group of financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. the level of growth and status quo of the financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. the level of growth and status quo of the financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries.

What Policy for Islamic Financial Literacy?

10.26414/a148 ◽  
2021 ◽  
Author(s):  
Ahmed Tahiri Jouti
Keyword(s):  
Literature Review ◽  
Financial Institutions ◽  
Financial Literacy ◽  
Sustainable Growth ◽  
Islamic Finance ◽  
Finance Industry ◽  
Literacy Policy ◽  
Islamic Financial Institutions ◽  
Financial Behaviour

This paper addresses the concept of financial literacy in Islamic finance and suggests a methodology to elaborate an effective Islamic financial literacy policy (IFLP). Based on a literature review, the paper summarizes the conclusions of studies and surveys conducted in the field of conventional financial literacy while identifying the specificities of the Islamic finance industry. Indeed, the paper would help financial authorities and Islamic financial institutions in elaborating Islamic financial literacy policies (IFLPs) in order to contribute to the sustainable growth of the industry. It promotes the idea that qualitative aspects are worth studying when elaborating an Islamic financial literacy policy that has to take into account many factors such as the maturity of the industry, the objectives of the policy (inclusion or migration), the degree of Shari’ah awareness, the understanding of Arabic terminologies, etc. Finally, the IFLP measurement should include quantitative (Total reach and number of people reached) as well as qualitative aspects (level of financial literacy, impact on financial behaviour).

scholarly journals Life-Cycle and Its Impact on the Disparity in Economic Well-Being among U.S. Sole Proprietor Households: Evidence from Two National Surveys

2019 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Hisham S. El-Osta
Keyword(s):  
Life Cycle ◽  
Social Welfare ◽  
Well Being ◽  
Decomposition Methods ◽  
Farm Households ◽  
National Surveys ◽  
Distribution Of Wealth ◽  
Using Data ◽  
The Impact ◽  
Economic Well Being

The impact of age on the distribution of wealth among U.S. sole proprietor households is analyzed using data from two national surveys in conjunction with disparity and social welfare decomposition methods. Results show higher disparity in wealth when the household is a non-farm rather than a farm sole proprietor household. The cohort with the greatest need in terms of targeted programs is the group of farm or non-farm households headed by individuals younger than 35.

The role of Islamic social finance during Covid-19 pandemic in Indonesia’s economic recovery

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ascarya Ascarya
Keyword(s):  
Financial Institutions ◽  
Quantitative Methods ◽  
Qualitative Content Analysis ◽  
Well Being ◽  
Safety Net ◽  
Economic Recovery ◽  
Economic Surplus ◽  
Content Type ◽  
Islamic Financial Institutions ◽  
The Government

Purpose This study aims to propose Islamic solutions to the Covid-19 health and economic crises, specifically using Islamic social finance (ISF) instruments, including zakat, infaq and waqf. Design/methodology/approach This study applies the qualitative content analysis method, guided by a model of composite approaches of poverty alleviation in Islam, integrated Islamic commercial and social finance (IICSF) and crisis management of Umar bin Khattab, to construct various programs and/or policy actions toward economic recovery in Indonesia. Findings The results show that ISF with its instruments, especially zakat, infaq and waqf could help the government and the economy to recover from the crisis. The proposed solutions include: save lives, including medical assistance using zakat-infaq and health-care waqf using waqf; save households, by creating a social safety net and graduation program using zakat-infaq; save businesses, especially micro-small enterprises (MSEs), through financial and business assistance (especially digital marketing) leveraging zakat-infaq-waqf and save financial institutions, especially micro-small financial institutions, by the development of cash waqf and the adoption of fintech and IICSF, especially in Islamic financial institutions targeting MSEs. Research limitations/implications This study is exploratory in nature, which needs further investigations using more sophisticated qualitative and/or quantitative methods. Practical implications If the above programs using ISF instruments are implemented, the economic surplus would be re-established and the acceleration of economic recovery can be realized. Social implications The successful adoption of ISF could at the same time reduce poverty, accelerate MSEs development and improve equitable well-being. Originality/value The Covid-19 pandemic has caused health, economic and social problems, which must be solved holistically, including ISF within IICSF.

Inequality and Discontent: A Nonlinear Hypothesis

1974 ◽  
Vol 26 (4) ◽  
pp. 453-472 ◽  
Author(s):  
Jack Nagel
Keyword(s):  
Statistical Methods ◽  
Linear Relation ◽  
Well Being ◽  
Important Case ◽  
Absolute Level ◽  
Distribution Of Wealth ◽  
South Vietnam ◽  
Economic Well Being ◽  
Positive Linear Relation ◽  
Cross National

At least since Aristotle, theorists have believed that political dis-content and its consequents—protest, instability, violence, revolution—depend not only on the absolute level of economic well-being, but also on the distribution of wealth. Contemporary political analysts have tried to test this ancient assumption using modern statistical methods. Their results are distressingly confusing. One cross-national investigation finds the commonsensical positive linear relation: the more the inequality, the greater the instability. A second study purports to show the opposite relation in the important case of South Vietnam: the greater the inequality, the less the support for revolution. And a third analysis, also of South Vietnam, detects no relation at all between inequality and rebellion.

scholarly journals Peramalan Bisnis Unit Usaha Syariah PT ABC dalam Tantangan Spin Off

2021 ◽  
Vol 5 (02) ◽  
pp. 231
Author(s):  
Tatang Nurhidayat
Keyword(s):  
Financial Institutions ◽  
Economies Of Scale ◽  
Business Plan ◽  
Sustainable Growth ◽  
Insurance Companies ◽  
Business Unit ◽  
General Insurance ◽  
Islamic Financial Institutions ◽  
Strategic Issue ◽  
Box Method

Spin off is separation of the sharia unit into a new company independent from its conventional parent. Spin off is a strategic issue for sustainability and development of Islamic financial institutions including Sharia Insurance. Independence and focus on the spin off process are positive. However, the economies of scale for stability and sustainable growth become challenges. The problem observed in this study is the ability of the general insurance sharia business unit to fulfill the spin off obligation as mandated in the Insurance Act number 40 of 2014. This Act stated that at the latest in 2024 it has to be spinned off by submitting a business plan to OJK no later than 2020. This study use Time Box Box method-Jenkins (ARIMA). The results of this study are expected to be consideration factor and information for General Insurance Companies, especially PT ABC, in determining the spin off business plan using forecasting.

Part II Islamic Law and Contracts in Practice, 6 Musharaka and Mudaraba

2020 ◽  
Author(s):  
Johansen Julian ◽  
Hanif Atif
Keyword(s):  
Financial Institutions ◽  
Risk Sharing ◽  
Joint Venture ◽  
Islamic Law ◽  
Islamic Finance ◽  
Financial Applications ◽  
Islamic Financial Institutions ◽  
Vital Component ◽  
Shari’A Compliance

This chapter explores the origins, characteristics, and modern financial applications of two of the oldest forms of Islamic joint venture contracts: musharaka and mudaraba. A commonly held view of Islamic finance, based on the concept of transaction risk sharing, is that it is ‘equity-based’ rather than ‘debt-based’, and constitutes a ‘quasi-equity’ interest for each investor. This is certainly true for musharaka and mudaraba. They have, however, been adapted for the purpose of corporate and other modern financings to include debt-related elements: this is largely to allow financing institutions to classify these as equity-related or quasi-debt instruments from a risk perspective, whilst retaining the key hallmarks of a joint venture. In some cases, particularly in mudaraba structures, those debt elements closely follow provisions used in syndicated financings. From a Shari’a compliance perspective, then, ‘risk-participation’ remains the essential and distinguishing feature of musharaka and mudaraba, and secures their importance as a vital component of Islamic finance. At the same time, however, Islamic financial institutions will continue to look for ways in which to bridge the ‘risk gap’ between equity and debt instruments.

Islamic marketing ethics for Islamic financial institutions

2019 ◽  
Vol 36 (1) ◽  
pp. 1-11 ◽  
Author(s):  
Ameenullah Aman
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
Well Being ◽  
Marketing Mix ◽  
Research Literature ◽  
Marketing Ethics ◽  
Product Price ◽  
Content Type ◽  
Islamic Financial Institutions ◽  
Islamic Values

Purpose To wipe out the criticism of being a replica of conventional financial institution, Islamic financial institutions (IFIs) need to comply with Islamic principles not only on financial side but also while branding and marketing their products and services. This will bring the coherence between their overall market image and core business activities. This paper aims to discuss in detail the Islamic marketing traits relevant to the IFIs for positioning and offering their products. Design/methodology/approach This study follows the research design based on reviewing existing sources of Qura’an and Hadith, the secondary research literature on this novel topic and substantial intellectual discourse with the field experts. Findings It is criticized that IFIs lack the spirit of Islamic values for marketing and branding a commercial business entity. Therefore, this paper outline the differences between Islamic and conventional marketing. Also, it contributes to explain the traits of Islamic marketing mix relevant to the IFIs based on Islamic established principles. Research limitations/implications This study gives valuable practical guidelines for the marketing policymakers of Islamic financial institutions. Islamic marketing mix; product, price, place and promotion, related strategies can be designed and branded keeping the true spirit of Islamic marketing values intact. Practical implications This study is practically important for Islamic financial intuitions to sustain their “Islamic” image by making sure of Islamic principles in their product development, pricing, promotions and distribution. Social implications The socioeconomic system is the brand of Islamic economics and finance. IFIs being the stakeholders of this brand can contribute to the well-being of the society by enhancing their acceptability with the help of divine image and operations. Originality/value Literature on practical Islamic marketing approach in particular to the IFIs is very limited. This study gives comprehensive findings on all the major aspects of marketing based on Islamic values for Islamic financial institutions.

scholarly journals Financial Inclusion and the Goal of Distributive Justice in Islamic Economics

2021 ◽  
pp. 66-77
Author(s):  
Suziraha Dzulkepli ◽  
Mohd Nizam Barom
Keyword(s):  
Distributive Justice ◽  
Financial Services ◽  
Risk Sharing ◽  
Theoretical Foundation ◽  
Well Being ◽  
Financial Inclusion ◽  
Wealth Concentration ◽  
2030 Agenda ◽  
Economic Well Being

The unprecedented level of income inequality and wealth concentration throughout the world today has pose a foremost challenge in the efforts towards realising inclusive and sustainable development. One of the means to achieve this 2030 Agenda that has been strongly promoted by the international community is through the concept of financial inclusion. The dimensions of financial inclusion, which include access, usage and quality of financial services for all have been demonstrated to have positive impacts on increasing the ability of the poor and underprivileged groups to improve their economic well-being. Additionally, the literature has also identified two additional financial inclusion features of Islamic finance namely risk-sharing and redistribution, which can further contribute to the goal of distributive justice as aspired in Islamic economics. Nevertheless, despite the numerous works on financial inclusion and distributive justice in the literature of Islamic economics and finance, a specific framework to link financial inclusion with the goal of distributive justice is still absent in the literature.  Therefore, the objective of this paper is to conceptualize a framework that links the dimensions of financial inclusion with the three phases of realising distributive justice, i.e. pre-production, post-production, and redistribution. This conceptual framework provides the necessary theoretical foundation and operational guideline for the promotion of financial inclusion as part of the efforts towards realising the goal of distributive justice in Islamic economics.

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