Non-Usury Bank Corporation (NUBankCo): The Solution to Islamic Banking

2019 ◽  
Vol 2 (1) ◽  
pp. 53-66
Author(s):  
Bijan Bidabad
Keyword(s):  
Corporate Governance ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Financial Institution ◽  
Precious Metals ◽  
Behavioral Model ◽  
Islamic Banking ◽  
Currency Exchange ◽  
Financial Characteristics ◽  
Conventional Banks

In this paper, we are going to introduce a new Islamic financial institution with elaborated economic and financial characteristics. «Non-Usury Bank Corporation» (NUBankCo) is defined in a way that depositors are the shareholders of the Bank. This corporation is a new kind of shared ownership corporation which its shareholders are deposit holders and their deposits work as corporation’s equities. The defined bank can perform non-usury operations, and by designing a behavioral model, it is shown that NUBankCo can draw an environment that the welfare of society is to be maximized. Mobility of deposit resources in NUBankCo is less than conventional banks, and there are fewer conflicts between large and small shareholders/depositors and limits the emergence of shareholders’ cartels and thus huge sudden outflow of funds which creates bankruptcy crises.OECD’s corporate governance criteria are completely adaptable to this bank. Other pronouncements like Basel, AAOFI, IFSB, and FSF can be applied to this bank. NUBankCo can be established in different countries and can be adapted to different monetary, banking, foreign exchange, and commercial laws and regulations and can coexist in competition with conventional banks.NUbankCo will be Islamic in deposit mobilization side and will be Islamic in the loan/credit side for certain Islamic contracts and banking operations. Foreign currency exchange operations, bonds, commercial papers, and precious metals transactions, cash and draft operations, and credit and beneloan (non-interest loan) operations are characterized for NUBankCo to be fully Islamic.

scholarly journals Non-Usury Banking Fits the Change Strategy: The Solution to Revive the Economy

2019 ◽  
Vol 5 (1) ◽  
pp. 49-61
Author(s):  
Bijan Bidabad
Keyword(s):  
Financial Institution ◽  
Behavioral Model ◽  
Economic Crises ◽  
Change Strategy ◽  
Long Time ◽  
Financial Characteristics ◽  
Conventional Banks ◽  
Shared Ownership

Based on the working in different fields of sciences for a long time, a solution to change the structure of banking products as a solution to economic crises is proposed. By sharing the risks economically this solution can make economic integrity among all economic sectors.In this paper, we are going to introduce a new Islamic financial institution with elaborated economic and financial characteristics. «Non-Usury Bank Corporation» (NUBankCo) is defined in a way that depositors are the shareholders of the Bank. This corporation is a new kind of shared ownership corporation, which its shareholders are deposit holders and their deposits work as corporation’s equities. The defined bank can perform non-usury operations, and by designing a behavioral model, it is shown that NUBankCo can draw an environment that the welfare of society is to be maximized. Mobility of deposit resources in NUBankCo is less than conventional banks, and there are fewer conflicts between large and small shareholders/depositors and limits the emergence of shareholders’ cartels and thus huge sudden outflow of funds which creates bankruptcy crises.

scholarly journals Uprawnienia kredytobiorcy zaciągającego kredyt denominowany lub indeksowany do waluty innej niż polska w świetle ustawy antyspreadowej

Ekonomia ◽  
2018 ◽  
Vol 24 (1) ◽  
pp. 39-56
Author(s):  
Magdalena Paleczna ◽  
Edyta Rutkowska-Tomaszewska
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Consumer Credit ◽  
Competitive Position ◽  
Credit Facility ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
Credit Law ◽  
Credit Contract

Rights of the borrower committing denominated or indexed loan in a foreign currency in light of the Anti-spread ActIn 2004–2008 banks offered consumer denominated loan in a foreign currency, which was a competitive position in relation to a PLN credit facility. Banks had not informed about foreign exchange differences, therefore had caused increase in household indebtedness. Banks also had reserved that consumer has to buy currency only from the bank-lender. In 2011 the Anti-spread Act was adopted, which amended banking law and consumer credit law. Creditors were obligated to inform consumer about rules of determining the manners and dates of fixing the currency exchange rate on the basis of which in particular the amount of credit, its tranches and principal and interest instalments are calculated, and the rules of converting into the currency of credit disbursement or repayment. That information and information about the rules of opening and operating the account shall be concluded in a credit contract. Borrower can repay principal and interest instalments and prepay the full or partial amount of the loan directly in that currency.

scholarly journals Kontrak Tukaran Matawang Asing Melalui Internet: Satu Tinjauan Hukum

2015 ◽  
Author(s):  
Alias Azhar ◽  
Mohd Zaki Zainol ◽  
Mohd. Nizho Abdul Rahman
Keyword(s):  
International Trade ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Islamic Law ◽  
The Internet ◽  
Modus Operandi ◽  
Legal Assessment ◽  
Currency Exchange ◽  
Internet Discussion

Foreign currency exchange contracts or foreign exchange (forex) began to arise when there is an international trade transaction involves two countries using different currencies. The legal assessment of the said issue should apply methods of interpretation and understanding of the terms to be applied in the contract. Terms such as leverage, hedging (hedging) and swap are thoroughly evaluated based on a practical modus operandi allowing for the precise legal assessment. This article discusses the contractual issues and modus operandi of foreign currency transactions and its application from the practical aspects using the Internet. Discussion on the legal assessment is based on the Islamic law of transactions on applied type of contract ('akad), the use of hedging and leverage in foreign exchange contracts via the Internet. Keywords: Contract, Foreign Exchange, Islamic Transaction, Leverage, Muamalat  

scholarly journals Analysis on Corporate Governance Influences toward Banking Efficiency with Bank Category as Moderator Variable

2015 ◽  
Vol 6 (1) ◽  
pp. 127 ◽  
Author(s):  
Lidiyawati Lidiyawati
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Islamic Law ◽  
Financial Institution ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Moderator Variable ◽  
Islamic Bank ◽  
Data Limitations ◽  
Conventional Bank

Corporate governance system of Sharia financial institution that based on Islamic law may result more  variables principles then conventional owns. The restriction of usury are highly speculative transaction, embedded prohibited matter are main features in Sharia business institution. Sharia Supervisory Board, as board that supervises banking practices conforms to Sharia stipulations, hold strong important role within Islamic banking. Both important points above had direct effects on efficiency which attained by Islamic banking compared with conventional banking. This study examines the influence of corporate governance implementation toward efficiency banking sector with bank category as moderator variable. This study hypothesize that corporate governance has significant influences toward bank’s efficiencies, the influence of corporate governance toward Islamic bank efficiencies is higher than conventional bank, and level of Islamicbank efficiencies is higher than conventional bank. Measurement of efficiencies is using Stochastic Frontier Approach program, and then using SPSS in procces hypothetical model. The results of the study do not support the hypothesis. Examined result shows that statically corporate governance is not influenced by bank efficiency achievement. Corporate governance influences over Islamic bank has not show higher significance than conventional and Islamic bank efficiencies remain steady. Data limitations, complexity of the efficiency measures and the complexity of the operation of Islamic banks may explain the finding.

scholarly journals The Principal of Risk and Profit Sharing in Islamic Banking

2018 ◽  
Vol 3 (2) ◽  
pp. 253-270
Author(s):  
Eka Supriatiningsih
Keyword(s):  
Current Account ◽  
Foreign Currency ◽  
Banking System ◽  
Profit Sharing ◽  
Islamic Banking ◽  
Careful Study ◽  
Time Deposits ◽  
Development Goals ◽  
Conventional Banks ◽  
Operational Constraints

The role of banking that is very strategic in achieving Indonesia's economic development goals recently, requires a careful study of banking concepts that have been operationalized, both conceptually and their applications, so as to create a strong banking system in the era of globalization in the future. The existence of Islamic banks in Indonesia has not been fully accepted, there are still some people who equate with conventional banks. Based on the background of the problem above, which is the identification of the problem in this paper, namely: 1) What is the application of the principle of sharing the results and risks in fundraising activities in Islamic banking? 2) What are the operational constraints faced in implementing profit sharing and risk principles in Islamic Banking?. Based on the discussion above, conclusions can be drawn, as follows: 1) The implementation of fundraising using the profit sharing principle in Islamic Banking is carried out using the principles of Wadiah and Mudharabah. The Wadiah principle uses the Wadiah Current Account using products such as: Singapore BSM Dollar Current Account, BSM Current Account, BSM Currency Current Account, BSM Ouro Current Account, Bank Muamalat Wadiah Deposit Account in Rupiah and Foreign Currency, personal and corporate, and Wadiah Savings Account using products like: Junior Community Savings which is a special savings for students, Simpatik Savings, BSM Dollar Savings. While the mudharabah principle uses the Tabungan Mudharabah contract using products such as: Mudharabah Savings Accounts are Hajj Savings, Investa Scholar Savings, Qurban Savings and Savings Cards and time deposits for mudharabah use products such as: Bank Syariah Mandiri Savings, BSM Foreign Currency Deposits and Mudharabah deposits. In calculating profit sharing only in Mudharabah principles, the wadiah principle is only a bonus given to the bank's willingness. The pattern of calculation for results is to use the principle of profit sharing, which means that the results are calculated from the total income of the fund management and the amount of profit sharing depends on the initial agreement, 2) There are a number of operational constraints faced by Sharia Banking in financing Financing Results such as limited human resources, Islamic Banking management, limited Office Networks, and still weak government regulations on Islamic Banking.

scholarly journals An Intelligent Event-Sentiment-Based Daily Foreign Exchange Rate Forecasting System

2019 ◽  
Vol 9 (15) ◽  
pp. 2980 ◽  
Author(s):  
Muhammad Yasir ◽  
Mehr Yahya Durrani ◽  
Sitara Afzal ◽  
Muazzam Maqsood ◽  
Farhan Aadil ◽  
...  
Keyword(s):  
Deep Learning ◽  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Foreign Exchange Rate ◽  
Exchange Rate Forecasting ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
Us Dollar ◽  
The Exchange Rate

Financial time series analysis is an important research area that can predict various economic indicators such as the foreign currency exchange rate. In this paper, a deep-learning-based model is proposed to forecast the foreign exchange rate. Since the currency market is volatile and susceptible to ongoing social and political events, the proposed model incorporates event sentiments to accurately predict the exchange rate. Moreover, as the currency market is heavily dependent upon highly volatile factors such as gold and crude oil prices, we considered these sensitive factors for exchange rate forecasting. The validity of the model is tested over three currency exchange rates, which are Pak Rupee to US dollar (PKR/USD), British pound sterling to US dollar (GBP/USD), and Hong Kong Dollar to US dollar (HKD/USD). The study also shows the importance of incorporating investor sentiment of local and foreign macro-level events for accurate forecasting of the exchange rate. We processed approximately 5.9 million tweets to extract major events’ sentiment. The results show that this deep-learning-based model is a better predictor of foreign currency exchange rate in comparison with statistical techniques normally employed for prediction. The results present evidence that the exchange rate of all the three countries is more exposed to events happening in the US.

scholarly journals Tourism Demand Analysis Using Probabilistic Travel Model: A Study In Pokhara

Pravaha ◽  
2018 ◽  
Vol 24 (1) ◽  
pp. 58-63
Author(s):  
Dila Ram Bhandari
Keyword(s):  
Foreign Exchange ◽  
Foreign Currency ◽  
Demand Analysis ◽  
Tourism Demand ◽  
Policy Makers ◽  
Foreign Earnings ◽  
Currency Exchange ◽  
Tourism Sector ◽  
International Tourist ◽  
The World

Tourism is now one of the largest industries in the world that has developed alongside the fascinating concept of eco-tourism. Nepal Tourism Policy 2009 identifies tourism sector as an important vehicle for economic and social development. Revenue from tourism sector is observed from foreign currency exchange made by tourists and tourism industries as proxy of income. According to Tourism Towards 2030, the number of international tourist arrivals worldwide is expected to increase by an average of 3.3% a year over the period 2010 to 2030. At the projected rate of growth, international tourist arrivals worldwide are expected to reach 1.4 billion by 2020, and 1.8 billion by the year 2030. Nepal aims to transform its tourism sector into one of the largest foreign exchange earners in 2016 by attracting 2.5 million high spending tourists. Tourism was ranked as the fifth largest source of foreign exchange earnings in 2012 and third largest in 2013 contributing 5.2 percent to total foreign earnings of the country. This study shows the tourism infrastructure as well as seasonal arrival of tourists in Nepal and to develop the probabilistic travel model on the basis of tourist perception which will help the tourism department for the further economic development of the area. R-Studio based on data from the sample period from 2008 to 2016. The formula presented in this study can be used by policy makers to calculate future foreign exchange earnings, employment, arrivals and prices related to tourism in Nepal. Pravaha Vol. 24, No. 1, 2018, Page: 58-63

scholarly journals Forecasting INR Exchange Rate Against USD, GBP, JPY, SGD, EUR, AED Using Machine Learning

2021 ◽  
pp. 684-689
Author(s):  
Sumith Pevekar
Keyword(s):  
Machine Learning ◽  
Exchange Rate ◽  
Random Forest ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Foreign Exchange Rate ◽  
Random Forest Algorithm ◽  
Currency Exchange ◽  
Predicting Performance ◽  
Machine Learning Model

The price of a native currency expressed in terms of another currency is known as a foreign exchange rate. In other terms, a foreign exchange rate compares the value of one currency to that of another. The value of standardized currencies varies with demand, supply, and consumer confidence around the world due to which their values fluctuate over time. To forecast the exchange rate of INR, I have developed a machine learning model. The model was trained to estimate six foreign currency exchange rates against the Indian Rupee using historical data. This model uses Random Forest algorithm to train and predict the values. The suggested system’s predicting performance is assessed and contrasted using statistical metrics. According to the findings, the Random Forest algorithm-based model predicts well and achieves an accuracy of 93.61%. KEYWORDS: Regression, Random Forest, Exchange Rate, INR

scholarly journals The Requisite Knowledge for Construction Professionals in the Middle East Regarding Foreign Exchange Currency Fluctuation Risk The Requisite Knowledge for Construction Professionals in the Middle East Regarding Foreign Exchange Currency Fluctuation Risk

2020 ◽  
Author(s):  
Haitham Almsaeed
Keyword(s):  
Middle East ◽  
Construction Industry ◽  
Foreign Exchange ◽  
Global Economy ◽  
Foreign Currency ◽  
Operating Performance ◽  
Oil Prices ◽  
Currency Exchange ◽  
Exchange Rate Movements ◽  
The Impact

Construction is commonly known as a high-risk business; the risks and uncertainties associated with construction activities are usually higher and more dynamic than any other industry. One of the risks imposed on the firms working abroad is related to the impact of currency fluctuation on operating performance. In the Middle East, the data collected on the ground indicate that many construction professionals, including estimators and cost controllers, either lack the necessary related knowledge or they tend to pay insufficient attention to this critical risk in their projects. Because of the unstable global economy, a decreasing pipeline of new opportunities due to the deterioration of oil prices, and the more laborious and lengthy payment terms enforced in contracts across the Middle East, exchange rate movements play an increasing role in the contractors performance. Those who work in this region have begun to realise the challenges associated with managing the foreign currency exchange (FOREX) fluctuation risk. This article provides an overview of the currency fluctuation risk within the context of the construction industry, identifies the associated challenges and attempts to offer a framework for the regional companies that could mitigate the FOREX risk.

scholarly journals Pengaruh Inflasi, Suku Bunga, Nilai Tukar Valas Dan Jumlah Uang Beredar Terhadap Profitabilitas Pada Perbankan Syariah Di Indonesia Periode 2005-2009

2012 ◽  
Vol 3 (2) ◽  
pp. 147 ◽  
Author(s):  
Desi Marilin Swandayani ◽  
Rohmawati Kusumaningtias
Keyword(s):  
Interest Rates ◽  
Foreign Currency ◽  
Linear Regression Analysis ◽  
Predictive Ability ◽  
Multiple Linear Regression Analysis ◽  
Islamic Banking ◽  
Test Results ◽  
The Public ◽  
Currency Exchange ◽  
Currency Exchange Rates

Islamic finance quality show that performance improved, as indicated by the growing share of financing for the results of mudharabah and musyarakah. This study was conducted to examine the effect of macro economic indicators as measured by inflation, interest rates, foreign currency exchange rates and money supply to the ROA of Islamic Banking in Indonesia. Data analysis techniques used in this study is multiple linear regression analysis. F test results showed that simultaneous independent variables affect ROA. While the results of t tests showed that the inflation variable showed no significant effect on ROA. This is because, when inflation is high then the public more confidence in the Islamic banking compared with conventional banking. Predictive ability of four variables on ROA in this study by 19.8%, while the remaining 80.2% influenced by other factors that are not included in the research model.

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