scholarly journals ENGLISH: Rethinking Ribā and the ‘Islamic’ Banking Experimentation

rahatulquloob ◽  
2021 ◽  
pp. 81-103
Author(s):  
Waqas Ali Haider ◽  
Muhammad Arsalan Aqeeq ◽  
Dr. Abdul Ghaffar
Keyword(s):  
Economic Development ◽  
Property Rights ◽  
Financial Stability ◽  
Critical Appraisal ◽  
Financial Intermediation ◽  
Allocative Efficiency ◽  
Islamic Banking ◽  
Deterministic Approach ◽  
Banking And Finance ◽  
Definition Of

The efficiency of a financial intermediation system is assessed by its ability to achieve allocative efficiency, asset transformation and the subsequent economic development. In case of an Islamic Banking and Finance as an alternate financial intermediation system adherence to the injunction of Islam is also critical. A critical appraisal of the state of contemporary Islamic Banking and finance (IBF) reveals that IBF has neither been able to achieve the aspirations of Islamic rhetoric, nor has been efficient in terms of asset transformation and economic development. This paper is an intuitive pursuit to explore the economic sense of established principles of IBF, and the reasons of the persistent divergence of IBF, being accused to be based on ruses and sophistry. Disentangling the varying viewpoints, the underdevelopment of IBF has been attributed to misinterpretation of Ribā, which has been explicated through a narrow fiqhi and legally deterministic approach. Deeming ‘a collaborative and dynamic Ijtihād’ as the elixir, this paper insists on the exigency of revisiting the definition of Ribā through a dynamic and collaborative Ijtihādi effort – i.e. a definition that incorporates the modern modes of economic cooperation and the contemporary financial intermediation ecosystem. The paper articulates Ribā in an agency theoretic framework to eschew expropriation of wealth, and assure protection of property rights, to sustain financial stability and economic development.

scholarly journals What Muslim Minorities Should do in Absence of Islamic Banking and Finance?

2017 ◽  
Author(s):  
Mohammad Manzoor Malik
Keyword(s):  
Economic Development ◽  
Islamic Banking ◽  
Banking And Finance ◽  
State Of Affairs ◽  
Muslim Minorities ◽  
Causes Of Poverty

Muslim minorities that do not avail any facility of Islamic banking and finance are in need to think over the problems and issues related to their overall economic development. The lack of Islamically desired banking and finance amounts to the major causes of poverty, economicunderdevelopment, and renders these minorities as less creative and innovative in setting up big businesses and corporations. The question arises what should be done or is possible to be done to overcome this state of affairs.

scholarly journals Prospective solvency in ensuring the financial stability of the enterprise

2021 ◽  
pp. 162-168
Author(s):  
Vita Vynogradnya ◽  
Lyudmila Burdonos
Keyword(s):  
Economic Development ◽  
Financial Stability ◽  
Synthesis Method ◽  
Enterprise Management ◽  
Stable Operation ◽  
Socio Economic Development ◽  
The Future ◽  
Analysis And Synthesis ◽  
Definition Of

 Issues of ensuring the financial stability of enterprises are extremely important for the socio-economic development of Ukraine. Stable operation of the enterprise is possible only if the appropriate level of solvency of the enterprise. That is why the issues and problems related to ensuring solvency are given much attention in the scientific works of scientists from both foreign and domestic scientific schools. At the same time, insufficient attention is paid to long-term solvency as an important component of the system of ensuring the stable functioning and development of the enterprise in the future. The task of the study is to analyze the approaches of scientists to the interpretation of the essence of prospective solvency and its role in ensuring the stable operation of the enterprise, determining the characteristic causes of its decline in modern socio-economic development of Ukraine; development of a proposal to ensure the solvency of the enterprise in the future. In the process of research general and special methods were used: analysis and synthesis, method of comparison, generalization, statistical, etc. The article considers the essence of perspective solvency of the enterprise and its role in ensuring stable functioning of the enterprise. The factors that determine it are systematized. The conceptual model of providing perspective solvency of the enterprise for the purpose of stable functioning and development of the enterprise which provides: definition of system of the corresponding indicators of perspective solvency for their constant monitoring is offered; finding out the possible reasons, which may result in loss of prospective solvency; the sequence of implementation of the necessary measures for its restoration and provision in the future. The results of this study can be used in the process of enterprise management to determine the real state of its solvency and develop measures to ensure it in the medium and long term.

scholarly journals Analyzing the Role of Islamic Finance in Kuwait Regarding Sustainable Economic Development in COVID-19 Era

2022 ◽  
Vol 14 (2) ◽  
pp. 701
Author(s):  
Salah Alhammadi
Keyword(s):  
Economic Development ◽  
Best Practices ◽  
Management Strategies ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Banking And Finance ◽  
Sustainable Economic Development ◽  
Grounded Theory Method ◽  
The Impact

The aim of the present study was first to consider the impact of COVID-19 on Kuwait’s economy. Second, it attempted to examine the role of Islamic banking and finance in achieving socioeconomic justice and attaining best practices by securing social goods. Hence, the research assessed how Islamic banking and finance can help in reconstructing the economy based on Maqasid Al-Shari’ah (higher ethical objectives) to redevelop social, economic, and environmental welfare, especially in the COVID-19 era. A theoretical approach was adopted, namely, the grounded theory method (GTM), to explore COVID-19 related solutions for achieving sustainable economic development. The findings show that Islamic banking and finance can be employed to mitigate the impact of coronavirus and can be used as an alternative financial system to support both affected people and entrepreneurs. The paper expands on previous literature discussing the role of Islamic finance in management strategies through Islamic ethical objectives, with a particular focus on Kuwait’s post-COVID-19 era. This research can help policymakers to develop mechanisms and supporting approaches for Kuwait’s economy.

Contemporary Islamic economic studies on Maqasid Shari’ah: a systematic literature review

Humanomics ◽  
2017 ◽  
Vol 33 (3) ◽  
pp. 315-334 ◽  
Author(s):  
Akilu Aliyu Shinkafi ◽  
Nor Aini Ali
Keyword(s):  
Economic Development ◽  
Literature Review ◽  
Human Resource Development ◽  
Management Policy ◽  
Islamic Banking ◽  
Security Risk ◽  
Content Type ◽  
Banking And Finance ◽  
The Subject ◽  
New Research

Purpose The purpose of this paper is to come-up with a systematic exertion on Maqasid Shari’ah in Islamic economics, banking and finance, with a clear focus on forming an appropriate and novel framework that identifies the effort of contemporary scholars and detects the existing gap that might possibly champion new research commitments. Design/methodology/approach A systematic approach to literature review was steered through the means propagated by the Centre for Reviews and Disseminations (DSR), but modified to the precise requirements of this review. Google Scholar was searched throughout the passage. The search criteria are confined to English documents that are within the period of 2006-2016. Articles that did not score or did not convince that the subject of Maqasid Shari’ah has been applied in Islamic economy, Islamic banking, Islamic finance, Islamic financing products and economic development are excluded. Appropriate search keys are used to gather better results. Findings The findings inform that contemporary scholars show a robust commitment to the themes of the result during the stated period. The outcome reveals that contemporary scholars designate more interest and attention on Islamic banking and expose their potential specialty in the expanse than other themes. The study further highlighted the gap of some significant areas that are either outside the coverage of the reviewed documents or require more attention from contemporary scholars, for instance, wealth formation and management, wealth consumption, socioeconomic security, risk management, corporate governance, management policy, human resource development, prohibition of Riba, profit and loss sharing (PLS), etc. Research limitations/implications The paper is limited to contemporary aspects of Islamic economics, banking, finance and economic development that have a link with the subject of Maqasid Shari’ah. Practical implications A review of these scholarly reported documents has the potential to draw attention toward filling the existing gap that will likely result in salvation of current issues on the subject of Maqasid Shari’ah that has a direct association with Islamic economy, banking and finance. Originality/value The paper is original in its nature considering the fact that it is assumed as the maiden attempt of its kind in the field. It is a treasure to all those who may cherish and find it relevant in their progressive and rounded convention or application on the matter.

The possible inclusion of legal provisions in Islamic banking and finance

2018 ◽  
Vol 60 (2) ◽  
pp. 662-680 ◽  
Author(s):  
Carino Modan ◽  
Rusni Hassan
Keyword(s):  
Task Force ◽  
Regulatory Framework ◽  
Lessons Learned ◽  
Islamic Banking ◽  
Investment Funds ◽  
Content Type ◽  
Banking And Finance ◽  
Legal Provisions ◽  
Definition Of ◽  
Practical Implications

Purpose This paper aims to thoroughly examine the extent to which the current legal and regulatory framework is inclusive towards Islamic banking and finance (IBF) practices in the attempts to introduce IBF as a significant component in the Mozambique’s financial system. This is achieved by providing a critical review on the Mozambican current legal and regulatory framework including the court and arbitration system, as well as the country’s financial institutions law and regulations. Design/methodology/approach The methodology used in this study is the qualitative approach. The analysis made is based on descriptive and analytical approach whereby the study examined and critically analysed the banking regulations in Mozambique with the purpose of finding the legal gap in the existing legal and regulatory framework that allows the introduction of IBF in the country. Findings This study finds that whilst some legal provisions in the current legal and regulatory framework are conflicting with the Sharï’ah principles such as the definition of loans and the concept of interest, there is also a certain number of enabling features that can be immediately explored, including deposits (with no interest), leasing operations, investment funds or venture capital. Research limitations/implications At present, to the best of the authors’ knowledge, this is the first attempt ever made to assess the compatibility of the existing Mozambican commercial laws with the Islamic principles hence identifying the challenges that might arise due to the implementation of IBF practices in Mozambique. Practical implications This paper has several practical implications in the sense that it helps the financial market authorities in Mozambique to be able to foresee possible inclusion of provisions on Islamic transactions in the country’s existing financial regulations. Social implications The contributions of this paper lie in the valuable recommendations made on the insertion of Islamic principles in the current regulatory framework as well as assisting in overcoming some of the conflicting aspects in medium to long term. Mozambique should explore and benefit from the experience and lessons learned by the neighbouring countries that have successfully adopted the IBF practice. It is recommended that the Central Bank should establish a “task force team”, comprising of multi-skilled professionals and experts in Islamic finance from various internal areas ranging from licensing to supervision together with Sharï’ah scholars and representatives from the Muslim Community, to study the required process for adoption of IBF in the country. Originality/value There is no other study on IBF in Mozambique, particularly on legal and regulatory aspects.

Law and Development in the Islamic World: New Possibilities

2011 ◽  
Vol 4 (2) ◽  
Author(s):  
Salim Farrar
Keyword(s):  
Economic Development ◽  
Muslim World ◽  
Islamic Banking ◽  
Law And Development ◽  
Islamic World ◽  
Banking And Finance

This paper provides a brief discussion of law and development from Islamic perspectives and looks to the role of Islamic banking and finance as a means of alleviating poverty and promoting economic development in the Muslim world.

Islamic banking and finance: potential approach for economic sustainability in China

2019 ◽  
Vol 11 (6) ◽  
pp. 1725-1741
Author(s):  
Md Nazirul Islam Sarker ◽  
Most Nilufa Khatun ◽  
GM Monirul Alam
Keyword(s):  
Economic Development ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Economic Sustainability ◽  
Muslim Country ◽  
Content Type ◽  
Banking And Finance ◽  
One Belt One Road ◽  
Finance Model ◽  
Challenges And Opportunities

Purpose The purpose of this paper is to explore the unique aspects of Islamic finance and its role in economic development. It also explores the suitability of Islamic finance in China. Design/methodology/approach The paper explores the potential of Islamic banking and finance for economic sustainability in China. This study adopts the content analysis approach and focuses on various aspects of finance. Moreover, a critical investigation has been done by using various indicators of a new finance system adoption by considering the economic, cultural, religious and political aspects of China. Findings The study reveals that China already tested Islamic finance on a pilot basis in Ningxia, China. China is suitably positioned to adopt Islamic finance for its economic development. It also reports that Islamic finance will be more helpful to implement One Belt One Road initiative of China, as the Gulf and Arab Islamic finance-based countries are the major partners of China. This study analyzes Islamic micro-finance literature and proposes suitable measures for adoption in China. Practical implications Despite some limitations, the findings have a large implication on Islamic financing in general. It will be helpful to researchers and practitioners to understand the Islamic finance model for implementing it in a new environment. Social implications This study analyzes the demand, rules and regulations, related challenges and potential of launching Islamic banking and finance in China. Originality/value This study analyzes the demand, rules and regulations, related challenges and potential of launching Islamic banking and finance in China. The paper fills a gap to the existing literature on Islamic finance uniqueness, challenges and opportunities from the perspective of a non-Muslim country.

scholarly journals Islamic Banking

2003 ◽  
Vol 20 (3-4) ◽  
pp. 220-223
Author(s):  
Muhammad Anwar
Keyword(s):  
Financial Intermediation ◽  
Banking System ◽  
Muslim World ◽  
Islamic Banking ◽  
Exact Nature ◽  
The West ◽  
Banking And Finance ◽  
Islamic Tradition ◽  
Successive Generations ◽  
Muslim Scholars

Islamic Banking is an outstanding example of collaboration among Muslim and non-Muslim scholars interested in integrating "Western-based literature with that developed in the Islamic tradition." Stating that Islamic banking, although widespread, remains "poorly understood" in the Muslim world and an "enigma" in the West, the authors seek to clarify many matters. The book's main themes are Christian and Islamic positions on usurylriba' (chapter 8); the foundations (chapters 2 and 3), theories (chapter 5), application (chapters 5, 6, 7, and 9), and progress (chapters I and 9) of Islamic banking; and an analysis of Islamic banking in light of current theories of financial intermediation (chapter 4) and corporate gov­ernance (chapter 7). The book highlights Islamic and Christian commonalities on issues pertinent to banking and finance. While stating that Christianity, Hinduism, Judaism, and Islam prohibit usury, "Islam is the only major religion which maintains a prohibition on usury" due to its prominence in the Qur'an. The issue of riba' is perplexing, for despite warnings of severe consequences to those who engage in it, the Qur'an is silent on its exact nature. Unfortunately, successive generations of scholars have so confused matters that no one can say exactly what riba' is. For example, a majority of scholars regarded bank interest as riba' and, therefore, made the need for an interest-free Islamic banking system inevitable, whereas 21 jurists at Egypt's al-Azhar recently proclaimed a ruling that legit­imizes interest ...

Financial Imbalance, Extravagance, and Waste (Isrāf, Tabdhīr)

2015 ◽  
Author(s):  
Mohammad Hashim Kamali
Keyword(s):  
Financial Crises ◽  
Financial Stability ◽  
Debt Crisis ◽  
Islamic Banking ◽  
Real Economy ◽  
Subprime Mortgage ◽  
Banking And Finance ◽  
The Us ◽  
The World ◽  
Financial Transactions

This chapter reviews scriptural evidence in the Islamic sources against greed, waste, usury, hoarding, and profiteering. It also expounds the Shari’ah rules pertaining to ownership, financial transactions, and business relations that seek to keep trading and finance in touch with the real economy and the people’s needs. Then follows an examination of the recurrent financial crises, the currency turmoil, the US subprime mortgage, the Eurozone debt crisis, and extensive fraudulent irregularities by some of the world’s leading banks. The chapter advances an argument that the in-built restraints in Islamic banking and finance can contribute to financial stability and health of the world economy.

scholarly journals THE STOCK EXCHANGE, THE STATE AND ECONOMIC DEVELOPMENT IN MEXICO, 1932-1976

2015 ◽  
Vol 33 (2) ◽  
pp. 321-350
Author(s):  
Javier Moreno-Lázaro
Keyword(s):  
Economic Development ◽  
Property Rights ◽  
Latin American ◽  
Stock Exchange ◽  
State Intervention ◽  
Corporate Financing ◽  
History Of ◽  
The Government ◽  
Definition Of

ABSTRACTIn this article I examine the history of the Mexican Stock Exchange from the end of the Revolution until 1975, under the hypothesis that it did not carry out its pertinent functions in corporate financing but was rather an economic and political instrument of the government. Due to state intervention and the deficient definition of property rights, its functioning was completely anomalous except during this period. The article represents a first step in the study of the role of the stock exchange in Latin American corporatist economic models.

Sign in / Sign up

Export Citation Format

Share Document