LA BANQUE ISLAMIQUE ; NATURE SPECIFIQUE ET EVOLUTION / THE ISLAMIC BANK; SPECIFIC NATURE AND EVOLUTION

La finance islamique est désormais une composante essentielle de la finance mondiale. Elle connait une croissance vertigineuse dans plusieurs pays musulmans à l’instar des pays de Golfe et de l’Asie Sud – Est. Elle a fait preuve d’innovation et a pu s’implanter dans plusieurs pays où elle cohabite avec la finance conventionnelle La finance participative, en se basant sur les percepts islamiques, peut présenter des opportunités qu’elle offrirait par sa contribution au financement des secteurs prioritaires. La finance islamique est une finance éthique qui s’inspire sur des valeurs morales et des enseignements de la Charia. Elle repose essentiellement sur l’interdiction des taux d’intérêt dans les opérations d’endettement (plus connu sous le nom de « riba »), et sur le principe de partage des pertes et des profits ; ce qui constitue les éléments distinctifs à l’égard de la finance conventionnelle. Islamic finance is now an essential component of the global finance. It is experiencing dizzying growth in several Muslim countries such as the Gulf countries and Southeast Asia. It has demonstrated innovation and has been able to establish itself in several countries where it coexists with conventional finance Crowdfunding, based on Islamic precepts, can present opportunities that it would offer through its contribution to funding priority sectors. Islamic finance is ethical finance that draws on moral values and the teachings of Sharia. It is essentially based on the prohibition of interest rates in debt transactions (better known as "riba"), and on the principle of profit and loss sharing; which constitutes the distinguishing elements with regard to conventional finance. JEL: G21, G29 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0798/a.php" alt="Hit counter" /></p>

Exploring Potentials of Philanthropic Islamic Financial Instruments in Providing Healthcare Services for Underprivileged

Philanthropic financial instruments utilize donated funds or assets in order to deliver social services for society. NGOs may not be able to operate the social services efficiently in the absence of such funds. Lately, there are plenty of organizations that have taken initiatives to render social services for targeted populations in order to curb social problems such as poverty, hunger, crimes, etc., through the use of some forms of philanthropic instruments including Islamic social finance, ethical finance, and others. Today, however, philanthropic financial instruments such as socially responsible investment (SRI), social impact bonds (SIB), and even Waqf are issued by financial institutions rather than socially driven institutions. As such, they have been treated as commercial financial instruments rather than socially driven mechanisms. This paper aims to elucidate the potentials of selected modern financial philanthropic instruments that deal with the healthcare sector. The strengths and weaknesses of the selected instruments will be assessed to explore their potentials in serving the healthcare services sector particularly for the underprivileged. The healthcare sector is highlighted as the focus of this study due to its relevance to the present challenge of the Covid-19 pandemic. This is an exploratory study that adopts the qualitative method whereby a rigorous review of the relevant literature is conducted to examine the potential that philanthropic Islamic financial instruments can offer in providing healthcare services to the underprivileged. The findings elaborate on three important models of philanthropic instruments, namely social impact bonds (SIB), development impact bonds (DIB), and takaful-waqf models. It was also found that these philanthropic instruments have varied strengths and weaknesses that require rectification in the future.

EVOLVING MONETARY ECONOMICS IN ISLAMIC PERSPECTIVE

The challenges facing the Islamic banking and finance industry include, inter alia, resolving the issue of ‘form over substance’, adopting value-based social and ethical finance, and reinforcing public confidence that its business and services conform to the principles of Shari’ah in both letter and spirit. These challenges can be faced only if Islamic finance is based on the money and monetary perspective of Islamic economics. An important aspect for discussion in this context is the issue of money creation. This paper is based on an analysis of the literature on conventional and Islamic economics and Islamic finance. It comprises observational and narrative research mainly because monetary policy from an Islamic perspective has not been implemented in any jurisdiction in the modern world. Its objective is thus to suggest how monetary policy might evolve from the perspective of Islamic law of contracts. It discusses an economic model in which a new theory of monetary economics could become a basis for evolving Islamic finance in its value-based perspective. It also discusses monetary economics and monetary policy from an Islamic perspective in the context of contemporary Muslim economies. The Islamic financial system must be based on the Islamic system of money, monetary economics and exchange principles. Hence, economists and policymakers may first focus on evolving monetary economics and policy from an Islamic perspective, to serve as a basis for structural reforms.

Comparative Risk Analysis by Var: An Empirical Application to Ethical Market Indices

In recent years, companies' actions towards factors of production have multiplied. The human dimension is increasingly present in decisions and companies feel socially responsible. The sustainability of companies necessarily requires limiting the negative environmental effects because of these production activities. Ethical finance in general, whether Islamic or not, is a growing demand on the part of consumers and states. The aim of this paper is to assess the risk of two ethically responsible indices such as S&P500 Shariah index and S&P500 Environment and Socially Responsible index. In this paper, we will conduct a comparative study of market risk on two ethically responsible indices: the Islamic Index of the Shariah (S&P500 Shariah index) and the S&P500 Environment and Socially Responsible index during the period from 30/09/2010 to 21/09/2018. The evolution of the market will be represented by the general index of the S&P500. To do this, we use different approaches to value at risk such as VaR parametric approach, VaR non-parametric approach and the Theory of Extreme Values approach. Our results show that, on the one hand, the S&P500 Environment and Socially Responsible index is less risky than the S&P500 Shariah index and the S&P500 index. On the other hand, the S&P500 Shariah index is at low risk when yields are extreme. We conclude that the S&P500 Environment and Socially Responsible index is less risky than the Shariah S&P500 Index when you consider that yields are moving under normal market conditions.

Comparative risk analysis by VaR: an empirical application to ethical market indices

In recent years, companies' actions towards factors of production have multiplied. The human dimension is increasingly present in decisions and companies feel socially responsible. The sustainability of companies necessarily requires limiting the negative environmental effects because of these production activities. Ethical finance in general, whether Islamic or not, is a growing demand on the part of consumers and states. The aim of this paper is to assess the risk of two ethically responsible indices such as S&P500 Shariah index and S&P500 Environment and Socially Responsible index. In this paper, we will conduct a comparative study of market risk on two ethically responsible indices: the Islamic Index of the Shariah (S&P500 Shariah index) and the S&P500 Environment and Socially Responsible index during the period from 30/09/2010 to 21/09/2018. The evolution of the market will be represented by the general index of the S&P500. To do this, we use different approaches to value at risk such as VaR parametric approach, VaR non-parametric approach and the Theory of Extreme Values approach. Our results show that, on the one hand, the S&P500 Environment and Socially Responsible index is less risky than the S&P500 Shariah index and the S&P500 index. On the other hand, the S&P500 Shariah index is at low risk when yields are extreme. We conclude that the S&P500 Environment and Socially Responsible index is less risky than the Shariah S&P500 Index when you consider that yields are moving under normal market conditions.

Qitmeer Network Enhances Zakat Tracebility In Nigeria

Zakat is mandatory annual alms given from property which zakat is due from it when it reaches nisab. There are challenges facing Zakat management in Nigeria which includes unawareness of Zakat calculation, lack of transparency in collection and distribution of Zakat, lack of Zakat payers’ confidence on their donation and lack of channeling Zakat to the eight groups of people on whom Zakat should be given. The challenges facing by Zakat management led to the failure of Zakat administrative to eradicate poverty and to uplift social welfare in the community. Qitmeer network is the first public chain serving the ecosystem of ethical finance, socially responsible investment and Islamic Finance for enhancing financial inclusion. Qitmeer network support Zakat management to gain the confidence of the public by ensuring transparency and disclosure of all Zakat activities in term of collection and distribution of Zakat. The traceability feature in Qitmeer network ensures that Zakat payers could select what project they would like to use their Zakat for, such as water irrigation, sanitation, poverty eradication and education. The objective of this paper is to analyze how Qitmeer network enhance Zakat traceability in Nigeria. Descriptive and analytical approach is exploited in this paper to analyze secondary and primary data on how Qitmeer Network enhance Zakat traceability in Nigeria. Finding in this paper reveals that the key need of transparency in Zakat management in Nigeria is to enhance the confidence of general public to donate Zakat through verified channels instead of giving it to individual who might not eligible to receive Zakat. Qitmeer network ensures Zakat data integrity through out all Zakat activities using mathematical model which can not be altered. Findings also shows that Qitmeer network enhance Zakat traceability and transparency in collection and distribution of zakat in Nigeria to fulfil purpose of Zakat in eradicating poverty and uplifting social welfares of people. Zakat

Grameen Microcredit as an Archetype of Islamic and Ethical Micro Financing Experiences: Respondents’ Perceptions on its Viability in Nigeria

Making microcredit facilities accessible to the poorest members of society have attracted well support from neoliberals partly due to its prominence on individual responsibility and those on the left of the political spectrum to a certain extent for the reason of its potential to empower women. Following this premise, the paper focused on the justification of ethical micro financing in Nigeria with consideration of experiences worldwide that Islamic micro financing is one of the fastest-growing segments in both the domestic and international financial system. This study also intends to inspire the espousal of alternative ethical finance to tie together its benefits in Nigeria. A structured questionnaire was distributed to the Bauchi metropolis; thereby, a convenience sampling technique was used. The data collected were analyzed using frequency tables, percentages, and simple tabulation. This study believed that poverty is not created by poor people. It is created by the institutions and policies which surround them. Loans offer people the chance to take initiatives in business and agriculture to make earnings that enable them to pay off debt. This paper largely recommended that the acceptance of Islamic and ethical microfinancing experiences are the foremost component of the struggle against poverty and can be used to ease the discouraging impact of the high unemployment rate among the youth in Nigeria and other Muslim countries.

Design of Strategies for the Implementation and Management of a Complementary Monetary System Using the SWOT-AHP Methodology

The objective of this research is to contribute to the scientific debate on “complementary monetary systems” (CMSs), what strategies may be the best for allowing the implementation of a CMS in a territory and that optimise the potential that it seems to have to strengthen processes of sustainable local development and urban resilience. For this, the Strengths, Weaknesses, Opportunities and Threats-Analytic Hierarchy Process methodology (SWOT-AHP) has been used, which has allowed us to identify four strategies: (1) build a social, economic and political consensus, (2) create a community observatory for “complementary social monetary systems” (CSMSs), (3) define communication tools for raising awareness and education in ethical finance and (4) promote the alignment of the CSMS with sustainable local development strategies. These strategies have been formulated so that that they can be implemented by any entity, public or private, and for any of the types of CMS that may be part of a CSMS.

The Islamic Finance Industry and Grand Potential for Growth in the Contemporary Economy: Arousal for Dual Finances in Nigeria

The paper focuses on evaluating and comparing the justification of Islamic and conventional modes of finance in Nigeria. This study also intends to inspire the adoption of alternative ethical finance to harness its benefits in Nigeria. The acclaimed one hundred billion Sukuk bond launched by the Federal Government of Nigeria is just one of the critical plus Nigeria as a nation can benefit from Islamic finance. A structured questionnaire was distributed to the respondents in the Bauchi metropolis; thereby, the convenience sampling technique was used. Results were analyzed with Chisquare employed to test the hypothesis at a confidence level of 95% (0.05), that is, confidence and significance level, respectively. This study believed that Nigerians are quick to concern about their state of the economy. Therefore it’s suggested that there is an urgent need for everyone including the students of business and finance, the product developers for the emerging industry and banking personnel to have proper knowledge of the principles of Islamic finance vis-a-vis conventional finance about the essential requirements of different modes of finance and how they can be applied to various operations and services of banks and financial institutions in the dual economy. This paper further recommended that, when Islamic finance is properly instituted and practice as alternative ethical finance in the country, and more people apply for it, Nigeria economy would stand to be rejuvenated, boosted and made to be robust, embracing the Islamic financial system will present the best way the country’s economy can witness rapid improvement.

Risk of Ethical Financial Investments of Firms

Ethical tangible, intagible and financial investments are realized in the framework of ethical finance management of firms. Ethical financial in-vestments projects by kinds are accompanied by different kinds of risk. Risk measurement process of these investments includes: classification of risk, classification of risk factors and determination of risk size using different methods.