Motives Behind the Transfer of a Bank From Conventional Banking to Islamic Banking in Pakistan

The increasing awareness on Islamic banking and finance has created a huge demand for Shari’a based or Shari’a compliant products. Banks, especially are trying to capture this huge market by either converting themselves into a full fledge Islamic banks or opening a window for the Islamic based transactions. This study highlights the reasons why traditional banks turned towards Islamic model. The phenomenon of traditional banks turning into Islamic form was reinforced by the success of these banks averting the recent world economic crises. For data collection 80 respondents were selected, a proxy of five variables were undertaken as measurement. Variables of the study were:Transfer to Islamic Banking(TIB) was taken as dependent variable whileShari’a compliance(SC), Risk and Return(RR), Customer need(CN) and Performance of Islamic banks(PI) were taken as independent variables for which adopted questionnairewas used for data collection. The result of this research is that the banks are transferring from conventional banking to Islamic banking is just because of Shari’a Compliance, performance of Islamic banks and customer need for Islamic product.

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

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.

Dakwah Strategies of Sharia Tourism: The Case of Gili Air, North Lombok

For the past few years, Lombok in particular and West Nusa Tenggara in general have not only been known as an island of thousand mosques, but also as a world tourist destination, particularly Shari’a compliance (halal) tourism. With such a new branding, respective stakeholders on the island should therefore make an effort to plan strategies for presenting the concept of halal tourism that serve and benefit both domestic and foreign tourists. Dakwah (Islamic propagation/preaching) can play an important role in strengthening local people’s faith while also balancing between religiosity and tourism. This study looks into how the halal tourism ‘brand’ can be manifested in Gili Air, one of the famous small islands of tourist destination located in the northern part of Lombok. The study reveals that the dakwah strategies for shari’a tourism in Gili Air are carried out through twofold strategies, namely da‘wah bi al-lisān and da‘wah bi al-ḥāl. The first refers to a model where the activities of propagation revolve around preaching of Islamic tenets. The latter emphasizes actualization of Islamic doctrines into daily life.

Ketegasan Regulasi Laporan Ketaatan Syarian dalam Optimalisasi Financial Technology Lembaga Keuangan Syariah

Financial Technology in the digital era becomes an opportunity as well as a challenge for Islamic banks as one of Sharia Financial Institutions. Financial Technology for the customers. However, the current role of sharia banks has not been able to shift the position of conventional banks that are more inclusive, Islamic banks that can not guarantee the true quality of sharia. Regulations on the Sharia Compliance Report are not clearly identified as significant differentiators from conventional bank practices. The Weakness of Regulation of Bank Indonesia Regulation Number 10/16 / PBI / 2008 Article 2 on the Implementation of Sharia Principles has not guaranteed the performance of the true Islamic banks. The Shari'a Compliance Report is a mirror of the Shariah Enterprise Theory which states that the purpose of accounting is to provide information covering the efforts of stakeholders in performing devotion to Allah SWT to work on the triple bottom line (profit, human, and planet) model, given financial technology and distrust to use the services of sharia banks due to the negative image of Islamic banks.