Journal Article

The effects of interest rate on Islamic bank financing instruments: cross-country evidence from dual-banking systems

Seho, Mirzet; Bacha, Obiyathulla Ismath; Smolo, Edib (2020)

In theory, the cornerstones of Islamic finance are interest avoidance and risk-sharing. In practice, however, Islamic banks seem to be lacking both, particularly the latter. We investigate the interest rate impact on Islamic banks' three most-widely used types of financing instruments - i.e. sale-based,...

Newsletter & Bulletin

High time for Islamic banks to show they are indeed value-based intermediaries

Shamsudheen, Shinaj Valangattil; Salim, Kinan; Abdul Hamid, Baharom; Mahomed, Ziyaad; Abu Bakar, Noor Haini Akmal; Hassan, Wiaam (2020)

The novel COVID-19 pandemic has caused an unprecedented human crisis around the globe. The necessary actions implemented to contain the virus have sparked both economic and social downturn. It shows the fragility and unpreparedness of the economy to face such a pandemic. Significant weakening of economic...

Industry Article

Pitfalls of the dual-banking system: the unbreakable future of Islamic banking

Rosly, Saiful Azhar (2020)

Islamic banking institutions are established to provide an alternative financing arrangement that uses trading (al-bay) as opposed to usury in their business. The banking modality however is still based on the deposit-taking function where deposit funds are used by banks to make loans. Deposit funds...

Industry Article

Gender diversity in corporate boards of Malaysia - does it really matter?

Aljunid, Syed Abdul Hamid (2020)

The journey of gender inclusion in Malaysia began in 2004 when the government pushed for 30% of decision making positions in the public sector to be filled by women. This was achieved in 2010. In 2011 the Securities Commission of Malaysia (SC) in its Corporate Governance Blueprint encouraged listed companies...