Browsing by Author Mahmoud Al-Jarhi, Mabid Ali Mohamed

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Showing results 1 to 9 of 9
  • A_comparison_of_transactions_in_conventional_and_Islamic_economies_Mabid.pdf.jpg
  • Academic Proceeding

  • A comparison of transactions in conventional and Islamic economies

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2000)

  • This paper compares the transactions costs in two economies, one conventional, the other Islamic. The conventional economy is characterized by borrowing to finance some current purchases, while the Islamic economy disallows interest-based lending and operates on the basis of universal banking that mixes commerce and commercial and investment banking. To finance current purchases, it provides customers with credit purchase agreements, which entail that the bank buy the commodities and assets from suppliers and resell them on credit to customers satisfying conditions of creditworthiness similar to those that conventional banks require for borrowers. The paper uses simple calculations to...
  • case_universal_banking_component_Islamic_banking_mabid.pdf.jpg
  • Journal Article

  • The case for universal banking as a component of Islamic banking

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2005)

  • Universal banking is one of the main components of Islamic banking. Islamic banks provide finance to enterprises through either sharing directly in the net results of their activities or financing their purchases of assets, goods and services on credit. We can therefore expect Islamic banks to hold equity in corporations and sit on their boards of directors. This paper aims to put forward the case of universal banking as a part of Islamic banking. A large amount of literature is surveyed that comes from banking theory, macroeconomic and monetary theory, as well as empirical studies about banking practices. The conclusion is that universal banking on its own is a sound practice that ca...
  • economic_theory_Islamic_finance_regulation_mabid.pdf.jpg
  • Journal Article

  • An economic theory of Islamic finance regulation

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2016)

  • We argue that regulation can improve the performance of conventional banks up to a limit, but cannot eliminate the inefficiencies resulting from the use of the conventional loan contract. Islamic finance requires complicated and costly procedures compared to conventional finance. Yet, it has significant macroeconomic benefits, which cannot be internalized by individual banks. Therefore, Islamic bankers tend to mimic conventional finance in order to cut costs and maximize short-term profits. Regulation can modify bankers' incentives in order to capture the benefits of Islamic finance.
  • item.jpg
  • Academic Proceeding

  • Enhancing corporate governance in Islamic financial institutions

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2001)

  • The paper "Enhancing corporate governance in Islamic financial institutions" presented at Islamic Research and Training Institute-AAOFI Conference on Transparency, Governance and Risk Management in Islamic Financial Institution, Beirut, Lebanon.
  • gaps_theory_practice_Islamic_economics_mabid.pdf.jpg
  • Journal Article

  • Gaps in the theory and practice of Islamic economics

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2013)

  • After a generation of non-professional writers in Islamic economics, professional economists entered the stage with an important ambition, which has been to introduce a third alternative to humanity in addition to capitalism and socialism that would answer some of the inadequacies of each. Moreover, the analysis of human (individual and collective) behavior towards scarcity under the teachings of Islam was itself worth pursuing. The intellectual effort is yet to produce significant practices of Islamic economics. The exceptions include some application of Islamic finance that raises many questions, and a few applications of zakah and awqaf. The most serious challenge of Islamic financ...
  • nature_money_modern_economy_implications_consequences_stephen_robert_mabid.pdf.jpg
  • Journal Article

  • The nature of money in modern economy - implications and consequences by Stephen Zarlenga and Robert Poteat

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2016)

  • Reforming the contemporary monetary and financial system has come under the limelight with the onset of the last international financial crisis. Zarlenga and Poteat focus on the elimination of credit money and the return of the exclusive right of issuing money to the government as a key to reforming the system. In this comment, I argue that they are right, but reform should be wider and more comprehensive. My arguments are inspired by al-Jarhi's model of an Islamic monetary system (1981).
  • remedy_banking_crises_what_chicago_islam_have_common_comment_mabid.pdf.jpg
  • Journal Article

  • Remedy for banking crises: what Chicago and Islam have in Common: a comment

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2004)

  • Repeated failure of banks led some economists to believe that the banking and financial system may be suffering from structural problems and is in need of fundamental reform. The Islamic monetary system is known to consider demand and investment deposits as two distinct contracts. Demand deposits are merely loans that are fully guaranteed by banks and must be returned on demand. Investment deposits are given to banks on a profit-and-loss sharing basis. They are clearly associated with risk-taking and have specific maturities which, in principle, are not revocable. Compared to conventional finance, this sounds like narrow banking. Garcia, Marino and Cibils (2000) find similarities betw...
  • reviving_ethics_islamic_finance_mabid.pdf.jpg
  • Journal Article

  • Reviving the ethics of Islamic finance

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2010)

  • When it comes to definitions of ethics, and business ethics in particular, we have relied in this paper on a quick survey of the literature. We also referred to other writings to explain how interest-based lending escaped religions morality in the west. After providing an Islamic perspective of ethics and business ethics, the article directs itself to the moral responsibilities of system participants. Naturally there is a great deal of soul searching to do and there are tough questions that must be answered by everyone. In this regard, more questions than answers are provided. As a result, the Islamic finance system is found to have deviated from its own ethics and must put some effor...
  • Towards_an_economic_theory_of_Islamic_finance_regulation_mabid.pdf.jpg
  • Journal Article

  • Towards an economic theory of Islamic finance regulation

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2014)

  • Islamic finance has several comparative advantages over conventional finance. Since they are related to efficiency, stability and other macroeconomic benefits, they cannot be easily internalized by Islamic bankers. Islamic bankers have no incentive to stick to the Islamic finance paradigm and instead tend to mimic conventional finance. Regulation is therefore required to modify their behavior in order to allow the Islamic finance industry to enjoy its advantages. This paper attempts modify the economic theory of bank regulations towards that aim.

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Browsing by Author Mahmoud Al-Jarhi, Mabid Ali Mohamed

Jump to: 0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
or enter first few letters:  
Showing results 1 to 9 of 9
  • A_comparison_of_transactions_in_conventional_and_Islamic_economies_Mabid.pdf.jpg
  • Academic Proceeding

  • A comparison of transactions in conventional and Islamic economies

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2000)

  • This paper compares the transactions costs in two economies, one conventional, the other Islamic. The conventional economy is characterized by borrowing to finance some current purchases, while the Islamic economy disallows interest-based lending and operates on the basis of universal banking that mixes commerce and commercial and investment banking. To finance current purchases, it provides customers with credit purchase agreements, which entail that the bank buy the commodities and assets from suppliers and resell them on credit to customers satisfying conditions of creditworthiness similar to those that conventional banks require for borrowers. The paper uses simple calculations to...
  • case_universal_banking_component_Islamic_banking_mabid.pdf.jpg
  • Journal Article

  • The case for universal banking as a component of Islamic banking

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2005)

  • Universal banking is one of the main components of Islamic banking. Islamic banks provide finance to enterprises through either sharing directly in the net results of their activities or financing their purchases of assets, goods and services on credit. We can therefore expect Islamic banks to hold equity in corporations and sit on their boards of directors. This paper aims to put forward the case of universal banking as a part of Islamic banking. A large amount of literature is surveyed that comes from banking theory, macroeconomic and monetary theory, as well as empirical studies about banking practices. The conclusion is that universal banking on its own is a sound practice that ca...
  • economic_theory_Islamic_finance_regulation_mabid.pdf.jpg
  • Journal Article

  • An economic theory of Islamic finance regulation

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2016)

  • We argue that regulation can improve the performance of conventional banks up to a limit, but cannot eliminate the inefficiencies resulting from the use of the conventional loan contract. Islamic finance requires complicated and costly procedures compared to conventional finance. Yet, it has significant macroeconomic benefits, which cannot be internalized by individual banks. Therefore, Islamic bankers tend to mimic conventional finance in order to cut costs and maximize short-term profits. Regulation can modify bankers' incentives in order to capture the benefits of Islamic finance.
  • item.jpg
  • Academic Proceeding

  • Enhancing corporate governance in Islamic financial institutions

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2001)

  • The paper "Enhancing corporate governance in Islamic financial institutions" presented at Islamic Research and Training Institute-AAOFI Conference on Transparency, Governance and Risk Management in Islamic Financial Institution, Beirut, Lebanon.
  • gaps_theory_practice_Islamic_economics_mabid.pdf.jpg
  • Journal Article

  • Gaps in the theory and practice of Islamic economics

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2013)

  • After a generation of non-professional writers in Islamic economics, professional economists entered the stage with an important ambition, which has been to introduce a third alternative to humanity in addition to capitalism and socialism that would answer some of the inadequacies of each. Moreover, the analysis of human (individual and collective) behavior towards scarcity under the teachings of Islam was itself worth pursuing. The intellectual effort is yet to produce significant practices of Islamic economics. The exceptions include some application of Islamic finance that raises many questions, and a few applications of zakah and awqaf. The most serious challenge of Islamic financ...
  • nature_money_modern_economy_implications_consequences_stephen_robert_mabid.pdf.jpg
  • Journal Article

  • The nature of money in modern economy - implications and consequences by Stephen Zarlenga and Robert Poteat

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2016)

  • Reforming the contemporary monetary and financial system has come under the limelight with the onset of the last international financial crisis. Zarlenga and Poteat focus on the elimination of credit money and the return of the exclusive right of issuing money to the government as a key to reforming the system. In this comment, I argue that they are right, but reform should be wider and more comprehensive. My arguments are inspired by al-Jarhi's model of an Islamic monetary system (1981).
  • remedy_banking_crises_what_chicago_islam_have_common_comment_mabid.pdf.jpg
  • Journal Article

  • Remedy for banking crises: what Chicago and Islam have in Common: a comment

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2004)

  • Repeated failure of banks led some economists to believe that the banking and financial system may be suffering from structural problems and is in need of fundamental reform. The Islamic monetary system is known to consider demand and investment deposits as two distinct contracts. Demand deposits are merely loans that are fully guaranteed by banks and must be returned on demand. Investment deposits are given to banks on a profit-and-loss sharing basis. They are clearly associated with risk-taking and have specific maturities which, in principle, are not revocable. Compared to conventional finance, this sounds like narrow banking. Garcia, Marino and Cibils (2000) find similarities betw...
  • reviving_ethics_islamic_finance_mabid.pdf.jpg
  • Journal Article

  • Reviving the ethics of Islamic finance

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2010)

  • When it comes to definitions of ethics, and business ethics in particular, we have relied in this paper on a quick survey of the literature. We also referred to other writings to explain how interest-based lending escaped religions morality in the west. After providing an Islamic perspective of ethics and business ethics, the article directs itself to the moral responsibilities of system participants. Naturally there is a great deal of soul searching to do and there are tough questions that must be answered by everyone. In this regard, more questions than answers are provided. As a result, the Islamic finance system is found to have deviated from its own ethics and must put some effor...
  • Towards_an_economic_theory_of_Islamic_finance_regulation_mabid.pdf.jpg
  • Journal Article

  • Towards an economic theory of Islamic finance regulation

    • Authors: Mahmoud Al-Jarhi, Mabid Ali Mohamed (2014)

  • Islamic finance has several comparative advantages over conventional finance. Since they are related to efficiency, stability and other macroeconomic benefits, they cannot be easily internalized by Islamic bankers. Islamic bankers have no incentive to stick to the Islamic finance paradigm and instead tend to mimic conventional finance. Regulation is therefore required to modify their behavior in order to allow the Islamic finance industry to enjoy its advantages. This paper attempts modify the economic theory of bank regulations towards that aim.