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Showing results 655 to 674 of 1687
  • hilah_in_the_Islamic_banking_instruments_in_Malaysia_aishath.PDF.jpg
  • Journal Article


  • Authors: Muneeza, Aishath; Nik Yusuf, Nik Nurul Atiqah; Mohd Iqbal, Norariefah; Noor Mohamad, Juyda (2011)

  • The main focus of this paper is to identify the hilah committed in the Islamic banking and finance instruments in Malaysia with reference to other jurisdictions and analyse the complexity in ascertaining the legal status of such practice either in equity or debt based financing when its practice associates with the interest of the people and a need to fulfill the maqasid al-Shariah. At the end of the paper, the authors would attempt to answer the question whether there is a need to uniform the Islamic banking instruments in all the jurisdictions of the world to facilitate cross-border transactions.

  • Historical_development_of_Islamic_venture_capital_Said.pdf.jpg
  • Journal Article


  • Authors: Rusni Hassan; Sa'id Adekunle Mikail; Muhamad Arifin (2011)

  • Venture capital is commonly defined as medium to long-term equity investment provided for unlisted companies to finance their start up, expansion, survival and change of ownership. The origin of which was traced back to mudharabah; which is commonly translated to Islamic limited partnership. The application of venture capital seems to be abandoned in Muslim world for long, while Western communities get steady development of it. Since the inception of Islamic banks for almost two decades, Islamic banks are also turning a blind eye to venture capital. In spite that venture capital is akin to Islamic bank's principle of profit and loss sharing. The first Islamic bank which was introduced...

  • history of islamic public finance.pdf.jpg
  • Chapter in Book


  • Authors: Cizakca, Murat (2012)

  • Gharar is usually examined in the literature from the perspective of modern Islamic private finance. In this article, I will focus on public finance and try to explain how this important concept found and application in history. It is a concept that has a long history, and was embedded in Islamic jurist work over centuries of commnets and interpretations.

  • honey_at_the_tip_of_the_tongue_corruption_aishath.PDF.jpg
  • Journal Article


  • Authors: Ismail Wisham; Aishath Muneeza (2011)

  • Corruption is a cancer spoiling the society. It inhibits the developed and developing nations to rise above and turn into developed nations. The developing countries are struggling to tackle the issue of corruption. This indeed affects the development of projects and impacts the grassroots by depriving the marginalised of essential benefits. The objective of this paper is to provide a descriptive analysis on international corruption, curbing legislations existing in the world today. It is argued here that corruption needs to be curbed at all cost. This article also proposes suggestions on how this issue may be resolved. The authors contend that a single set of legislation against corr...

  • hotel_investment_financing_call_shariah_consideration_new_methodology_assessment_screening_ahcene.pdf.jpg
  • Journal Article


  • Authors: Lahsasna, Ahcene (2015)

  • It investigates the nature of the hotel business from the Islamic law perspective and its importance in the Malaysian economy. It argues that exclusion of hotel business from Islamic investment and financing activities through Shari'ah screening methodology may be inappropriate. Hence, it recommends that the Shari'ah Advisory Council (SAC) of Securities Commission Malaysia reconsider the assessment and screening process for hotel business in the light of arguments put forward in the research in favour of its Shari'ah compliance.

  • house_financing_contracts_used_Islamic_banks_finished_properties_Malaysia_aishath et al.pdf.jpg
  • Journal Article


  • Authors: Aishath Muneeza; Muhammad Fahmi Fauzi; Muhammad Faisal Mat Nor; Mohamed Abideen; Muhammed Maher Ajroudi (2020)

  • The purpose of this paper is to find out the existing practices of the Islamic banks in providing financing to the customers who have a requirement to purchase a finished property and to examine the existing products used by the Islamic banks in this regard by providing an insight into the modus operandi of these products. In doing this, attempt is made to find out the most famous product offered by the Islamic banks in this regard and to find out whether in reality, Malaysian Islamic banking industry has moved away from Bai Bithaman Ajil (BBA) or not. This is a qualitative research, largely library-based, and it will consist of secondary sources such as books, journals, articles and ...

  • house_prices_bank_credits_Malaysia_aggregate_disaggregate_analysis_mansor_siong.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim; Siong Hook Law (2014)

  • The paper investigates the long run behavior of house prices and their dynamic interactions with bank credits, real output and interest rate for the case of Malaysia. Apart from the aggregate house prices, the analysis also covers various house price sub-indices, namely, the terraced house price index, the semi-detached house price index, the detached house price index and the high-rise price index. From the aggregate perspective, we note the presence of a long run relation among the variables. Moreover, the findings suggest the long run causality that runs from the included variables to both the aggregate house prices and bank credits. Dynamic interactions between house prices and ba...

  • house_price‐stock_price_relations_thailand_empirical_analysis_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2010)

  • The purpose of this paper is to empirically evaluate the wealth and credit-price effects in the relations between housing prices and stock prices for Thailand using quarterly data from 1995 to 2006. The analysis relies on a four-variable vector autoregression (VAR) framework consisting of house prices, stock prices, real output and consumer prices. Granger causality tests, impulse-response functions and variance decompositions simulated from the estimated VAR systems are adopted as bases for inferences. The results obtained from Granger causality tests, impulse response functions and variance decompositions all suggest a unidirectional causality that runs from stock prices to house pr...

  • housing_development_finance_corporation_Maldives_aishath.pdf.jpg
  • Industry Article


  • Authors: Aishath Muneeza (2016)

  • The Housing Development Finance Corporation (HDFC) of the Maldives is getting ready to issue their second sukuk in the last quarter of this year. The HDFC sukuk will be based on the mudarabah structure which was used in the country's debut listed corporate sukuk issued in 2013. In the Maldives, due to the absence of laws to create SPVs and due to the absence of trust law, inter alia, the Sukuk issued in the jurisdiction have some challenges in aligning the legal structure of sukuk to international practices adopted in other jurisdictions. Notwithstanding such limitations, the country successfully issued its debut corporate sukuk in 2013.

  • How_Islamic_equities_respond_monetary_actions_Anwer.pdf.jpg
  • Journal Article


  • Authors: Zaheer Anwer; Choudhary Wajahat Naeem Azmi; Shamsher Mohamad Ramadili Mohd (2019)

  • The purpose of this paper is to appraise the effectiveness of monetary policy actions in variant market conditions for Islamic stocks. These stocks offer ground for a natural experiment as they have restrictions on the line of business and their distinguished capital structure does not allow them to combat the liquidity crisis through the use of leverage. The paper uses the quantile regression approach for a multi-country sample of Islamic stock indices to assess the impact of domestic as well as US expansionary monetary policy on stock returns of Islamic indices at various locations of distribution of returns. It is found that, at lower return levels, an expansionary monetary policy ...

  • how_microfinance_prosper_analysis_environmental_social_governance_contex....pdf.jpg
  • Journal Article


  • Authors: Tauhidul Islam Tanin; Mohammad Ashraful Mobin; Ng Adam Boon Ka; Ginanjar Dewandaru; Kinan Salim; Malik Abdulrahman Nkoba; Ahmad Lutfi Abdul Razak (2019)

  • The spotlight of this study is to examine whether environmental, social, and governance performance affects the financial performance of microfinance institutions (MFIs). The topic has been of much interest to researchers and policymakers due to increased awareness among stakeholders on the adverse social and environmental impacts of business actions. Using a dataset covering 5 years for 62 MFIs across 34 countries, we find that environmental and governance performance has no impact on the financial performance of MFIs. As for the social-financial performance nexus, our results reveal a positive relationship using the depth of outreach as proxy of social performance. However, when wom...

  • how expansive are frontier_rodney.pdf.jpg
  • Chapter in Book


  • Authors: Wilson, Rodney (2009)

  • Islamic capital market products have developed enormously in recent years, with seven major types of sukuk and issuance in four currencies and by ten countries. Much has been achieved since 2000 and many lessons have been learnt. The industry has not suffered the types of setbacks experienced by conventional asset-backed securities, many of which, following the subprime debacle, are now worthless. Yet those involves in sukuk issuance cannot afford to be complacement, as there are many unresolved issues. The aim here is to consider these issues and assess where the industry is going

  • how_far_maldives_progressed_achieving_islamic_capital_market_Aishath.PDF.jpg
  • Industry Article


  • Authors: Aishath Muneeza (2018)

  • The Maldives Capital Market Strategic Plan 2015-19 (the Plan) has 10 programs out of which Program 4 specifically deals with developing Islamic capital market products. The strategic priority for Program 4 is broadening access to finance and investment opportunities. The overview of Program 4 states that the Plan aims to promote more investable products to investors of various preferences. Equity, debt, investment funds, private equity and venture capital funds are to be introduced in the form of conventional products and/or Shariah compliant products. As part of the development activities of the authorities, developing Shariah compliant products will be a high priority during the nex...

  • how_inflationary_oil_price_hikes_disaggregated _bok_Thailand_using_symmetric_asymmetric_cointegration_models_mansor_kanokwan.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim; Kanokwan Chancharoenchai (2014)

  • The present paper analyzes the inflationary effects of oil prices at the aggregate and disaggregated levels for Thailand using symmetric and asymmetric cointegration and error-correction modeling approaches. The cointegration test results suggest the presence of long-run relations between oil prices and the following price indices: aggregate consumer price index, non-food and beverage price index, housing and furnishing price index, energy price index, non-raw food and energy price index and transportation and communication price index. Meanwhile, food and beverage price index and raw food price index are not cointegrated with the oil prices. From the dynamic analyses, we uncover evid...

  • how_islamic_are_islamic_banks_non-linear_assessment_islamic_rate_conventional_rate_relations_mansoribrahim.pdf.jpg
  • Journal Article


  • Authors: Raditya Sukmana; Mansor H. Ibrahim (2017)

  • In this paper, we perform a non-linear assessment of Islamic rate - conventional rate relations for the case of Malaysia. Using monthly data covering the period January 1999 to November 2016, we find strong evidence supporting non-linear reactions of the Islamic investment rates to conventional rates in the long run and/or short-run for all matched maturities. More precisely, the Islamic investment rates exhibit faster upward movement (slower downward movement) in responses to conventional deposit rate increases (decreases). The asymmetric pricing behaviour of Islamic banks however tends to weaken as maturity lengthens. Accordingly, we infer that Islamic banks do not rigidly peg their...

  • how_Sudan_attracted_retail_investors_through_sukuk_shehama_magda.pdf.jpg
  • Industry Article


  • Authors: Ismail Abdel Mohsin, Magda (2019)

  • The issuance of sukuk in Sudan started since 1998 as an alternative Islamic instrument for liquidity management. In 1998 the Central Bank of Sudan established the Sudan Financial Services Company SFSC as the SPV with the aim to manage the issuance of these sukuk. The main objective of this company is to achieve sustainable economic and social development through the provision of Islamic financial services, and satisfying the desires of the society.

  • IFHubEd7_how_sukuk_can_play_role_drive_growth_sustainable_responsible_investment_rafe.pdf.jpg
  • Newsletter & Bulletin


  • Authors: Rafe Haneef (2017)

  • The imminent intergenerational wealth transfer from Baby Boomers to their heirs who are members of Generation Y, the Millennials, and Generation Z means that the financial institution that ignores ESG in its operations and financing does so at the risk of ignoring what matters to the bulk of its future customers. These emerging generations have made no secret of their preference that their assets generate social benefits and positively impact the environment in addition to yielding the expected financial benefits.

  • how_to_achieve_further_progress_in_islamic_finance_mirakhor_IIFS_june_2014.pdf.jpg
  • Industry Article


  • Authors: Mirakhor, Abbas (2014-12-01)

  • Islamic finance is a fairly young industry. It is only 30 years old. When I first began looking into the industry back in the late 1970s, the asset size was about US$50 million. The industry has now grown to reach US$1 trillion. This growth is a good sign; however, in order to progress further the industry and policy makers need to consider the lessons of the most recent financial crisis and explore the path that would take the industry forward without experiencing similar crises.

  • how_to_expand_role_islamic_banking_trading_saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • Ever since the establishment of Islamic banks in the 1970s, the difficulty in executing actual buy and sell transactions as the Quran commanded in the verse "Allah has permitted al-bay but prohibits riba" (Al-Baqarah 275) has spurred the industry into using questionable products that resemble interest-bearing loans as evident now in tawaruq munazzam and earlier in bay al-enah. Much of this unfortunate development in Islamic banking has to do with its deposit-taking function. Doing so requires the bank to follow stringent Basel Accord capital requirement against any risky positions it took in the business such as equity, leasing and trading positions. The trading business, namely buy a...

Browsing by Title

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 655 to 674 of 1687
  • hilah_in_the_Islamic_banking_instruments_in_Malaysia_aishath.PDF.jpg
  • Journal Article


  • Authors: Muneeza, Aishath; Nik Yusuf, Nik Nurul Atiqah; Mohd Iqbal, Norariefah; Noor Mohamad, Juyda (2011)

  • The main focus of this paper is to identify the hilah committed in the Islamic banking and finance instruments in Malaysia with reference to other jurisdictions and analyse the complexity in ascertaining the legal status of such practice either in equity or debt based financing when its practice associates with the interest of the people and a need to fulfill the maqasid al-Shariah. At the end of the paper, the authors would attempt to answer the question whether there is a need to uniform the Islamic banking instruments in all the jurisdictions of the world to facilitate cross-border transactions.

  • Historical_development_of_Islamic_venture_capital_Said.pdf.jpg
  • Journal Article


  • Authors: Rusni Hassan; Sa'id Adekunle Mikail; Muhamad Arifin (2011)

  • Venture capital is commonly defined as medium to long-term equity investment provided for unlisted companies to finance their start up, expansion, survival and change of ownership. The origin of which was traced back to mudharabah; which is commonly translated to Islamic limited partnership. The application of venture capital seems to be abandoned in Muslim world for long, while Western communities get steady development of it. Since the inception of Islamic banks for almost two decades, Islamic banks are also turning a blind eye to venture capital. In spite that venture capital is akin to Islamic bank's principle of profit and loss sharing. The first Islamic bank which was introduced...

  • history of islamic public finance.pdf.jpg
  • Chapter in Book


  • Authors: Cizakca, Murat (2012)

  • Gharar is usually examined in the literature from the perspective of modern Islamic private finance. In this article, I will focus on public finance and try to explain how this important concept found and application in history. It is a concept that has a long history, and was embedded in Islamic jurist work over centuries of commnets and interpretations.

  • honey_at_the_tip_of_the_tongue_corruption_aishath.PDF.jpg
  • Journal Article


  • Authors: Ismail Wisham; Aishath Muneeza (2011)

  • Corruption is a cancer spoiling the society. It inhibits the developed and developing nations to rise above and turn into developed nations. The developing countries are struggling to tackle the issue of corruption. This indeed affects the development of projects and impacts the grassroots by depriving the marginalised of essential benefits. The objective of this paper is to provide a descriptive analysis on international corruption, curbing legislations existing in the world today. It is argued here that corruption needs to be curbed at all cost. This article also proposes suggestions on how this issue may be resolved. The authors contend that a single set of legislation against corr...

  • hotel_investment_financing_call_shariah_consideration_new_methodology_assessment_screening_ahcene.pdf.jpg
  • Journal Article


  • Authors: Lahsasna, Ahcene (2015)

  • It investigates the nature of the hotel business from the Islamic law perspective and its importance in the Malaysian economy. It argues that exclusion of hotel business from Islamic investment and financing activities through Shari'ah screening methodology may be inappropriate. Hence, it recommends that the Shari'ah Advisory Council (SAC) of Securities Commission Malaysia reconsider the assessment and screening process for hotel business in the light of arguments put forward in the research in favour of its Shari'ah compliance.

  • house_financing_contracts_used_Islamic_banks_finished_properties_Malaysia_aishath et al.pdf.jpg
  • Journal Article


  • Authors: Aishath Muneeza; Muhammad Fahmi Fauzi; Muhammad Faisal Mat Nor; Mohamed Abideen; Muhammed Maher Ajroudi (2020)

  • The purpose of this paper is to find out the existing practices of the Islamic banks in providing financing to the customers who have a requirement to purchase a finished property and to examine the existing products used by the Islamic banks in this regard by providing an insight into the modus operandi of these products. In doing this, attempt is made to find out the most famous product offered by the Islamic banks in this regard and to find out whether in reality, Malaysian Islamic banking industry has moved away from Bai Bithaman Ajil (BBA) or not. This is a qualitative research, largely library-based, and it will consist of secondary sources such as books, journals, articles and ...

  • house_prices_bank_credits_Malaysia_aggregate_disaggregate_analysis_mansor_siong.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim; Siong Hook Law (2014)

  • The paper investigates the long run behavior of house prices and their dynamic interactions with bank credits, real output and interest rate for the case of Malaysia. Apart from the aggregate house prices, the analysis also covers various house price sub-indices, namely, the terraced house price index, the semi-detached house price index, the detached house price index and the high-rise price index. From the aggregate perspective, we note the presence of a long run relation among the variables. Moreover, the findings suggest the long run causality that runs from the included variables to both the aggregate house prices and bank credits. Dynamic interactions between house prices and ba...

  • house_price‐stock_price_relations_thailand_empirical_analysis_mansor.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim (2010)

  • The purpose of this paper is to empirically evaluate the wealth and credit-price effects in the relations between housing prices and stock prices for Thailand using quarterly data from 1995 to 2006. The analysis relies on a four-variable vector autoregression (VAR) framework consisting of house prices, stock prices, real output and consumer prices. Granger causality tests, impulse-response functions and variance decompositions simulated from the estimated VAR systems are adopted as bases for inferences. The results obtained from Granger causality tests, impulse response functions and variance decompositions all suggest a unidirectional causality that runs from stock prices to house pr...

  • housing_development_finance_corporation_Maldives_aishath.pdf.jpg
  • Industry Article


  • Authors: Aishath Muneeza (2016)

  • The Housing Development Finance Corporation (HDFC) of the Maldives is getting ready to issue their second sukuk in the last quarter of this year. The HDFC sukuk will be based on the mudarabah structure which was used in the country's debut listed corporate sukuk issued in 2013. In the Maldives, due to the absence of laws to create SPVs and due to the absence of trust law, inter alia, the Sukuk issued in the jurisdiction have some challenges in aligning the legal structure of sukuk to international practices adopted in other jurisdictions. Notwithstanding such limitations, the country successfully issued its debut corporate sukuk in 2013.

  • How_Islamic_equities_respond_monetary_actions_Anwer.pdf.jpg
  • Journal Article


  • Authors: Zaheer Anwer; Choudhary Wajahat Naeem Azmi; Shamsher Mohamad Ramadili Mohd (2019)

  • The purpose of this paper is to appraise the effectiveness of monetary policy actions in variant market conditions for Islamic stocks. These stocks offer ground for a natural experiment as they have restrictions on the line of business and their distinguished capital structure does not allow them to combat the liquidity crisis through the use of leverage. The paper uses the quantile regression approach for a multi-country sample of Islamic stock indices to assess the impact of domestic as well as US expansionary monetary policy on stock returns of Islamic indices at various locations of distribution of returns. It is found that, at lower return levels, an expansionary monetary policy ...

  • how_microfinance_prosper_analysis_environmental_social_governance_contex....pdf.jpg
  • Journal Article


  • Authors: Tauhidul Islam Tanin; Mohammad Ashraful Mobin; Ng Adam Boon Ka; Ginanjar Dewandaru; Kinan Salim; Malik Abdulrahman Nkoba; Ahmad Lutfi Abdul Razak (2019)

  • The spotlight of this study is to examine whether environmental, social, and governance performance affects the financial performance of microfinance institutions (MFIs). The topic has been of much interest to researchers and policymakers due to increased awareness among stakeholders on the adverse social and environmental impacts of business actions. Using a dataset covering 5 years for 62 MFIs across 34 countries, we find that environmental and governance performance has no impact on the financial performance of MFIs. As for the social-financial performance nexus, our results reveal a positive relationship using the depth of outreach as proxy of social performance. However, when wom...

  • how expansive are frontier_rodney.pdf.jpg
  • Chapter in Book


  • Authors: Wilson, Rodney (2009)

  • Islamic capital market products have developed enormously in recent years, with seven major types of sukuk and issuance in four currencies and by ten countries. Much has been achieved since 2000 and many lessons have been learnt. The industry has not suffered the types of setbacks experienced by conventional asset-backed securities, many of which, following the subprime debacle, are now worthless. Yet those involves in sukuk issuance cannot afford to be complacement, as there are many unresolved issues. The aim here is to consider these issues and assess where the industry is going

  • how_far_maldives_progressed_achieving_islamic_capital_market_Aishath.PDF.jpg
  • Industry Article


  • Authors: Aishath Muneeza (2018)

  • The Maldives Capital Market Strategic Plan 2015-19 (the Plan) has 10 programs out of which Program 4 specifically deals with developing Islamic capital market products. The strategic priority for Program 4 is broadening access to finance and investment opportunities. The overview of Program 4 states that the Plan aims to promote more investable products to investors of various preferences. Equity, debt, investment funds, private equity and venture capital funds are to be introduced in the form of conventional products and/or Shariah compliant products. As part of the development activities of the authorities, developing Shariah compliant products will be a high priority during the nex...

  • how_inflationary_oil_price_hikes_disaggregated _bok_Thailand_using_symmetric_asymmetric_cointegration_models_mansor_kanokwan.pdf.jpg
  • Journal Article


  • Authors: Mansor H. Ibrahim; Kanokwan Chancharoenchai (2014)

  • The present paper analyzes the inflationary effects of oil prices at the aggregate and disaggregated levels for Thailand using symmetric and asymmetric cointegration and error-correction modeling approaches. The cointegration test results suggest the presence of long-run relations between oil prices and the following price indices: aggregate consumer price index, non-food and beverage price index, housing and furnishing price index, energy price index, non-raw food and energy price index and transportation and communication price index. Meanwhile, food and beverage price index and raw food price index are not cointegrated with the oil prices. From the dynamic analyses, we uncover evid...

  • how_islamic_are_islamic_banks_non-linear_assessment_islamic_rate_conventional_rate_relations_mansoribrahim.pdf.jpg
  • Journal Article


  • Authors: Raditya Sukmana; Mansor H. Ibrahim (2017)

  • In this paper, we perform a non-linear assessment of Islamic rate - conventional rate relations for the case of Malaysia. Using monthly data covering the period January 1999 to November 2016, we find strong evidence supporting non-linear reactions of the Islamic investment rates to conventional rates in the long run and/or short-run for all matched maturities. More precisely, the Islamic investment rates exhibit faster upward movement (slower downward movement) in responses to conventional deposit rate increases (decreases). The asymmetric pricing behaviour of Islamic banks however tends to weaken as maturity lengthens. Accordingly, we infer that Islamic banks do not rigidly peg their...

  • how_Sudan_attracted_retail_investors_through_sukuk_shehama_magda.pdf.jpg
  • Industry Article


  • Authors: Ismail Abdel Mohsin, Magda (2019)

  • The issuance of sukuk in Sudan started since 1998 as an alternative Islamic instrument for liquidity management. In 1998 the Central Bank of Sudan established the Sudan Financial Services Company SFSC as the SPV with the aim to manage the issuance of these sukuk. The main objective of this company is to achieve sustainable economic and social development through the provision of Islamic financial services, and satisfying the desires of the society.

  • IFHubEd7_how_sukuk_can_play_role_drive_growth_sustainable_responsible_investment_rafe.pdf.jpg
  • Newsletter & Bulletin


  • Authors: Rafe Haneef (2017)

  • The imminent intergenerational wealth transfer from Baby Boomers to their heirs who are members of Generation Y, the Millennials, and Generation Z means that the financial institution that ignores ESG in its operations and financing does so at the risk of ignoring what matters to the bulk of its future customers. These emerging generations have made no secret of their preference that their assets generate social benefits and positively impact the environment in addition to yielding the expected financial benefits.

  • how_to_achieve_further_progress_in_islamic_finance_mirakhor_IIFS_june_2014.pdf.jpg
  • Industry Article


  • Authors: Mirakhor, Abbas (2014-12-01)

  • Islamic finance is a fairly young industry. It is only 30 years old. When I first began looking into the industry back in the late 1970s, the asset size was about US$50 million. The industry has now grown to reach US$1 trillion. This growth is a good sign; however, in order to progress further the industry and policy makers need to consider the lessons of the most recent financial crisis and explore the path that would take the industry forward without experiencing similar crises.

  • how_to_expand_role_islamic_banking_trading_saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • Ever since the establishment of Islamic banks in the 1970s, the difficulty in executing actual buy and sell transactions as the Quran commanded in the verse "Allah has permitted al-bay but prohibits riba" (Al-Baqarah 275) has spurred the industry into using questionable products that resemble interest-bearing loans as evident now in tawaruq munazzam and earlier in bay al-enah. Much of this unfortunate development in Islamic banking has to do with its deposit-taking function. Doing so requires the bank to follow stringent Basel Accord capital requirement against any risky positions it took in the business such as equity, leasing and trading positions. The trading business, namely buy a...