Browsing by Topic Islamic finance::Risk sharing in Islamic finance

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Showing results 8 to 17 of 17
  • regulatory_framework_Islamic_finance_abbas.pdf.jpg
  • Industry Article


  • Authors: Mirakhor, Abbas (2014)

  • Generally, the objective of a regulatory framework within which a financial system operates is established for the purpose of protecting the system from abuses that may threaten the stability of financial relations. In doing so, attention is paid to the risk of financial transactions. The risk of any transaction can be managed in three ways. Risk can be transferred, shifted or shared. Depositors transfer their risk to a bank that then transfers it to borrowers. In this case the bank is an intermediary. Risk can be shifted in two different ways. A person shifts the risk of life or health to an insurance company with full knowledge and acquiescence of the latter that accepts the shifted...

  • regulatory_framework_for_islamic_finance_muawanah_obiyathulla_abbas.JPG.jpg
  • Chapter in Book


  • Authors: Lajis, Siti Muawanah; Bacha, Obiyathulla Ismath; Mirakhor, Abbas (2016)

  • The role of regulation extends beyond ensuring stability and confidence in the financial system, as it is also behavioral shaper of market players. The laws, standards, and guidelines issued are instrumental in creating an incentive structure for market players to behave in certain ways. Using incentive audit approach, this paper attempts to examine the efficacy of the evolving Malaysian regulatory and supervisory framework for Islamic banking, in preserving financial stability as well as supporting the growth of the financial system and real economy. The findings suggest that the present framework unintentionally misaligns incentives and discourages Islamic banks from fully embracing...

  • item.jpg
  • Master


  • Authors: Hassaan, Mohamed (2015)

  • Financial intermediaries such as banks face different risks during the course of their business. Handling these risks become more challenging especially while operating in a competitive market environment. As Islamic banking industry is relatively new, an adequate regulatory and legal framework to support the industry is still lacking in many countries. Further the nature of risk faced by Islamic banks in certain circumstances is different at the organizational and product level as compared to their conventional counterparts ... Available in physical copy only (Call Number: t HD 61 M697)

  • risk sharing as the epistemological foundation_abbas.pdf.jpg
  • Chapter in Book


  • Authors: Mirakhor, Abbas; Smolo, Edib (2013)

  • Epistemology is defined as the theory of the method or grounds of knowledge. Simply stated, it deals with the question of what we know about a phenomenon and how do we know it. It is used in this paper to clarify the terms and phenomena and show deviations of actual practices from its epistemology. Beofre Islamic finance made its debut in the conventional space, there was what could be a 'market failure'in the financial system in the form of substantial unmet demands for Shari'ah-compliant financial products.

  • risk_sharing_corporate_public_finance_contribution_islamic_finance_abbas_obiyathulla.pdf.jpg
  • Journal Article


  • Authors: Bacha, Obiyathulla Ismath; Mirakhor, Abbas; Askari, Hossein (2015)

  • The risk sharing principles of Islamic finance as embodied in mudarabah and musharakah contracts have been extensively used throughout history. For example, the maritime trades of 14th century Italian city-states with Middle East and Asia were financed by ‘sea loans' and ‘commenda’. Historians have traced the development of commenda to borrowing from the concept of mudarabah used by Muslims (Udovitch, 1962; 1967; 1970; Mirakhor, 2003). They have also recorded how crucially important these contracts were to the growth of not only the maritime trade but also to the economic, social and political progress of European city-states.

  • risk_sharing_finance_islamic_finance_alternative_cover.jpg.jpg
  • Book


  • Authors: Askari, Hossein; Iqbal, Zamir; Krichene, Noureddine; Mirakhor, Abbas (2012)

  • In this volume, the authors make an important attempt to develop the building blocks of an Islamic financial system and elaborate on its implementation as a comprehensive system. They make a convincing case for the world to shed its reliance on debt, interest and leveraging, and revamp the global financial system to rely more heavily on equity financing, genuine asset securitization linking the payoffs of financial securities to the underlying assets. This would ensure promoting wider risk sharing and a more stable financial environment.

  • risk_sharing_public_policy_contribution_Islamic_finance_mirakhor.pdf.jpg
  • Journal Article


  • Authors: Askari, Hossein; Mirakhor, Abbas (2014)

  • A major reason for the recurrent episodes of financial instability is the predominance of interest-based debt and leveraging. Financial stability is achievable through risk sharing finance instead of risk shifting that characterizes contemporary finance. A risk sharing system serves the true function of finance as facilitator of real sector activities and avoids the emergence of a “paper economy” where there is gradual decoupling of finance from the real sector. Islamic finance was initially proposed as a profit-loss sharing system, but its core principle is risk sharing. In prohibiting interest-based debt instruments, Islam grounds finance on a strong risk sharing footing. Although s...

  • risk_sharing_versus_risk_transfer_islamic_finance_evaluation_zubair.pdf.jpg
  • Journal Article


  • Authors: Hasan, Zubair (2015)

  • Some recent writings on Islamic finance have resuscitated the old ‘no risk, no gain’ precept from the earlier literature in the wake of current financial crisis. They argue that the basic reason for the recurrence of such crises is the conventional interest-based financial system that subsists purely on transferring of risks. In contrast, Islam shuns interest and promotes sharing of risks, not their transfer. The distinction is used to make a case for replacing the conventional system with the Islamic; for that alone is thought as the way to ensuring the establishment of a just and stable crisis free economic system. Islamic banks have faced the current crisis bette...

  • equity_premium_puzzle_ambiguity_aversion_institutional_quality_implications_Islamic_finance_abbas.pdf.jpg
  • Journal Article


  • Authors: Erbas, S. Nuri; Mirakhor, Abbas (2010)

  • With cross-section data from 53 emerging and mature markets, we provide evidence that equity premium puzzle is a global phenomenon. In addition to risk aversion, equity premium may reflect ambiguity aversion. We explore the sources of equity premium using some pertinent fundamental independent variables, as well as the World Bank institutional quality indexes and other proxies for the degree of ambiguity in the sample countries. Some World Bank and other indexes are statistically significant, which indicates that a large part of equity premium may reflect investor aversion to ambiguities resulting from institutional weaknesses. Implications of the results for Islamic finance are discu...

  • item.jpg
  • PhD


  • Authors: Lajis, Siti Muawanah (2016)

  • The role of regulation extends beyond ensuring stability and confidence in the financial system, as it is also a behavioral shaper of market players. The laws, standards and guidelines issued are instrumental in creating an incentive structure for market players to behave in certain ways. If well designed, these tools will induce appropriate behavior that is consistent with the social objective of systemic stability and equitable economic prosperity ... Available in physical copy only (Call Number: t HD 61 S623)

Browsing by Topic Islamic finance::Risk sharing in Islamic finance

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 8 to 17 of 17
  • regulatory_framework_Islamic_finance_abbas.pdf.jpg
  • Industry Article


  • Authors: Mirakhor, Abbas (2014)

  • Generally, the objective of a regulatory framework within which a financial system operates is established for the purpose of protecting the system from abuses that may threaten the stability of financial relations. In doing so, attention is paid to the risk of financial transactions. The risk of any transaction can be managed in three ways. Risk can be transferred, shifted or shared. Depositors transfer their risk to a bank that then transfers it to borrowers. In this case the bank is an intermediary. Risk can be shifted in two different ways. A person shifts the risk of life or health to an insurance company with full knowledge and acquiescence of the latter that accepts the shifted...

  • regulatory_framework_for_islamic_finance_muawanah_obiyathulla_abbas.JPG.jpg
  • Chapter in Book


  • Authors: Lajis, Siti Muawanah; Bacha, Obiyathulla Ismath; Mirakhor, Abbas (2016)

  • The role of regulation extends beyond ensuring stability and confidence in the financial system, as it is also behavioral shaper of market players. The laws, standards, and guidelines issued are instrumental in creating an incentive structure for market players to behave in certain ways. Using incentive audit approach, this paper attempts to examine the efficacy of the evolving Malaysian regulatory and supervisory framework for Islamic banking, in preserving financial stability as well as supporting the growth of the financial system and real economy. The findings suggest that the present framework unintentionally misaligns incentives and discourages Islamic banks from fully embracing...

  • item.jpg
  • Master


  • Authors: Hassaan, Mohamed (2015)

  • Financial intermediaries such as banks face different risks during the course of their business. Handling these risks become more challenging especially while operating in a competitive market environment. As Islamic banking industry is relatively new, an adequate regulatory and legal framework to support the industry is still lacking in many countries. Further the nature of risk faced by Islamic banks in certain circumstances is different at the organizational and product level as compared to their conventional counterparts ... Available in physical copy only (Call Number: t HD 61 M697)

  • risk sharing as the epistemological foundation_abbas.pdf.jpg
  • Chapter in Book


  • Authors: Mirakhor, Abbas; Smolo, Edib (2013)

  • Epistemology is defined as the theory of the method or grounds of knowledge. Simply stated, it deals with the question of what we know about a phenomenon and how do we know it. It is used in this paper to clarify the terms and phenomena and show deviations of actual practices from its epistemology. Beofre Islamic finance made its debut in the conventional space, there was what could be a 'market failure'in the financial system in the form of substantial unmet demands for Shari'ah-compliant financial products.

  • risk_sharing_corporate_public_finance_contribution_islamic_finance_abbas_obiyathulla.pdf.jpg
  • Journal Article


  • Authors: Bacha, Obiyathulla Ismath; Mirakhor, Abbas; Askari, Hossein (2015)

  • The risk sharing principles of Islamic finance as embodied in mudarabah and musharakah contracts have been extensively used throughout history. For example, the maritime trades of 14th century Italian city-states with Middle East and Asia were financed by ‘sea loans' and ‘commenda’. Historians have traced the development of commenda to borrowing from the concept of mudarabah used by Muslims (Udovitch, 1962; 1967; 1970; Mirakhor, 2003). They have also recorded how crucially important these contracts were to the growth of not only the maritime trade but also to the economic, social and political progress of European city-states.

  • risk_sharing_finance_islamic_finance_alternative_cover.jpg.jpg
  • Book


  • Authors: Askari, Hossein; Iqbal, Zamir; Krichene, Noureddine; Mirakhor, Abbas (2012)

  • In this volume, the authors make an important attempt to develop the building blocks of an Islamic financial system and elaborate on its implementation as a comprehensive system. They make a convincing case for the world to shed its reliance on debt, interest and leveraging, and revamp the global financial system to rely more heavily on equity financing, genuine asset securitization linking the payoffs of financial securities to the underlying assets. This would ensure promoting wider risk sharing and a more stable financial environment.

  • risk_sharing_public_policy_contribution_Islamic_finance_mirakhor.pdf.jpg
  • Journal Article


  • Authors: Askari, Hossein; Mirakhor, Abbas (2014)

  • A major reason for the recurrent episodes of financial instability is the predominance of interest-based debt and leveraging. Financial stability is achievable through risk sharing finance instead of risk shifting that characterizes contemporary finance. A risk sharing system serves the true function of finance as facilitator of real sector activities and avoids the emergence of a “paper economy” where there is gradual decoupling of finance from the real sector. Islamic finance was initially proposed as a profit-loss sharing system, but its core principle is risk sharing. In prohibiting interest-based debt instruments, Islam grounds finance on a strong risk sharing footing. Although s...

  • risk_sharing_versus_risk_transfer_islamic_finance_evaluation_zubair.pdf.jpg
  • Journal Article


  • Authors: Hasan, Zubair (2015)

  • Some recent writings on Islamic finance have resuscitated the old ‘no risk, no gain’ precept from the earlier literature in the wake of current financial crisis. They argue that the basic reason for the recurrence of such crises is the conventional interest-based financial system that subsists purely on transferring of risks. In contrast, Islam shuns interest and promotes sharing of risks, not their transfer. The distinction is used to make a case for replacing the conventional system with the Islamic; for that alone is thought as the way to ensuring the establishment of a just and stable crisis free economic system. Islamic banks have faced the current crisis bette...

  • equity_premium_puzzle_ambiguity_aversion_institutional_quality_implications_Islamic_finance_abbas.pdf.jpg
  • Journal Article


  • Authors: Erbas, S. Nuri; Mirakhor, Abbas (2010)

  • With cross-section data from 53 emerging and mature markets, we provide evidence that equity premium puzzle is a global phenomenon. In addition to risk aversion, equity premium may reflect ambiguity aversion. We explore the sources of equity premium using some pertinent fundamental independent variables, as well as the World Bank institutional quality indexes and other proxies for the degree of ambiguity in the sample countries. Some World Bank and other indexes are statistically significant, which indicates that a large part of equity premium may reflect investor aversion to ambiguities resulting from institutional weaknesses. Implications of the results for Islamic finance are discu...

  • item.jpg
  • PhD


  • Authors: Lajis, Siti Muawanah (2016)

  • The role of regulation extends beyond ensuring stability and confidence in the financial system, as it is also a behavioral shaper of market players. The laws, standards and guidelines issued are instrumental in creating an incentive structure for market players to behave in certain ways. If well designed, these tools will induce appropriate behavior that is consistent with the social objective of systemic stability and equitable economic prosperity ... Available in physical copy only (Call Number: t HD 61 S623)