Browsing by Topic Islamic finance

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Showing results 210 to 219 of 269
  • risk_sharing_shared_prosperity_Islamic_finance_abbas.pdf.jpg
  • Journal Article


  • Authors: Maghrebi, Nabil; Mirakhor, Abbas (2015)

  • This paper argues that risk sharing is an effective method of expanding participation of agents in economic growth and development and more effective sharing of fruits of prosperity than risk transfer that currently dominates financial systems. Kuala Lumpur Declaration of 2012, by a group of leading Shari'ah scholars and Muslim economists, considers risk sharing as the essence of Islamic finance, a litmus test of which is its ability to promote financial inclusion and asset-building capacity of the poor and thus better sharing of prosperity. The mobilisation of financial resources toward productive activities through risk sharing enables the Islamic financial system to actualize ec...

  • 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.

  • IF_Hub_Issue_1_Risk_sharing_in_age_of_crises_Abbas.pdf.jpg
  • Newsletter & Bulletin


  • Authors: Mirakhor, Abbas (2017)

  • In her book, Payback, 2008, Margaret Atwood claimed: "In Heaven, there are no debts, all have been paid, one way or another; but in Hell there's nothing but debts, and a great deal of payment is exacted, though you can't ever get all paid up. You have to pay, and pay, and keep on paying. So Hell is like an infernal maxed-out credit card that multiplies the charges endlessly." Publication of this book coincided with the Crisis of 2007/2008. Since then, there has been a proliferation of books on the subject of debt, beginning with a book by Reinhart and Rogoff, This Time Is Different. In the book, the authors argued that "though labeled as banking or currency, or even balance of payment...

  • risk_sharing_philosophy_of_Islamic_finance_obiyathulla_daud.pdf.jpg
  • Journal Article


  • Authors: Bacha, Obiyathulla Ismath; Vicary Abdullah, Daud (2016)

  • Economists typically divide the overall macro economy into two sectors, the real sector and financial sector. The real sector represents the productive capacity of the economy and produces the goods and services that accounts for a nation's GDP (Gross Domestic Product). The financial sector on the other hand serves to provide the financing needed by the real sector to produce the goods and services. Islamic economics requires that all financial returns be anchored in real sector returns. For an economy to function optimally, both the real and financial sectors need to function optimally.

  • 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_myth_reality.pdf.jpg
  • Academic Presentation


  • Authors: Mirakhor, Abbas; Ng, Adam Boon Ka (2017)

  • The slides highlight: 1) uncertainty and risk - transfer, shift or share; 2) the first myth and reality - is the regime of risk transfer sustainable? Impossible contract; 3) the second myth and reality - translating risk sharing into new realities: network effects and big data machine learning.

  • item.jpg
  • PhD


  • Authors: Mohd Hussan, Subithabhanu (2018)

  • One of the objectives of the implementation of the Islamic Financial Services Act 2013 (IFSA) is to promote greater risk-sharing in the Islamic financial industry. Accordingly, IFSA has distinguished the two major sources of funding for an Islamic banking institution, i.e. deposits and investment accounts. However, more than five years into the implementation, the Act is deemed to have failed in terms of upholding its risk-sharing values, where change could only be observed in the statutory position of investment account. This dissertation aims to motivate Islamic banks to move away from continuing risk-transfer practices, by proposing a risk-sharing investment account model (includin...

  • 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...

Browsing by Topic 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 210 to 219 of 269
  • risk_sharing_shared_prosperity_Islamic_finance_abbas.pdf.jpg
  • Journal Article


  • Authors: Maghrebi, Nabil; Mirakhor, Abbas (2015)

  • This paper argues that risk sharing is an effective method of expanding participation of agents in economic growth and development and more effective sharing of fruits of prosperity than risk transfer that currently dominates financial systems. Kuala Lumpur Declaration of 2012, by a group of leading Shari'ah scholars and Muslim economists, considers risk sharing as the essence of Islamic finance, a litmus test of which is its ability to promote financial inclusion and asset-building capacity of the poor and thus better sharing of prosperity. The mobilisation of financial resources toward productive activities through risk sharing enables the Islamic financial system to actualize ec...

  • 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.

  • IF_Hub_Issue_1_Risk_sharing_in_age_of_crises_Abbas.pdf.jpg
  • Newsletter & Bulletin


  • Authors: Mirakhor, Abbas (2017)

  • In her book, Payback, 2008, Margaret Atwood claimed: "In Heaven, there are no debts, all have been paid, one way or another; but in Hell there's nothing but debts, and a great deal of payment is exacted, though you can't ever get all paid up. You have to pay, and pay, and keep on paying. So Hell is like an infernal maxed-out credit card that multiplies the charges endlessly." Publication of this book coincided with the Crisis of 2007/2008. Since then, there has been a proliferation of books on the subject of debt, beginning with a book by Reinhart and Rogoff, This Time Is Different. In the book, the authors argued that "though labeled as banking or currency, or even balance of payment...

  • risk_sharing_philosophy_of_Islamic_finance_obiyathulla_daud.pdf.jpg
  • Journal Article


  • Authors: Bacha, Obiyathulla Ismath; Vicary Abdullah, Daud (2016)

  • Economists typically divide the overall macro economy into two sectors, the real sector and financial sector. The real sector represents the productive capacity of the economy and produces the goods and services that accounts for a nation's GDP (Gross Domestic Product). The financial sector on the other hand serves to provide the financing needed by the real sector to produce the goods and services. Islamic economics requires that all financial returns be anchored in real sector returns. For an economy to function optimally, both the real and financial sectors need to function optimally.

  • 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_myth_reality.pdf.jpg
  • Academic Presentation


  • Authors: Mirakhor, Abbas; Ng, Adam Boon Ka (2017)

  • The slides highlight: 1) uncertainty and risk - transfer, shift or share; 2) the first myth and reality - is the regime of risk transfer sustainable? Impossible contract; 3) the second myth and reality - translating risk sharing into new realities: network effects and big data machine learning.

  • item.jpg
  • PhD


  • Authors: Mohd Hussan, Subithabhanu (2018)

  • One of the objectives of the implementation of the Islamic Financial Services Act 2013 (IFSA) is to promote greater risk-sharing in the Islamic financial industry. Accordingly, IFSA has distinguished the two major sources of funding for an Islamic banking institution, i.e. deposits and investment accounts. However, more than five years into the implementation, the Act is deemed to have failed in terms of upholding its risk-sharing values, where change could only be observed in the statutory position of investment account. This dissertation aims to motivate Islamic banks to move away from continuing risk-transfer practices, by proposing a risk-sharing investment account model (includin...

  • 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...