Displaying items by tag: Islamic Banking

Economic instability invariably causes hardship and moreover reduces the efficiency, in one way or another, with which resources are allocated. A significant degree of instability, as is widely believed, is caused by fluctuations in aggregate demand. However, much instability is also caused by interest-based financing. Economic instability commonly causes a range of inefficiencies, in one form or another............. Download the full article in pdf attachment (below)

Tuesday, 24 July 2012 13:27

Stabilising fractional reserve banking

The modern banking system is known as the “fractional reserve system.” The reason is that in this system, financial institutions are legally permitted to take a certain amount of risk with their depositors’ funds. This risk arises from lending the vast majority of deposits out at interest to various parties willing to borrow. The shareholders of financial institution earn interest income by making loans using depositors’ savings to borrowers at rates higher than those they pay to depositors............. Download the full article in pdf attachment (below)

Thursday, 19 July 2012 14:42

Interest-based financing and unemployment

Unemployment is a condition of idleness, whereby the unemployed person can find no work, and may thus become a burden on his family or society, or even turn to crime to survive. Contrary to a popular but misleading notion, there is no “natural” unemployment. All unemployment is unnatural, as it is hardly natural for a healthy human being capable of work to remain idle for any length of time............. Download the full article in pdf attachment (below)

Tuesday, 17 July 2012 14:36

Finance: Islamic and conventional

“Finance” has both a theoretical and a practical meaning. In the theoretical sense, finance is the knowledge of acquiring and allocating (utilising) funds, public as well as private. In the practical sense, finance is the management (earning and spending) of funds to achieve specific objectives, personal or social............ Download the full article in pdf attachment (below)

Since the start of the global economic crisis in 2008, financial education has been under
increased scrutiny from those dissecting what went wrong. Who, after all, had trained the
perpetrators of the crisis? Were the “masters of the universe” ever taught about ethics?
And if not, why not?

Training in Islamic finance, which was already gaining in popularity pre-crisis, has grown
from strength to strength, as it has developed a reputation as a haven of common sense
and relative security in uncertain times........... Download the full article in pdf attachment (below)
Wednesday, 29 April 2009 15:36

Islamic Banking and Finance

This is evidently an extensive field of study and research much of which is bound to fall beyond the scope of the limited resources of IAIS Malaysia. Some of the basic contours of Islamic economics and commerce have already been discussed in an earlier section of this book under “Balanced Economic Development,” which is one of the ten sub-themes of the Islam Hadhari, or should one say perhaps, Tajdid Hadhari (civilisational renewal), approach.  A basic outline of developments and areas of study and research where the Institute could play a role may be presented here in the following paragraphs.......... Download the full article in pdf attachment (below)
A Keynote address, “Islamic Finance in Malaysia: Achievements and Challenges”, - Tan Sri Zarinah Anwar, Chairman, Securities Commission Malaysia, 10 November 2011......... Download the full article in pdf attachment (below)
Monday, 30 April 2012 11:31

Asset-backed vs asset-based sukuk

Sukuk are Islamic certificates of investment. They signify co-ownership of productive resources, known as the “underlying assets.” Because income to sukukholders is generated by trading or real investment rather than mere lending, sukukholders earn profit rather than interest. As co-owners of productive assets, sukukholders face the risks of ownership. In particular, they face the risk that their assets may not generate profits or that may even incur losses. They also face the risk that the assets may be damaged or destroyed completely........... Download the full article in pdf attachment (below)

The world in general is in search of a better financial system that, among others, can ensure more stability, efficient allocation of resources, just distribution, responsibility of investors, risk sharing, sustainability, entrepreneurship and innovation.......... Download the full article in pdf attachment (below)

Friday, 29 April 2011 15:14

Sukuk: An Overview

The development of sukuk, though recent, has progressed spectacularly. The first-of-its-kind sukuk was initially launched in the year 2000 at the 11th Islamic Development Bank Annual Symposium. The main reason for the issuing of the sukuk at that time was to assist both sovereigns and corporates to have an access into the Islamic capital markets. From then onwards, it has been widely accepted that the sukuk industry has emerged as one of the main apparatuses of the Islamic financial system and has increasingly become an essential subset of the international financial system........... Download the full article in pdf attachment (below)
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