Displaying items by tag: Islamic Finance

Malaysia and Morocco are linked in Islamic culture and history. The earliest linkage between our nations can probably be traced back to Ibn-Battuta landing in Malacca during his voyage in 1325. In modern times, our countries enjoy well-established diplomatic and economic relations, and it is my hope that this business mission will pave the way for stronger ties between our two countries. In particular, I hope it will foster closer collaboration in Islamic finance, which is also known as participative finance here in Morocco. Morocco, located at the confluence between the Atlantic Ocean and the Mediterranean Sea, is well-placed as a gateway for trade and investment not just in Africa, but also in Europe and the Middle East....................Download the full article in pdf attachment (below)
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The recent development of Islamic banking and finance (IBF) in its practice as well as its discourse has been dominated by technical/operational issues; i.e., how to produce financial products or contracts that are compliant with Islamic law (usually known as Shari‘ah compliant). Many view this stage as a seamless continuation of the early three decades (1960’s-1980’s) of IBF’s development, in which the scholars and practitioners laid its philosophical and conceptual foundations. Some, however, do not view the impressive development in a relatively short period as a natural progression from the pioneering stage. Thus many questions have been raised about the Islamicity of IBF and the nature of its progress..................Download the full article in pdf attachment (below)

Wednesday, 08 April 2015 15:19

FAQs on Islamic Banking and Finance

This article offers answers to some of the frequently asked questions (FAQs) on Education, Islamic Banking and Finance, and Economics, such as; What vision of education does IAIS espouse? What are the conditions for meeting the IAIS vision of education? What challenges need to be overcome?.................Download the full article in pdf attachment (below)

The foundational principles of modern neoclassical economics, as of other disciplines of the social sciences, have been influenced by the overall trajectory of post-enlightenment, secular, humanistic thought and its epistemological roots such as rationalism, methodological individualism, and the assumed supremacy of the scientific method as a way of evaluating all forms of knowledge. This paper contends that an Islamic economics and finance bereft of analyzing and addressing these principles has inadvertently reinforced the very same problematic structures it originally intended to replace.

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Tuesday, 01 April 2014 15:00

Liquidity risk management in Islamic finance

Liquidity risk is a risk that commonly arises in conventional banking. It is the risk that a bank may be unable to meet its financial obligations due to a shortage of cash (liquidity). Liquidity risk arises from the way banks operate. Banks intermediate between parties with surplus capital (savings) and parties that are short of capital (borrowers). In this way banks help to channel  funds from areas  where a surplus of funds exists, to areas where a shortage of funds is experienced.  They do this by borrowing from depositors and lending the same funds to borrowers, while keeping only a small amount of cash on hand to meet unexpected withdrawals.......... Download the full article in pdf attachment (below)

“Benchmarking” in Islamic finance is a method of predetermining the magnitude of profits paid by issuers of Islamic sukuk (certificates of investment) to investors. Benchmarking is done by linking investors’ profits to an interest rate, usually Libor (London Interbank Overnight Rate). Normally, a few basis points are added to the reference interest rate to arrive at the benchmarked profit rate.......... Download the full article in pdf attachment (below)

Tuesday, 04 December 2012 09:51

Malaysia well positioned to issue CSR sukuk

Malaysia is well positioned to issue corporate social responsibility (CSR) Islamic bonds (sukuk) given the existence of appropriate laws, said Iqbal Khan, the second recipient of the prestigious Royal Award for Islamic Finance. The country is today a leading international centre for sukuk issuance.......... Download the full article in pdf attachment (below)

Monday, 03 December 2012 11:56

Malaysia ‘a global brand’

SOUND financial management by the Barisan Nasional government has made Malaysia a global brand. Terengganu representative Datuk Seri Idris Jusoh, when proposing the motion on economy, said this was evident when international economic bodies acknowledged and recognised Malaysia.......... Download the full article in pdf attachment (below)

Wednesday, 19 September 2012 17:15

Interest (riba) vs profit (ribh)

Literally, riba means “increase.” However, riba is commonly translated into English as “interest.” Riba is mentioned in the Qur’an in 30:39, 4:161, 3:130, 2:275-276, and 278. Most commentators agree that riba is a sum of money a lender claims from a borrower on top of the principal amount of a loan, as a reward for extending the loan, or for allowing more time for repayment. It does not matter whether the additional amount is small or large; even the smallest amount is still riba because it constitutes an “addition.”.......... Download the full article in pdf attachment (below)

When Islamic finance first appeared in its modern form in the 1990s, expectations were high. It was hoped that Islamic finance would provide a more stable – and just – alternative to the conventional system, based on riba and characterised by roller-coaster cycles of boom and bust. Islamic finance would avoid the pitfalls of conventional finance, among them the rise of large and growing levels of debt – public and private.......... Download the full article in pdf attachment (below)

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