Displaying items by tag: Profit Sharing

Friday, 14 September 2012 15:38

Pitfalls of interest-riba (revised)

Lending at interest has several significant, albeit infrequently noted, shortcomings. It contributes to inflation and widens the gap between the wealthy and the less well to do. Interest-based lending adds to inflation in at least two ways. A substantial amount of spending is financed by money borrowed at interest. Household, corporate and government debt levels are at all time highs in many countries. The extra demand for goods and services, made possible by borrowing, adds to “demand pull” inflation.......... Download the full article in pdf attachment (below) [revised 21April2012]

Thursday, 13 September 2012 16:45

Transforming interest based financing into PLS

The fundamental inefficiency of interest-based financing means that the typical economy will unavoidably operate at below full employment capacity. In other words, it will only be able to produce a lower than potential output. This signifies a degree of waste. As a result of artificially depressed levels of overall production resulting from the utilisation of interest-based financing,........Download the full article in pdf attachment (below)

Tuesday, 14 August 2012 11:02

Commitment and belief

WILL the "truth" set Islamic banking free from the "cheer-leading reins" that may be holding it back from authenticity-cum-innovation? Today, Mushtak Parker provides his insights on a successful Islamic banker and institution and some of the milestones of the industry.......Download the full article in pdf attachment (below)

Equitable sharing of wealth brings a number of advantages. When wealth is shared equitably – in other words justly – all members of society are able to gain and keep some wealth. Thus, everyone has a reason to become and remain a content member of that society. This contributes to peace. A community is bound together more firmly when wealth is shared than when it is distributed unevenly......Download the full article in pdf attachment (below)

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, 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)

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)

Tuesday, 17 January 2012 14:21

Year of index outperformance

THE year 2011 was the year for (Malaysia) syariah-compliant index outperformance against all conventional
developed and emerging market country indicies and almost all frontier countries.


The Islamic finance industry has not talked up the Islamic equity capital market story, as the Islamic debt
capital market poster child, 'Sukuk,' has become the alter-ego of Islamic finance. But, does that amount to
concentration brand and business risk for a US$1 trillion (RM3.15 trillion), where Sukuk are, at best, 20 per
cent of Islamic finance?.......... Download the full article in pdf attachment (below)

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