Displaying items by tag: Islamic Finance
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)
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)
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)
After three years of fault-finding, a standard script has emerged of the 2008 financial crisis that blames everything on the banks.
"Script" is not just a metaphor. Third place in the 2011 Oscar for best documentary was Inside Job, which, as the title suggests, points a stabbing finger in the eye of a conspiratorial Wall Street. The storyline is straightforward: financial firms co-opted regulators ("institutional capture", in the jargon) to let them take outrageous liberties with borrowed money, including lending to an unbelievable number of mugs who could not repay.......... Download the full article in pdf attachment (below)
Raising funds through profit and loss sharing (PLS) has a number of advantages over borrowing at interest. Some of these benefit entrepreneurs; others benefit society. We first look at benefits to entrepreneurs.
Perhaps the most important strength of raising capital on the basis of PLS is that rewards to investors are linked to the performance of the businesses they finance. In profits and loss sharing contracts, dividends to investors depend directly on the profitability (efficiency) of the enterprise they finance............ Download the full article in pdf attachment (below)
Securitisation is an integral part of financing or the process of funding public or private expenditure. Securities are typically issued in the form of (common) shares, sukuk or bonds. Different types of securities reflect different relationships – or contracts – between counterparties. Some signify creditor/debtor relationships, such as conventional bonds, while others reflect partnership relationships, such as Islamic sukuk or common shares. The former type reward lenders with interest, while the latter reward investors with profits........... Download the full article in pdf attachment (below)