Displaying items by tag: Islamic Banking

Who would have thought that two Chinese corporates with serious mainland connections would be spearheading capital market innovation in Malaysia’s ringgit market, notching up a number of notable firsts in the process? Their entry into the sukuk market with debut issuances, coincidentally last Thursday, marks a new milestone in the five decades of the contemporary Islamic finance industry..............................Download the full article in pdf attachment (below)

Although still in its infancy, there are already six crowdfunding companies operating in Malaysia. One of them was co-founded by Elain Lockman, an actuarial science graduate with a Masters in operational research who was one of the early employees at MDEC. She also had stints at iPerintis [now called Petronas ICT) and Malaysia Debt Ventures before venturing on her own as a consultant for tech clients such as DiGi Telecommunications, Packet One Networks, Green Science and MSC Management Services. Last year, she helped found Ata Plus with two other business partners. Elain talks to SAVVY about what crowd-funding is all about and its prospects in Malaysia..............................Download the full article in pdf attachment (below)

THE International Monetary Fund (IMF), especially under its current managing director, Christine Lagarde, has been a proactive supporter of Islamic banking, and, together with the World Bank, has declared it a priority for its operations in countries with Islamic banking. In a recent report titled “Ensuring Financial Stability in Countries with Islamic Banking”, IMF economists have thrown down the gauntlet to its board with a plan of action that, if approved, would have game-changing implications for the regulation and development of the industry, thus further promoting its stability and soundness............................Download the full article in pdf attachment (below)

When first conceptualised in the 1950s and 1960s, it was envisioned that Islamic banks would take the form of a publically-owned social service, similar to that of education and health. Islamic banks would offer current accounts that would not earn interest and saving accounts that paid dividends on the basis of partnership. The capital made available from the saving accounts is considered as investment, thus, would be used by businessmen through partnership agreements where profits and losses would be shared......................Download the full article in pdf attachment (below)

Strong views were recently expressed by the Muslim Consumers Association of Malaysia that the Islamic banking and finance industry follows the letter but not the spirit of Islam. “Perbankan Islam tiad ‘roh Islam, zalim” (Utusan, Oct 23, 2015) raises some serious concerns of society. This is despite the fact that “Islamic banking assets grew at an annual rate of 17.6 per cent between 2009 and 2013, and will grow by an average of 19.7 per cent a year in 2018 (The Economist, Sept 13, 2014); Khalid Howladar of Moody’s rating agency, calls this “a landmark year” for Islamic finance, in that it is moving from “a very esoteric asset class to one that’s more… global”......................Download the full article in pdf attachment (below)

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)

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)

Patuh syariah dalam Akta Perkhidmatan Kewangan Islam (APKI) 2013 adalah wajib. Mengikut seksyen 28 akta itu, sebarang kegagalan untuk patuh syariah boleh didenda tidak melebihi RM25 juta dan lapan tahun penjara atau kedua-duanya...............Download the full article in pdf attachment (below)

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)