Displaying items by tag: Islamic Banking

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)

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)

Thursday, 30 August 2012 11:29

Interest-based financing and economic stability

Stability is a property of persons, objects or systems. It is the capacity of a person, object or system to resist change. When we describe a person, object or a system as stable, we mean that the condition, position, or composition of the person, object or system is unlikely to change or change easily. Stable does not mean static, as change can take pace in a stable way. Stability can be broadly contrasted with chaos........Download the full article in pdf attachment (below)

Tuesday, 28 August 2012 15:21

Legal vs beneficial ownership in Islamic Finance

Ownership is the right to possess, use, sell, donate or give as a gift any asset (property) belonging to a person known as the “owner.” Ownership (milkiyah) is not the same as possession (qabd), as it is possible to own something without possessing it, or to possess something without owning it. Children may “own” items such as toys. However, from a legal point of view, the parents are the legal owners of their children’s belongings.......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)

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