Displaying items by tag: Islamic Banking
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)