This document discusses objections to interest-free banking systems and evaluates arguments against their practicability. It argues that contrary to objections, interest-free banking using profit-and-loss sharing can effectively allocate resources through projected profit rates. It also notes that Islamic systems discourage idle funds through zakat and potential taxes. The document then provides an overview of Islamic banking principles, areas of operations including various financing modes, and the potential of Islamic banks going forward given the Muslim population.
This document discusses the principles of banking in Islam. It explains that in Islam, banking revolves around the word "Massraf" which means purpose, and the purpose of Islamic banking is to unite the primary factors of production - man, money, and commodities - for economic activities that benefit the community. It notes that Islamic banking does not involve lending or borrowing money and charging interest, but rather involves investment partnerships between depositors and wealth managers, with profits shared accordingly. The document cautions that simply removing interest from conventional banking is not sufficient to make it compliant with Islamic principles, as other forms of impermissible increase known as "Riba" must also be eliminated.
The document provides an overview of Islamic finance and banking. It defines Islamic finance as financial business that complies with Shariah (Islamic law) and avoids elements like interest, gambling, and uncertainty. It discusses the history and concepts of Islamic banking, highlighting that relationships are based on profit and loss sharing rather than debt. Common Islamic banking products and contracts are explained such as Murabahah, Mudarabah, Musharakah, Ijara, Salam and Sukuk. The global growth of the industry is summarized. In conclusion, it is stated that Islamic banking has grown significantly in the last 40 years while adhering to risk-sharing models of finance.
Growth of economy thorough islamic banking Hamail A Ahmed
Islamic banking originated from partnerships established by the Prophet Muhammad where capital, labor, and entrepreneurship were combined to share profits and losses. Islamic banks in Pakistan include Meezan Bank, Habib Bank, and Bank of Khyber. Despite Indonesia being majority Muslim, Islamic banking assets only account for 5% of total banking assets, showing room for growth. The Indonesian government aims to increase this to 15% by 2023 through various strategies. Key advantages of Islamic banking include prohibiting interest and speculation, emphasizing real economic activity, and profit/loss sharing. However, issues related to liquidity management, asset valuation, and monetary policy implementation remain challenges for Islamic banking.
This document provides an overview of Islamic banking including its meaning, principles, deposits, differences from conventional banking, benefits, issues and a SWOT analysis. The key points are:
- Islamic banking complies with Sharia law and prohibits interest, requiring profit and loss sharing. It aims to achieve socially and financially acceptable objectives.
- The basic principles are sharing of profit and loss, prohibiting investment in unlawful businesses and interest. Deposits include savings, current and investment accounts.
- It differs from conventional banking in its basis in Islamic principles, risk sharing approach, and status as partners rather than creditors/debtors.
- Benefits include inclusive economic growth, availability of funds, and protection from
Islamic and conventional banking differ in their core principles and operations. Islamic banking prohibits interest and invests according to Sharia law, focusing on profit/loss-sharing. It aims to stimulate broad business activity and equitable wealth distribution. In contrast, conventional banking charges interest to maximize shareholder wealth, concentrating resources among a few. Their objectives, financing modes, investment practices, risk-sharing approaches and impact on income distribution distinguish Islamic and conventional banking.
A negative interest rate policy will influence the way lending
and borrowing rates are charged in conventional Financial markets. The objective behind such a policy is to deliberately
boost aggregate demand and output by encouraging business and trade activities, which is no different from principles of Islamic Finance. This article provide insight into how Islamic Finance can help in achieving the same objectives expect from negative interest rate.
Islamic banking is expanding from the Gulf to India. It prohibits interest and investing in businesses like alcohol or pornography. Products include profit-sharing models like mudarabah and murabahah. Regulatory issues include existing Indian banking laws not fully accommodating practices like ijarah leases. Overall, Islamic banking has potential in India given its diversity, though interest-free options already exist within the current banking system.
The document discusses issues with the current structure of Islamic banking and calls for restructuring. It notes that Islamic banking is meant to solve economic problems from a moral perspective by integrating ethics and prohibiting interest, but currently most Islamic banks operate parallel to conventional banks and rely on fixed returns rather than profit/loss sharing. This exploits depositors and does not ensure justice. The document argues that Islamic banking needs to move to purely profit/loss sharing models and discard fixed return techniques to better achieve its goals of encouraging savings, equitable distribution, and justice between parties.
This document discusses the principles of banking in Islam. It explains that in Islam, banking revolves around the word "Massraf" which means purpose, and the purpose of Islamic banking is to unite the primary factors of production - man, money, and commodities - for economic activities that benefit the community. It notes that Islamic banking does not involve lending or borrowing money and charging interest, but rather involves investment partnerships between depositors and wealth managers, with profits shared accordingly. The document cautions that simply removing interest from conventional banking is not sufficient to make it compliant with Islamic principles, as other forms of impermissible increase known as "Riba" must also be eliminated.
The document provides an overview of Islamic finance and banking. It defines Islamic finance as financial business that complies with Shariah (Islamic law) and avoids elements like interest, gambling, and uncertainty. It discusses the history and concepts of Islamic banking, highlighting that relationships are based on profit and loss sharing rather than debt. Common Islamic banking products and contracts are explained such as Murabahah, Mudarabah, Musharakah, Ijara, Salam and Sukuk. The global growth of the industry is summarized. In conclusion, it is stated that Islamic banking has grown significantly in the last 40 years while adhering to risk-sharing models of finance.
Growth of economy thorough islamic banking Hamail A Ahmed
Islamic banking originated from partnerships established by the Prophet Muhammad where capital, labor, and entrepreneurship were combined to share profits and losses. Islamic banks in Pakistan include Meezan Bank, Habib Bank, and Bank of Khyber. Despite Indonesia being majority Muslim, Islamic banking assets only account for 5% of total banking assets, showing room for growth. The Indonesian government aims to increase this to 15% by 2023 through various strategies. Key advantages of Islamic banking include prohibiting interest and speculation, emphasizing real economic activity, and profit/loss sharing. However, issues related to liquidity management, asset valuation, and monetary policy implementation remain challenges for Islamic banking.
This document provides an overview of Islamic banking including its meaning, principles, deposits, differences from conventional banking, benefits, issues and a SWOT analysis. The key points are:
- Islamic banking complies with Sharia law and prohibits interest, requiring profit and loss sharing. It aims to achieve socially and financially acceptable objectives.
- The basic principles are sharing of profit and loss, prohibiting investment in unlawful businesses and interest. Deposits include savings, current and investment accounts.
- It differs from conventional banking in its basis in Islamic principles, risk sharing approach, and status as partners rather than creditors/debtors.
- Benefits include inclusive economic growth, availability of funds, and protection from
Islamic and conventional banking differ in their core principles and operations. Islamic banking prohibits interest and invests according to Sharia law, focusing on profit/loss-sharing. It aims to stimulate broad business activity and equitable wealth distribution. In contrast, conventional banking charges interest to maximize shareholder wealth, concentrating resources among a few. Their objectives, financing modes, investment practices, risk-sharing approaches and impact on income distribution distinguish Islamic and conventional banking.
A negative interest rate policy will influence the way lending
and borrowing rates are charged in conventional Financial markets. The objective behind such a policy is to deliberately
boost aggregate demand and output by encouraging business and trade activities, which is no different from principles of Islamic Finance. This article provide insight into how Islamic Finance can help in achieving the same objectives expect from negative interest rate.
Islamic banking is expanding from the Gulf to India. It prohibits interest and investing in businesses like alcohol or pornography. Products include profit-sharing models like mudarabah and murabahah. Regulatory issues include existing Indian banking laws not fully accommodating practices like ijarah leases. Overall, Islamic banking has potential in India given its diversity, though interest-free options already exist within the current banking system.
The document discusses issues with the current structure of Islamic banking and calls for restructuring. It notes that Islamic banking is meant to solve economic problems from a moral perspective by integrating ethics and prohibiting interest, but currently most Islamic banks operate parallel to conventional banks and rely on fixed returns rather than profit/loss sharing. This exploits depositors and does not ensure justice. The document argues that Islamic banking needs to move to purely profit/loss sharing models and discard fixed return techniques to better achieve its goals of encouraging savings, equitable distribution, and justice between parties.
A Comparative Literature Survey Of Islamic Finance And BankingScott Donald
This document provides a comprehensive literature review of Islamic finance and banking. It discusses the basic features of Islamic finance, including how it prohibits interest and focuses on profit and loss sharing. It introduces the main Islamic financing contracts (murabaha, ijara, mudarabah, musharakah) and compares them to Western instruments. It also reviews growth in the Islamic banking market and assesses performance of Islamic finance. The paper aims to provide context around regulations, challenges and opportunities in the evolving Islamic finance system.
Islamic banking prohibits interest and is guided by Islamic principles. It uses alternatives like murabaha, where the bank purchases goods for a customer and resells them at a profit, and ijarah, a leasing agreement. The key differences from conventional banking are the prohibition of interest and requirement for profit/loss sharing based on real economic activity. While Islamic banking faces challenges implementing its principles, it provides an alternative for both Muslims and non-Muslims and can help distribute credit more equitably. As the industry innovates further, its prospects for the future remain promising.
The document summarizes an international conference on Islamic finance held in Mauritius in 2011. It provides background on the principles and rationale of Islamic finance, including prohibitions on interest (riba), risk sharing, and speculative behavior. It also discusses how Islamic finance upholds social justice and requires transactions to be backed by real assets. The conference aimed to demonstrate how an economic system without interest can function, determining returns based on economic outcomes rather than an ex ante fixed rate. It also differentiated Islamic finance from conventional systems based on debt.
Islamic banking operates according to Islamic law (Sharia) and prohibits interest. It is based on profit and loss sharing. The main contracts used in Islamic banking are murabaha, ijara, salam, istisna, and musharaka. Islamic banks earn profits through trading, leasing, fees, and using other Sharia-compliant contracts instead of interest. They are overseen by a Sharia board and investments are not guaranteed to preserve the principal or provide fixed returns.
Islamic finance has its origins in medieval trade practices but began growing exponentially in the late 20th century. It is based on Sharia (Islamic law) which prohibits interest and gambling. Common Islamic financial products include partnership contracts like Mudaraba and Musharaka that are based on profit/loss sharing, cost plus financing like Murabaha, leasing contracts like Ijara, and investment certificates or bonds like Sukuk which represent partial ownership in an underlying asset. While still smaller than conventional banks, the Islamic finance industry has been growing 10-15% annually and includes both niche Islamic banks and conventional banks offering Islamic financial services.
The document provides an overview of Islamic finance and banking principles. It summarizes that Islamic banking prohibits interest and gambling, and requires profit and risk sharing between parties based on underlying business transactions or assets. It describes common Islamic finance concepts like mudarabah, musharakah, murabaha, and ijara that are used to structure financing. The document also answers frequently asked questions about Islamic deposit accounts, fees, and whether Islamic banking is only for Muslims.
Islamic banking has grown significantly in recent decades, reaching $300 billion globally. This growth has been spurred by the large Muslim population worldwide and interest from conventional banks. Islamic banking prohibits interest and gambling, and requires profit/loss sharing and sharia compliance. It offers alternatives to conventional financing through modes like joint ventures, leasing, and Islamic bonds. Major milestones in its development include the Islamic Development Bank in 1975, the AAOIFI in 1990, and the IFSB in 2002.
The document discusses the concepts of Islamic banking (Massraf) versus conventional interest-based banking. It explains that Massraf aims to unite capital, labor, and goods for socio-economic development through financial products like partnerships and asset financing, without interest. Massraf views savers as partners in investment rather than just depositors, and reinvests funds for economic and social betterment. The document also outlines the original social objectives of the first Islamic bank in Egypt in 1960, and principles of transparency, social justice and partnership that Islamic banking is based on.
The influence of faith on islamic microfinance programmesmalfofa
The document summarizes research on an Islamic microfinance program in Kosovo run by Islamic Relief. Key findings include:
1) Most borrowers said the program's adherence to Islamic principles was an important factor in their choice to borrow from START.
2) Borrowers reported that START's identity as a faith-based organization motivated them to repay their loans on time.
3) START has consistently achieved high repayment rates of around 97%, higher than other microfinance programs in Kosovo.
4) The association with faith may help reduce problems like moral hazard and adverse selection, encouraging higher repayment.
The presentation provided an overview of Islamic banking in Pakistan, including:
1) A brief history of Islamic banking in NWFP including the conversion of Bank of Khyber to an Islamic bank in 2003.
2) Details on the Shariah Supervisory Committee that oversees Islamic operations.
3) Key differences between Islamic and conventional banking, with Islamic banking prohibiting interest but allowing for asset-backed and value-adding financial activities.
Islamic banking is gaining popularity globally as an interest-free alternative to conventional banking that complies with Sharia (Islamic law). Some key financing models used in Islamic banking include Mudarabah (profit-loss sharing), Murabahah (cost-plus sale), and Ijarah (leasing). While Islamic banks operate similarly to conventional banks in mobilizing deposits and allocating funds, they prohibit interest and invest funds using Sharia-compliant contracts. The emergence of Islamic banking has provided an innovative financial system, though it faces challenges in developing new products to better compete with conventional banks.
Islamic banks differ from conventional banks in fundamental ways. Islamic banks operate according to Shariah law, which prohibits interest and requires financing to be linked to real economic transactions involving shared risk. Some key differences are that Islamic banks engage in profit and loss sharing with investors rather than guaranteed interest, require financing to be tied to a real underlying business transaction, emphasize project viability over creditworthiness, and operate deposit accounts according to Shariah principles of safekeeping rather than guaranteed returns. Lastly, a table outlines over a dozen differences in the functions, operating modes, treatment of deposits and financing, and priorities of conventional versus Islamic banks.
This document discusses Islamic alternatives to financing international trade. It begins by noting that while Muslim countries account for about 7% of global exports and imports, trade between Muslim countries is even lower at under 10%. Islamic banks have the potential to finance much more of this trade.
The document then outlines some key principles of Islamic finance, including profit and loss sharing, asset-backed financing, and linking risk and return. It discusses the emergence of modern Islamic banks since the 1960s and their growth into a global network. Islamic banks differ from conventional banks in having profit-sharing deposit contracts and integrating financial and real markets through various partnership models of financing.
This document provides an overview of Islamic banking as an alternative banking concept. It discusses three key developmental characteristics of Islamic banking:
1. Islamic financing is directly linked to real economic transactions and the goods/services market, focusing on productive projects instead of speculative activities.
2. Islamic banking integrates ethical and moral values, restricting financing to useful goods/services and establishing social funds for charity.
3. Islamic banking reconstructs the depositor relationship from interest-based lending to profit/loss sharing, aligning returns with risks taken.
The document argues these intrinsic characteristics give Islamic banking a developmental role different from conventional interest-based banking.
The search for alternatives to conventional
banking in the aftermath of the global financial
crisis trained the spotlights on Islamic banking
in many parts of the world.
- ThoughPaper by Infosys
The document provides an overview of Islamic banking in Pakistan. It defines Islamic banking as banking consistent with Shariah (Islamic law) which prohibits interest. It discusses the history and principles of Islamic banking including common financing modes like Murabaha, Mudarabah, and Ijara. It outlines the objectives of Islamic banking in Pakistan and describes some major Islamic banks in Pakistan like Meezan Bank, Al Baraka Bank, Bank Islami, and Dubai Islamic Bank. It provides details on the products and services offered by these banks.
Islamic finance has moved from being just another buzzword in last decade to an extremely popular and viable alternative in today’s interconnected financial world. Islamic asset management has been at the forefront of revolution along with Islamic Banking.
This document discusses the need for an Islamic stock market that complies with sharia law. It begins by examining stock markets from an Islamic perspective and assessing their role in an Islamic economy. It discusses key issues like gambling, risk, and options in relation to stock exchange operations and their permissibility under sharia law. It then outlines the functions of modern stock exchanges in attracting savings, directing funds to investment, matching saver and investor preferences, pricing investment risk, and facilitating information exchange. The document proposes a model for an Islamic stock exchange that identifies basic necessary elements and develops Islamically acceptable formulas for them while avoiding gambling and speculation.
Ey center-in-islamic-finance-for-africa-newBenett Momory
The document discusses Islamic finance and its potential for growth in Africa. It provides an overview of Islamic finance principles and structures like Mudaraba and Murabaha. While initially based on profit/loss sharing models, Islamic finance has diversified with many new products. It has three sectors - banking, Takaful insurance, and capital markets. The document argues Islamic finance can help fund growth in Africa as the industry and many African economies are expanding. It identifies opportunities in banking, Sukuk bonds, asset management and Takaful. The Center for Islamic Finance in Africa aims to support clients and develop the industry on the continent.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
A Comparative Literature Survey Of Islamic Finance And BankingScott Donald
This document provides a comprehensive literature review of Islamic finance and banking. It discusses the basic features of Islamic finance, including how it prohibits interest and focuses on profit and loss sharing. It introduces the main Islamic financing contracts (murabaha, ijara, mudarabah, musharakah) and compares them to Western instruments. It also reviews growth in the Islamic banking market and assesses performance of Islamic finance. The paper aims to provide context around regulations, challenges and opportunities in the evolving Islamic finance system.
Islamic banking prohibits interest and is guided by Islamic principles. It uses alternatives like murabaha, where the bank purchases goods for a customer and resells them at a profit, and ijarah, a leasing agreement. The key differences from conventional banking are the prohibition of interest and requirement for profit/loss sharing based on real economic activity. While Islamic banking faces challenges implementing its principles, it provides an alternative for both Muslims and non-Muslims and can help distribute credit more equitably. As the industry innovates further, its prospects for the future remain promising.
The document summarizes an international conference on Islamic finance held in Mauritius in 2011. It provides background on the principles and rationale of Islamic finance, including prohibitions on interest (riba), risk sharing, and speculative behavior. It also discusses how Islamic finance upholds social justice and requires transactions to be backed by real assets. The conference aimed to demonstrate how an economic system without interest can function, determining returns based on economic outcomes rather than an ex ante fixed rate. It also differentiated Islamic finance from conventional systems based on debt.
Islamic banking operates according to Islamic law (Sharia) and prohibits interest. It is based on profit and loss sharing. The main contracts used in Islamic banking are murabaha, ijara, salam, istisna, and musharaka. Islamic banks earn profits through trading, leasing, fees, and using other Sharia-compliant contracts instead of interest. They are overseen by a Sharia board and investments are not guaranteed to preserve the principal or provide fixed returns.
Islamic finance has its origins in medieval trade practices but began growing exponentially in the late 20th century. It is based on Sharia (Islamic law) which prohibits interest and gambling. Common Islamic financial products include partnership contracts like Mudaraba and Musharaka that are based on profit/loss sharing, cost plus financing like Murabaha, leasing contracts like Ijara, and investment certificates or bonds like Sukuk which represent partial ownership in an underlying asset. While still smaller than conventional banks, the Islamic finance industry has been growing 10-15% annually and includes both niche Islamic banks and conventional banks offering Islamic financial services.
The document provides an overview of Islamic finance and banking principles. It summarizes that Islamic banking prohibits interest and gambling, and requires profit and risk sharing between parties based on underlying business transactions or assets. It describes common Islamic finance concepts like mudarabah, musharakah, murabaha, and ijara that are used to structure financing. The document also answers frequently asked questions about Islamic deposit accounts, fees, and whether Islamic banking is only for Muslims.
Islamic banking has grown significantly in recent decades, reaching $300 billion globally. This growth has been spurred by the large Muslim population worldwide and interest from conventional banks. Islamic banking prohibits interest and gambling, and requires profit/loss sharing and sharia compliance. It offers alternatives to conventional financing through modes like joint ventures, leasing, and Islamic bonds. Major milestones in its development include the Islamic Development Bank in 1975, the AAOIFI in 1990, and the IFSB in 2002.
The document discusses the concepts of Islamic banking (Massraf) versus conventional interest-based banking. It explains that Massraf aims to unite capital, labor, and goods for socio-economic development through financial products like partnerships and asset financing, without interest. Massraf views savers as partners in investment rather than just depositors, and reinvests funds for economic and social betterment. The document also outlines the original social objectives of the first Islamic bank in Egypt in 1960, and principles of transparency, social justice and partnership that Islamic banking is based on.
The influence of faith on islamic microfinance programmesmalfofa
The document summarizes research on an Islamic microfinance program in Kosovo run by Islamic Relief. Key findings include:
1) Most borrowers said the program's adherence to Islamic principles was an important factor in their choice to borrow from START.
2) Borrowers reported that START's identity as a faith-based organization motivated them to repay their loans on time.
3) START has consistently achieved high repayment rates of around 97%, higher than other microfinance programs in Kosovo.
4) The association with faith may help reduce problems like moral hazard and adverse selection, encouraging higher repayment.
The presentation provided an overview of Islamic banking in Pakistan, including:
1) A brief history of Islamic banking in NWFP including the conversion of Bank of Khyber to an Islamic bank in 2003.
2) Details on the Shariah Supervisory Committee that oversees Islamic operations.
3) Key differences between Islamic and conventional banking, with Islamic banking prohibiting interest but allowing for asset-backed and value-adding financial activities.
Islamic banking is gaining popularity globally as an interest-free alternative to conventional banking that complies with Sharia (Islamic law). Some key financing models used in Islamic banking include Mudarabah (profit-loss sharing), Murabahah (cost-plus sale), and Ijarah (leasing). While Islamic banks operate similarly to conventional banks in mobilizing deposits and allocating funds, they prohibit interest and invest funds using Sharia-compliant contracts. The emergence of Islamic banking has provided an innovative financial system, though it faces challenges in developing new products to better compete with conventional banks.
Islamic banks differ from conventional banks in fundamental ways. Islamic banks operate according to Shariah law, which prohibits interest and requires financing to be linked to real economic transactions involving shared risk. Some key differences are that Islamic banks engage in profit and loss sharing with investors rather than guaranteed interest, require financing to be tied to a real underlying business transaction, emphasize project viability over creditworthiness, and operate deposit accounts according to Shariah principles of safekeeping rather than guaranteed returns. Lastly, a table outlines over a dozen differences in the functions, operating modes, treatment of deposits and financing, and priorities of conventional versus Islamic banks.
This document discusses Islamic alternatives to financing international trade. It begins by noting that while Muslim countries account for about 7% of global exports and imports, trade between Muslim countries is even lower at under 10%. Islamic banks have the potential to finance much more of this trade.
The document then outlines some key principles of Islamic finance, including profit and loss sharing, asset-backed financing, and linking risk and return. It discusses the emergence of modern Islamic banks since the 1960s and their growth into a global network. Islamic banks differ from conventional banks in having profit-sharing deposit contracts and integrating financial and real markets through various partnership models of financing.
This document provides an overview of Islamic banking as an alternative banking concept. It discusses three key developmental characteristics of Islamic banking:
1. Islamic financing is directly linked to real economic transactions and the goods/services market, focusing on productive projects instead of speculative activities.
2. Islamic banking integrates ethical and moral values, restricting financing to useful goods/services and establishing social funds for charity.
3. Islamic banking reconstructs the depositor relationship from interest-based lending to profit/loss sharing, aligning returns with risks taken.
The document argues these intrinsic characteristics give Islamic banking a developmental role different from conventional interest-based banking.
The search for alternatives to conventional
banking in the aftermath of the global financial
crisis trained the spotlights on Islamic banking
in many parts of the world.
- ThoughPaper by Infosys
The document provides an overview of Islamic banking in Pakistan. It defines Islamic banking as banking consistent with Shariah (Islamic law) which prohibits interest. It discusses the history and principles of Islamic banking including common financing modes like Murabaha, Mudarabah, and Ijara. It outlines the objectives of Islamic banking in Pakistan and describes some major Islamic banks in Pakistan like Meezan Bank, Al Baraka Bank, Bank Islami, and Dubai Islamic Bank. It provides details on the products and services offered by these banks.
Islamic finance has moved from being just another buzzword in last decade to an extremely popular and viable alternative in today’s interconnected financial world. Islamic asset management has been at the forefront of revolution along with Islamic Banking.
This document discusses the need for an Islamic stock market that complies with sharia law. It begins by examining stock markets from an Islamic perspective and assessing their role in an Islamic economy. It discusses key issues like gambling, risk, and options in relation to stock exchange operations and their permissibility under sharia law. It then outlines the functions of modern stock exchanges in attracting savings, directing funds to investment, matching saver and investor preferences, pricing investment risk, and facilitating information exchange. The document proposes a model for an Islamic stock exchange that identifies basic necessary elements and develops Islamically acceptable formulas for them while avoiding gambling and speculation.
Ey center-in-islamic-finance-for-africa-newBenett Momory
The document discusses Islamic finance and its potential for growth in Africa. It provides an overview of Islamic finance principles and structures like Mudaraba and Murabaha. While initially based on profit/loss sharing models, Islamic finance has diversified with many new products. It has three sectors - banking, Takaful insurance, and capital markets. The document argues Islamic finance can help fund growth in Africa as the industry and many African economies are expanding. It identifies opportunities in banking, Sukuk bonds, asset management and Takaful. The Center for Islamic Finance in Africa aims to support clients and develop the industry on the continent.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
1. Interest-Free Banking System
Objections, Reservations and their Evaluation
The rationale of prohibition of interest has already
been discussed. Many people, however, argue that even
if interest is prohibited in Islam. Interest-free banking is
not practicable in the modern world as an economic
system minus interest cannot be visualized. It is now
proposed to discuss and analyze these objections and
reservations.
2. Interest-Free Banking System
The interest-free banking system will not be able to bring
an optimum allocation of resources. It is argued that
since funds will be available at zero rate of interest, the
demand for money will tremendously increase’ and in the
absence of interest rates mechanism, there will he no
tool for equating demand and supply of money.
3. Interest-Free Banking System
This argument is based on a gross misconception. It is
important to perceive clearly that interest-free banking
does not mean that funds will be available free of cost to
the entrepreneur for their business requirements. Islamic
system of interest-free banking, among other things,
means that finances will he available on profit and loss
sharing basis as against predetermined rates of interest.
The rates of profit depending upon the operational
results, will, therefore, replace interest rates in allocation
of resources and will also provide a mechanism for
equating the demand and supply of money.
4. Interest-Free Banking System
The diversion of funds towards a project, will largely
depend, within the Islamic framework, on the projected rate
of profit i.e. greater the projected rate of profit, the greater
may be the supply of funds to that project. If the actual
profit is constantly lower than the projected profit, the
entrepreneur is likely to face difficulty in securing funds for
his project in future. The mechanism of profit sharing is,
therefore, likely to be more instrumental in creating financial
discipline, higher efficiency and would lead to a more
careful and realistic feasibility and evaluation of projects as
also of post-finance monitoring. This would result in not
only higher rates of profit but would also provide a better
and more efficient mechanism for allocation of resources as
compared to interest-based system. In any case, there is
not much evidence to support that rate of interest is an
efficient mechanism for allocation of resources.
5. Interest-Free Banking System
Islam discourages keeping funds idle. The Islamic system
of Zakat (Poors’ due) @ 2.5% per annum, on specified
assets, discourages the Muslims to keep the money in
bank lockers or at home, as the savings are automatically
consumed each year through the payment of Zakat.
Further, an Islamic state can also impose tax or duty on idle
assets. This will be a fiscal devise in lieu of interest. It will,
therefore, be observed that while interest may he seen as a
compensation for parting with money in the interest-based
system, the expected profit sharing, duty if imposed, and
Zakat in the Islamic system will discourage keeping the
funds idle? This, coupled with the instinct of human beings
to save for uncertain future, will ensure equilibrium in both,
the commodity market and the money market.
6. Islamic Banking
Philosophy, Development
Islamic banking, an alternate to interest-based
banking is not banking in the traditional sense of the word.
It derives its inspirations and guidance from the religious
edicts of Islam and has to conduct its operations strictly in
accordance with the directives of Shariah.
7. Islamic Banking
It is, therefore. not merely refraining from interest—based
transactions (Ahmed, 1985:18) but the objective is to make
a positive contribution to the fulfillment of socio-economic
objectives of the society in all spheres, including trade,
industry, agriculture, science, technology, employment,
benevolent sector and the environment, with special focus
on the ‘human factor’.
8. Islamic Banking
An Islamic bank is a Financial and social institution which
identifies itself with the principles of Shariah, as laid down
by the Holy Qur’an and Sunnah, as regards its objectives,
principles, practices and operations. An Islamic bank does
not normally lend money except the interest-free loan which
is termed as Qard Hasan. Islamic bank is a partner in
trade, industry and agriculture for production and
development financing. This, therefore, implies that an
Islamic bank should also share in the risk with the
entrepreneur which is in sharp contrast with interest-based
bank. Islamic banking implies zero rate of interest but not
zero rate of return as Islamic banks do not deal in money
but deal with money.
9. Areas of Operations
The areas of operations of Islamic banks can be
broadly classified as:
a) Non-fund based transactions
For all practical purposes, the Islamic banks transact all
non-fund based business and provide almost the entire
range of services like conventional banks. It is,
however, obvious that these services are provided
against appropriate fee and charges and that Islamic
banks do not involve themselves in activities like
gambling, trading of prohibited items like wine and
hoarding, etc.
10. Areas of Operations
b) Investment activities
The Islamic banks mobilize savings, investments and
other financial resources and also participate in
providing equity to entities like joint stock companies
working under the Islamic system and also provide
finance for trade, industry and agriculture. The modes
of financing being presently used broadly include:
11. Areas of Operations
I) Murabaha - Financing on cost plus basis.
2) Bai-Salam - Deterred payment sales.
3) Musharikah - A partnership.
4) Leasing.
5) Mudaraba - Venture Capital or Project finance.
12. Areas of Operations
c) Social Activities
1) Providing Qard Hasan basically to deserving persons
for non-commercial activities like marriage, education,
etc. or for small business requirements. In such cases
only the principal amount is payable, provided the
borrower is in a position to repay.
2) Collection and deduction of Zakat from shareholders,
investors and depositors as also the administration of
Zakat fund and distribution from this fund to the poor
and needy as per the guidelines provided by the Holy
Qur’an.
13. Areas of Operations
It is important to appreciate that most of the modes
of financing being practiced as a replacement of
interest do not contribute fully in achieving the socio-
economic objectives as envisaged by Islam. Further,
these modes of financing, in some cases, seem to
guarantee a fixed predetermined return and no risk is
practically shared by the financier with the
entrepreneur. It is, therefore, obvious that these types
of financing modes are not in conformity with the
requirements of Shariah.
To replace interest, there are essentially only two
modes of financing under the Islamic banking system,
namely, Qard Hasan and financing on Profit and loss
sharing basis.
14. Qard-Hasan
The Holy Qur’an says:
“If you loan to Allah, a beautiful loan, He will double it to
your (Credit)” (64:17).
“And give regular charity: And loan to Allah, a beautiful
loan” (73:20).
15. Qard-Hasan
Qard Hasanat is for the benefit of the individual and the
society at large. Islamic banks give loans to deserving
persons for their genuine consumption requirements such
as marriage, education, health care etc. Loans are also
given for setting up small business enterprises. In these
cases, only the principal amount is payable to the bank by
the end of the agreed period, provided the borrower is in a
position to repay the loan. Islam encourages Muslims to
give Qard Hasan and has termed these loans as ‘loan to
Allah’, which will be rewarded by Him.
These types of loans, however, as a matter of policy, do
not constitute a significant source of financing by Islamic
banks. However, ii in any country, an Islamic System of
Zakat is established and the Islamic State treasury starts
functioning, the requirements of Qard Hasan would
primarily he met by the treasury.
16. Financing under Profit and
Loss Sharing System
The bulk of financing under the Islamic System is
equity oriented. In this mode of financing, the risks and
losses are shared by the financer along with the
entrepreneur in the ratio of their respective capitals. The
profits are, however, shared in an agreed ratio.
Equity financing may he carried out in various forms
including participation in equity of joint stock companies
or share in partnership or in the form of temporary equity
on profit and loss sharing basis for the working capital
requirements for a specified period. As the financing
under this mode is based on profit and loss sharing.
17. Financing under Profit and
Loss Sharing System
Islamic banks pay more attention to the profitability of
the project and not merely on collaterals. As is obvious,
this mode of financing has some inherent risks and can
successfully operate in an honest and just society. If
unethical practices are followed, duplicate hooks of
accounts are maintained, and true profits are not
declared, this mode of financing is likely to suffer serious
setbacks. It is for this reason that Islamic banks have
been shy in adopting this mode of financing on a large
scale.
18. Potential of Islamic Banks
Islamic world has tremendous potentials. It has about
20% of the world population and as much of its land
mass. It produces half of the world’s oil and accounts for
40% of world’s export of raw material. Muslims are now
rediscovering their identity and the process of
establishment of Islamization of banking is gaining
momentum. The establishment of Islamic banks is a
recent phenomenon and in a short span of time, over 200
Islamic banks and financial institutions have been
established in Asia, Africa and Europe.
19. Potential of Islamic Banks
According to projections, the Muslim population of the
world by the middle of next century will be over 2600
million. Many Muslim countries are presently involved in
interest-free banking and it is visualized that by the year
2050, a significant number of Islamic countries would
switch over or would be in the process of switching over
to interest-free banking.