Islamic banking is not a totally new concept in the world. However, there is still a dearth of basic as well advance level literature on different aspects of Islamic banking. This monograph is based on extensive literature review, discussions with eminent scholars and discussion forums on different aspects of Islamic banking. We have tried to cover each related topic in easy an understanding way, so that most of readers can benefit from it. A general concept is added for conventional banking, and detailed concepts and practical implications of Islamic banking are included. We have used terms Islamic banking, shariyya banking, Islamic bank and shariya bank simultaneously, with an operational definition of “a banking system operating on the principles of Islamic economy and teachings.”
A comprehensive overview of key developments in Islamic banking In Islamic Banking in Indonesia, renowned economist Dr. Rifki Ismal explores current issues in Islamic banking and financial products with a particular focus on the danger of liquidity risk in Indonesia. It approaches liquidity risk from the conventional perspective of international banking standards, as well as from the Islamic banking perspective. Dr. Ismal also covers the issues of asset-liability balancing, liquidity risk index, organizational structures for managing liquidity, industrial analysis, withdrawal risk, bankruptcy risk, moral hazard risk, and market risk. Compiling all the latest academic research on liquidity risk and other risks in Islamic banking, the book provides a theoretical foundation for managing risk that will is highly useful for researchers on Islamic banking and practitioners and academics. Written by a renowned expert on Islamic banking who works on monetary policy at the central bank of Indonesia Covers the latest developments in Islamic banking, particularly liquidity risk, for a rapidly expanding market Ideal for European and American readers, in addition to Asian readers, who need a fuller understanding of Islamic banking institutions, markets, and products With the latest academic research and the expertise of a leading practitioner in Islamic banking, this book offers in-depth coverage of the most pressing issues in the field.
Islamic banking is a banking system that is based on the principles or rules of Islamic law (also known as Sharia, or Shariah) and guided by Islamic economics. A banking system observed the principles lay down by Islamic Shariah. Islamic banking is exceedingly swelling not only in Muslims but also in non Muslims countries. This Book focuses on the growth and market share of Islamic banking in non Muslims countries where a preponderance Muslim population is living. This book also highlights the Muslims population growth rate and its relation with growth rate of Islamic banking in non Muslims countries furthermore its help to find out ratiocinate of its rapid growth in these countries. It also focuses to find out the factors which have prominently stabilized Islamic banking even in the crisis specifically in those countries.
There has been a considerably large scale growth in Islamic finance & banking in Muslim countries around the world and especially in Pakistan during the last twenty years, mainly to ensure the delivery of social & economic development through financial services in accordance with Islamic teachings. The study achieves its objectives by measuring the degree of customer satisfaction of Islamic banking customers, investigating the reasons to identify why customers deal with Islamic banks, and further making recommendations to conceive Islamic banking products in accordance with customers preferences. It also brings different shades of opinion to the fore on the subject such as profile and banking habits of Islamic banking customers, their awareness, usage, perceived importance and degree of satisfaction with the current products and services offered by the Islamic banking sector in Pakistan.
The first comprehensive guide to Islamic financial markets Based on the course taught at the International Islamic University Malaysia, this is the first book on Islamic finance to focus exclusively on money and capital markets. Covering basic concepts as well as current practices in Islamic financial markets, the book features case studies from real markets. It outlines the theory of money in terms of value, supply, and demand, while explaining the Islamic capital markets in terms of classifications, types of operations, valuations of securities, Islamic unit trust, ETFs, Islamic stock broking, and much more. Written by experts from the International Islamic University Malaysia, the leading organisation in research in Islamic finance The first guide to Islamic finance focused solely on money and capital markets An excellent introduction to money market principles for students in Islamic banking and finance, as well as researchers and current practitioners, Fundamentals of Islamic Money and Capital Markets is a vital resource on the subject.
A detailed look at the fast-growing field of Islamic finance and banking The guiding principle of Islamic finance has existed throughout Islamic history, yet modern Islamic banking has been around for a relatively short period of time. Author Amr Mohamed El Tiby is an expert in this field, and with this new book, he reveals how you can benefit from the use of Islamic banking strategies in your financial endeavors. Engaging and accessible, Islamic Banking shows the impact this approach has made on conventional banking since the 1950s, and why it's such a big player in the current market. It offers a unique look at various aspects of this field, including the salient features of Islamic banking that distinguishes it from non-Islamic banking, the development of the regulatory bodies and supervisory agencies that support the Islamic banking system, and much more. It also explores the nature of risk in Islamic banking and the issues of capital adequacy, corporate governance, transparency, and risk associated with Islamic banking. Discusses the history and development of Islamic finance Offers straightforward strategies for implementing Islamic finance into your business activities Sheds light on the effect of the global economic crisis on Islamic banks versus conventional banks Filled with in-depth insights and expert advice, this detailed analysis of Islamic finance will help you gain a firm understanding of how effective this proven approach can be.
A complete, detailed guide to modern Islamic banking fundamentals Modern Islamic Bankingprovides a comprehensive, up-to-the-minute guide to the products, processes and legal doctrines underlying Islamic banking. Written by a pioneering practitioner in the field, this book provides thorough guidance and expert-level perspective on the principles and applications of this alternative-banking model. You'll begin by learning the fundamentals, vocabulary and key concepts of Islamic banking, then explore key products including istisna'a, murabaha, musharaka, ijara, sukuk, and salam. Coverage then moves into practical applications of Islamic products to a variety of contexts including asset management, treasury, risk management, venture capital, SME finance, micro-finance and taxation. Regulatory frameworks are discussed in detail, including extensive coverage of post-financial crisis Islamic bank valuation. Islamic banking has experienced rapid growth over the past decade, a trend that is set to continue given the sector's successful weathering of the financial crisis. This book brings you up to speed on this alternative way of banking, and shows you how it applies within your own current practices. Understand the principles of Islamic banking and finance Learn the products, vocabulary and key concepts of the field Consider the applications in a variety of financial contexts Explore the regulatory frameworks and valuation of Islamic banks Islamic banking practices differ from Western banking in fundamental ways – it's these differences that shielded the sector during the global crisis, but they also require practitioners to understand a whole new set of rules, products and practices. Modern Islamic Banking gives you a solid understanding of the fundamentals and expert insight into modern practical applications.
The ongoing turbulence in the global financial markets has drawn attention to an alternative system of financial intermediation: Islamic banking and finance. This is now one of the fastest growing sectors within the market place and has, so far, remained on the sidelines of this unrest. Since the inception of Islamic banking thirty years ago the number and reach of Islamic financial institutions worldwide has risen significantly. Institutions offering Islamic financial services constitute a significant and growing share of the financial system in several countries, and market participants everywhere are joining the race to study and be a part of this emerging financial system. The Islamic Banking and Finance Workbook is a one-of-a-kind workbook on the topic, enabling readers to test their understanding of Islamic banking and finance concepts. Although suitable as a standalone learning tool, the book is designed to test the information covered in the companion book, Introduction to Islamic Finance and Banking, and covers the fundamentals of Sharia'a law, the Islamic contracts interpretations and definitions, Murabaha, Mudaraba, Musharaka, Istisna'a, Salam and Ijara modes of finance, Takaful and much more. Emphasis is placed on mini case studies, multiple choice questions and tests of the basic concepts. It also includes a full answer key and brief chapter summaries, as well as learning objectives. The Islamic Banking and Finance Workbook is an essential learning tool for students and practitioners who want to test their knowledge of the rapidly growing world of Islamic banking and finance.
The book outlines origins of Islamic economics Principles in Shari’a, covering its characteristics, economic problem, and government intervention, public versus private property, work ethics, Al-Hisba and social justice. Theories of the demand for money in western economies are presented followed by an analysis of the meaning, nature, characteristics, and role of money in Islam. Factors affecting the demand for money in an Islamic economy are emphasized. The meaning and features of Riba, its types and economic consequences are discussed. Thorough analyses of the objectives of Islamic banking in theory and practice, types and sources of deposits, and various forms of Riba-free financing operations are in order. Monetary and prudential control in both systems is considered emphasizing religious supervisory responsibility and the Central Bank of Kuwait instructions. Islamic money and capital market is acknowledged by dwelling on sukuk instruments. Transition in practice is analyzed shedding light on Kuwait experience and the macro and microeconomic efficiencies of Islamic model compared with conventional one.
Islamic Banking unaffected by global financial crisis,The development of Islamic Banking in the past two decades has been remarkable, particularly in progress and stability of the underdeveloped countries. This book aims to clarify the issue of Islamic Banking as well as describe the Islamic banking system and how it is implemented in some selected countries; in addition it evaluates the performance and efficiency of these banks to know its impacts on economic and social development. Islamic banking has achieved great success in proving the theory of Islamic financing as they are to keep pace with the times and respond to the funding needs required by the contemporary economic life. The Islamic banks have proved that the right of Islamic banking can keep up with the latest developments in the world of finance, economy, characterized by the benefits of genuine interest-based financing and serve as a basis for the domestic financial system and global degree of professional banking and flexibility and to cover the financing needs of contemporary society.
relations result in customer loyalty. However, making these relationships successful in achieving this aim is difficult. Liberalization efforts by the Malaysian government has allowed for foreign equity participation for Islamic banking and Islamic insurance, making competition among banks in Malaysia offering Islamic banking services more intense. The primary objective of this study is to examine how corporate image, service quality, and customer perceived value affect relationship quality and subsequently switching intention among Islamic banking customers in a dual banking environment.Therefore, a framework was developed to examine in a single model the relationship between relationship quality and switching intention among Islamic banking customers in Malaysia. Structural equation modeling was conducted to test all hypotheses in the study. Findings of this study show perceived value to be highly associated with relationship quality while corporate image and service quality did not influence relationship quality.
Islamic banking and finance is a fast growing industry which is developing persistently and has been competitive to achieve and maintain its growth momentum even in the time of great recession. Islamic banking and finance industry came into being with profit and loss sharing investment by Egypt's Mit Ghamr Saving Bank in 1963. Development of Islamic banking started after 1970 with new investment techniques, strategies and product development. Principles of Islamic banking is based on Islamic laws known as Shari`ah consisting three principles in regard to investment, banking or financial dealings which are prohibition of Riba (Interest), Gharar (uncertainty) Maysir (Speculation) and Unethical business. Islamic banking and finance in Australia is seen as a fast growing market since Westpac adopted their services in banking. It has great potential for development given Australia has abundant resources its strategic location, strong trade links and fast growing region in the world. Australia has a potential to facilitate further innovation and competition in the wholesale and retail banking sectors and to support Australian government's commitment towards credit market diversification.
The Islamic banking and finance industry has captured substantial interest in the financial market particularly in the aftermath of the 2007/2008 global financial crisis. Due to its increased presence in the global financial scenario, the Islamic banking and finance industry is no longer seen as peripheral to its conventional counterpart, but currently is playing a complementary role that has high potential to be developed further as a viable alternative to the conventional financial system. Currently, the Islamic finance industry has been growing rapidly worldwide. From the theoretical perspective, Islamic banking is different from the conventional banking. The Islamic banks are bounded to some basic principles outlined in the Holy Quran. In particular, the Islamic banking transactions must be free from interest (riba), and contractual uncertainties (gharar and maysir), adherence to risk- and profit-sharing, promoting of halal investment that enhances society, and must be asset-based. Islamic banking is dedicated to the elimination of the payment and receipt of interests in all forms. As interest rate is prohibited, Islamic banking introduces profit- and loss-sharing mechansm.
This book is a comparative analysis between conventional and Islamic banking system on deposit insurance scheme. First, it discusses the historical development of deposit insurance. The book examines the practices in Malaysia in relation to deposit insurance, which include its role in banking and financial stability. It discusses the application of deposit insurance in conventional and Islamic banking as well as its coverage limits and types of eligible deposits accounts. It further highlights the concept of guarantee (kafalah) as well as liability of entrepreneur to loss and damage. It essentially elucidates on the similarities and dissimilarities between conventional and Islamic deposit insurance, and deposits accounts operations of conventional and Islamic banking. Hence, it examines and analyses the principles of conventional and Islamic deposit insurance in term of concepts and operations. Finally, it provides suggestions for alternative Islamic banking deposit insurance to the existing conventional one. The book will be useful for students, scholars, researchers, professionals who are willing to update their knowledge on the conventional and Islamic banking system.
The Term Islamic Banking is now not remained new in Pakistan. Islamic Banking has gained much recognition in Pakistan Financial Market. The conventional banking sector is the major competitor of Islamic banking. Higher competition demands Islamic banks to be more customers oriented and show superiority in their products and service. In order to acquire major market share, Islamic banks must consider their customers approach, satisfaction and awareness level towards it. Among issues covered in the study were customer’s understandings of Islamic banking in Pakistan and also the awareness, usage and satisfaction level with various Islamic banking products. It further analyzes the bank selection criteria of customers and service quality of bank. The study reveals that there is significant relationship between customers’ awareness of Islamic bank products/services and their education level and also there is relationship between customers’ satisfaction with various products/service and their length of relationship with bank.