Islamic finance and banking

Encore extrêmement limitée il y a 30 ans, la finance islamique moderne atteindra en 2020 un encours de 4500 milliards de dollars. Si cela ne parait pas considérable à l'échelle mondiale, les banques islamiques semblent avoir bien résisté à la crise; Ainsi, les organisations financières internationales tablent sur une croissance annuelle de plus de 15% sur les 5 à 10 ans à venir. Après avoir longtemps ciblé essentiellement un marché potentiel de 1.5 milliards de musulmans, le système bancaire islamique intéresse désormais des acteurs du monde entier. La déconfiture des marchés financiers dans les pays de l'OCDE pourrait conduire les responsables politiques à considérées d'autres modèles et la finance islamique n'est pas sans attrait. Les banques islamiques sont considérées comme un refuge relativement sûr contre les turbulences des marchés financiers mondiaux, et elles incarnent un certain esprit d'équité et de justice islamique présente plusieurs caractéristiques intéressantes, notamment en matière de gestion des risques, de transparence ou de régulation. Il a fallu attendre plusieurs décennies avant que le Maroc n'adopte la finance islamique pour laquelle il a choisi le nom de participative. Depuis le démarrage des banques c'est un véritable écosystème qui a vu le jour. La nouvelle loi 103.12 définit le statut des banques participatives et précises les produits qui pourront être commercialisés. Elle dote ce nouvel écosystème d'organes de contrôle et de régulation. L'objectif de cet ouvrage est de fournir aux praticiens des banques et aux financiers d'entreprise, un guide des diverses opérations effectués dans le cadre de la finance participative, aux étudiants et aux universitaires un manuel en prise directe sur les pratiques financières des banques participatives.

Halal economy is new terms used recently as a new agenda that will be future of global economic and social. It is reflect both separated system halal product and Islamic finance to be integrated and become the new model of economy. Based on Islamic revelation knowledge, there is much proof that required Muslim conforms to both system – consumption of halal products and utilizes Islamic finance. Any basis of Muslim action should be based from Quran and Sunnah. However, since halal product
industry not bonded with Islamic finance as it is not highlighted and required on them, this lacking should be emphasize to the industry as it is not only comes from religion value, but it is a system of economy for global and many debate discussing on this particular matter. This paper will describe the proof from Islamic major sources Quran and Sunnah that urge both systems must be go together. The writer will use descriptive and analytical method from Quran and Sunnah to fortify the obligation of togetherness of halal product and Islamic finance and banking.

Melalui buku kecil ini, penulis mencoba menguraikan materi yang sangat kompleks dan lekat dengan keseharian ummat, yaitu ekonomi syariah dengan berbagai aspeknya.

Materi yang begitu luas tersebut, penulis coba suguhkan secara sederhana dalam bahasa awam. Buku kecil ini terdiri dari tiga bagian. Pertama, konsep dasar dan prinsip-prinsip ekonomi syariah. Kedua, kelembagaan keuangan syariah disertai produk-produk derivatifnya, kemudian bagian akhir memuat hukum mu’amalah perniagaan disertai contoh riil pada setiap kaidah.

The research paper aims to analyses the overview of interest-free finance activities in Turkey and Bangladesh. The history of the intellectual efforts of the Islamic economy in modern times is date back to the 1950s. The interest-free finance system emerged with the claim of being an alternative to the aim of eliminating the complexity of the irregular order in the modern financial system. Emerging Bangladesh and developing turkey were started up their interest-free financing from the decade of 1980. Bangladesh started interest-free financing from 1983 by establishing Islamic bank limited regarded as the pioneer of Islamic banking in Bangladesh. Participation banks of turkey have been growing continuously since the year they started operations in 1985. Islamic banks Limited and Participation bank of turkey hold market share 24% and 5.3 % in their banking sector, respectively. Interest-free financing as a development factor within the framework of the implementation of multilateral p...

Observers call upon Islamic financial institutions to move beyond offering merely Sharīʿah-compliant instruments toward offering more Sharīʿah-based ones. But when did these terms come into usage, and why? What precisely do people mean by ‘Sharīʿah-based’? In this article we argue that the term ‘Sharīʿah-compliant’ emerged in the 1990s and allowed Islamic finance institutions to leave behind scandals of the 1980s, presenting Islamic finance anew as a technically rational project grounded in Sharīʿah expertise. In contrast, the call for Sharīʿah-based finance became popular in the 2000s, and especially after the 2008 global financial crisis, which made systemic stability and product transparency pressing concerns. Usages of ‘Sharīʿah-based’ fall into three categories: those that stress separation from conventional finance, those that stress authenticity, and those that stress welfare. This definitional multiplicity is not a problem but rather a starting point for debate and a sign of...

Bagaimana menjadi pemimpin yang baik dengan Islamic Leadership and Your Leadership Style disampakai pada Seminar Nasional yang diselenggarakan oleh Kelompok Studi Ekonomi Islam-Kassi-Febi IAIN Bukittinggi pada tanggal 12 April 2018. Semoga bermanfaat dan ilmunya berkah....Amien

There has been a lot of media attention devoted to the Islamic prohibition of interest and how this affects financial transactions such as mortgages. Other key Islamic principles that could have a bearing on business include social justice and inclusion, honesty, protection of the weak, and a strong sense of fair play. What are the key influences on marketing ethics and what distinguishes "Islamic" marketing?

This study examines the customers' perceptions on Islamic banking in Gambia using both descriptive statistics and logistic regression methods. A sample of 150 customers from four major conventional banks and the only Islamic bank which is Arab Gambia Islamic Bank (AGIB), took part in this study. Customers' religious commitments, knowledge of Islam, awareness of Islamic banking products, are among other variables that were assessed. This study adopts descriptive statistics to compare and point out the differences between the responses of customers from the conventional banks and AGIB. The results indicated that the customers of AGIB are more religiously committed compared to the customers of the conventional banks. The findings also showed that the customers of AGIB have more knowledge of Islam and Islamic banking compared to their counterparts from the conventional banks. However, customers' awareness and usage of Islamic banking products are very poor among all the respondents. Almost all the customers agree that interest is prohibited in Islam, but they regard AGIB not to be Shariah compliant. The findings show that religious commitment, knowledgeable about Islam and Islamic banking are the most important determinants of banking with the AGIB.

Credit Rating Agency of Bangladesh Limited is one of the leading rating agencies in Bangladesh. A credit rating estimates the credit worthiness of an individual, corporation, or even a country. Credit ratings are determined by credit ratings agencies. The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies analysts.
For the completion of my BBA program I have enrolled as an intern in Credit rating Agency of Bangladesh Limited (CRAB). I have been appointed with top two analyst team of this company named Corporate Dhaka-1 and Corporate Dhaka-2. Being with the analyst team I have assisted the analyst for their information collection, database management and financial statement analysis to some extent.
Credit Rating Agency of Bangladesh Limited (CRAB) was established in 2003 at the initiative of some leading personalities in private sector and institutions of the country with the commitment to contribute to the development of the capital market by providing quality ratings and comprehensive research services. CRAB was incorporated as a public limited company in 2003 and received its Certificate for Commencement of Business in the same year.
CRAB is a member of the Association of Credit Rating Agencies in Asia (ACRAA). ACRAA, established in 2001, is a federation of domestic rating agencies of the Asian Continent- including those of Japan, Philippines, Uzbekistan, Sri Lanka, Malaysia, Indonesia, Korea, India, Pakistan, Taiwan, China, Thailand and Bangladesh, formed with support and cooperation of the Asian Development Bank (ADB).
CRAB has a Technical Collaboration Agreement with ICRA Ltd. of India, one of the leading credit rating agencies of the region. This collaboration has provided CRAB with facility for development of rating methodologies, for performing rating assignments and for training of its professionals.
It has been a great experience working in CRAB, a leading credit rating company. In this report I
have also done industry analysis on 30 different industries on the basis of CRAB’s and CRISL’s
rating for different companies of different industries.

Al-Arafah Islami Bank Ltd is one of the largest Islami Bank in Bangladesh. The bank started their journey on 18 June 1995 as a private limited company. A number of 20 dedicated Islamic personalities of Bangladesh are the architect of the bank among them Mr.A.Z.M Shamsul Alam is the founding chair man.
Al-Arafah Islami Bank Limited provides commercial and consumer banking, trade finance, and other related custody and clearing services in Bangladesh. The authorized capital of the Bank is Tk.15000.00 million and the paid up capital is Tk. 8343.24 million as on 31.12.2015. Renowned Islamic Scholars and pious businessmen of the country are the sponsors of the Bank. 100% of paid up capital is being owned by indigenous shareholders.

'Audzubillahminassyaithonirrojiim Bismillahirrahmanirrohiim Hamdan syakirin, hamdan na'imin, hamdayuafini 'amahu wa yukafi mazidah, ya rabbana lakal hamdu kama yambaghilii jalalii wajhikal kariimi wa 'adzimi sulthonik Subhanallohi wabihamdihi 'adada kholqihi, waridho nafsihi, wazinata arsihi wa midada kalimatih. Tiada terhingga puji dan syukur kami persembahkan kehadirat-Mu, di bawah limpahan rahmat dan karunia-Mu, pada saat yang berbahagia ini, kami dapat melaksanakan acara resepsi pernikahan, menyaksikan sepasang hamba-Mu yang telah mematri hubungan suci melalui ijab dan qabul. Shalawat dan salam senantiasa kami sampaikan kepada junjungan kami nabi besar Muhammad saw, keluarga, sahabat, dan pengikutnya yang selalu mengikuti sunnah-sunnahnya. Wahai Tuhan yang mempunyai kerajaan, Engkau berikan kerajaan kepada orang yang Engkau kehendaki, dan engkau cabut kerajaan dari orang yang Engkau kehendaki. Engkau muliakan orang yang Engkau kehendaki, dan Engkau hinakan orang yang Engkau kehendaki. Di tangan Engkaulah segala kebajikan. Sesungguhnya Engkau Maha Kuasa atas segala sesuatu. Engkau masukkan malam ke dalam siang dan Engkau masukkan siang kepada malam. Engkau keluarkan yang hidup dari yang mati, dan Engkau keluarkan yang

Kendala utama yang sering dihadapi dalam penilaian prestasi kerja adalah kurang baiknya job analysis (analisis pekerjaan) yang diterapkan pada suatu organisasi maupun perusahaan. Job analysis merupakan proses pengumpulan dan pemeriksaan atas aktivitas kerja pokok serta kualifikasi pekerjaan seperti keahlian, pengetahuan, kemampuan, pengalaman, serta sifat individu lainnya yang diperlukan dalam melakukan tugas atau pekerjaan. Job analysis memegang peran yang sangat vital dalam rangka perbaikan prestasi kerja yang berujung pada peningkatan prestasi kerja karyawan yang bersangkutan.

As an alternative to conventional interest-based leasing structure, Islamic finance has come with Musharakah Mutanaqisah (MMQ) modes of contract that is currently in existence. The MMQ is a form of Musharakah (partnership) in which one partner promises to buy the equity share of the other partner gradually until the title to the equity is completely transferred to him. Upon the purchase of property, the Bank will lease the usufruct of its undivided share in the property to the customer against rental payments (ijarah) through periodic installment. Each installment will contain purchase of Bank's equity and lease rental. In the middle of financing if the customer default, he has some percentage of ownership over the asset, while in the conventional leasing, the customer will not own any percentage of ownership over asset unless and until the customer made full payment until maturity period. The contemporary Muslim Scholars have consensus on the permissibility of the MMQ contract. This paper compares the MMQ model with conventional leasing structure and seeks as to which one is better. The paper concludes that the MMQ is better than conventional leasing structure for the customer and the Bank giving both several advantages.

Jordanian Islamic Banks (JIBs) are faced by an enormous challenge that is the financial Globalization and liberalization, where the financial openness nationally and internationally took various deep dimensions and effects that affected economic and financial systems worldwide.
This study aims at forming strategic response to assess the JIBs ability to take advantage of the opportunities that may be provided by financial globalization and limit its threats, through assessing the capability of Islamic banks to meet the requirements and challenges of financial globalization, in order to maximize and limit the expected opportunities and threats respectively.
      The study concluded with some results such as: the financial globalization will have negative effects on Islamic banks’ autonomy and competitive position. It will also enhance the Islamic banks’ ability to create new investment and liquidity management instruments and methods, and develop the existing ones. In addition to increasing its ability to take advantage of the openness by expanding it’s operations into new markets.
      The researcher provided some recommendations such as: the need to strengthen  the cooperation ties between JIBs and other Islamic banks abroad, and reinforce the role of young employees in required strategic change leadership in addition to moving the responsibilities of ( Shari’ah boards supervision) from the Islamic individual banks to the central banks to become (Central Shari’ah Supervision).

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately.

This is a commentary on the Malaysian Court of Appeal decision in Low Chin Meng v CIMB Islamic Bank Berhad [2015] 5 CLJ 324. In this case, a guarantor challenged legality of the Bai’ Bithaman Ajil (BBA) financing facility between a company and the bank on several grounds, two of which are discussed in the article. Firstly, that the transactions forming the financing infringed the principles of BBA and therefore invalid for non compliance with the Shariah. Secondly, that the transactions infringed section 67(1) of the Companies Act 1965 which prohibits a company, in any way, from purchasing or dealing in its shares.

As against the company, judgment had been entered and was not challenged further. As against the guarantor, the court decided that as long as the judgment against the company stood, the guarantor had no right to challenge the validity of the BBA based financing agreement involving the company and he remained liable to the bank as the guarantor.

Although the legality points raised by the guarantor do not appear to form the basis of the court's decision, these were discussed at length in the judgment. This article deals with the discussions on the legality points.

The article was first published in the Islamic Finance News magazine on 4 Nov 2015.

Fakta menunjukkan bahwa walaupun berpopulasi mayoritas muslim, namun akses warga muslim Indonesia terhadap institusi lembaga keuangan mikro syari’ah masih terbatas. Beberapa penelitian menyebutkan bahwa akses terhadap institusi ini ditentukan oleh jarak lokasi rumah ke institusi (geographical distance). Sementara itu penelitian lain juga menyebutkan bahwa religiusitas juga berperan menentukan variasi keputusan untuk menggunakan produk institusi ini bagi setiap individu. Penelitian ini didesain untuk mengestimasi probabilita akses individu muslim terhadap lembaga keuangan mikro syari’ah, Baitul Maal wat Tamwil. Penelitian dilakukan dengan menggunakan data dari survey IFLS-4 yang mencakup sekitar 29.000 responden di 13 provinsi se-Indonesia yang diaggregasi pada level 312 komunitas (desa/kelurahan) pada tahun 2007 (cross-section).

Kuisioner IFLS-4 memuat data self-reported kebiasaan warga menggunakan produk BMT jika berlokasi di dalam komunitas (akses di dalam) atau berlokasi di luar komunitas (akses ke luar) dengan jarak bervariasi. Hasil penelitian menemukan bahwa pada level komunitas, lokasi BMT amat berperan dalam menentukan akses. Variasi tipe akses ternyata juga berperan sebagai mekanisme seleksi alami bagi tipe konsumen yang akan mengakses BMT. Sebagai konsekuensinya, pihak BMT harus menentukan mekanisme layanan yang berbeda bagi konsumen dengan tipe berbeda pula. Merujuk kepada temuan kemungkinan 2 pola relasi ; subsitusi atau komplementer, antara akses BMT dengan social capital milik komunitas dan antara akses BMT dengan keberadaan LK lain, maka strategi perluasan financial inclusion dalam konteks pola kemitraan yang sustainable dan saling menguntungkan, juga harus ditentukan secara spesifik menurut lokasi komunitas.

Islamic banking has advanced in the past four decades. It has become a worldwide brand, cultured and structured industry. Nevertheless, Malaysia has witnessed low penetration of Islamic banking. Researchers documented several reasons allied with low market penetration of Islamic banking. Although Malaysian industrial sector is dominated by Small and Medium Enterprises, there is less information about small business owner's intention to adopt Islamic banking. Following the Theory of Reasoned Action, this research includes attitude, social influence and business service factors effect on intention to adopt Islamic banking. The research followed positivist research philosophy and quantitative descriptive cross-sectional study design to explicate the relationship between small business owner's attitude, social influence and business service on intention to adopt Islamic banking. 390 sample from Klang Valley region of Selangor state of Malaysia was considered for the study. Data was collected using survey method through the distribution of structured questionnaires. PLS-SEM was used to test the predictive relevance. The results indicate a strong positive relationship between attitude, social influence and business service on intention to adopt Islamic banking.

For Islamic financial institutions, data has always been a source of value creation. Those who manage their data best are those who become the most competitive, the most profitable, and who develop the right types of products and solutions for their customers, and those who manage their risks the best. In this article, Prof Dr Abderrazak Belabes discusses risk analysis in Islamic finance in the digital age which is becoming a priority for Islamic banks, insurance companies, and investment funds.

This research aims to identify the factors influencing the ability of Islamic Banks (IB) and Conventional Banks (CB) to manage liquidity risk; determine the effects of the global financial crisis on Islamic and conventional banks, and propose some mechanisms to improve resilience against liquidity risk. Univariate and panel regression analyses were used. This was made by highlighting the factors affecting Liquidity Risk Exposure (LRE) in relation to a crosscountry sample that utilises both accounting and economic data. 204 banks were investigated in the Middle East and North Africa (MENA) region, as well as SouthEastern Asian (SEA) countries during 2005-2012. Results revealed that IB recorded the highest average Liquidity Risk (LR) exposure compared to CB. There are significant differences between IB and CB banks in terms of LR factors. It is found that 92% of LR exposures are instigated by financial crises, banks' gearing, gross domestic product (GDP), off-balance sheet items, total securities held by the banks, non-earning assets divided by total assets for banks and liquid assets in CB.

The research paper aims to analyse the overview of interest-free finance activities in Turkey and Bangladesh. The history of the intellectual efforts of the Islamic economy in modern times dates back to the 1950s. The interest-free finance system emerged with the claim of being an alternative to the aim of eliminating the complexity of the irregular order in the modern financial system. Emerging Bangladesh and developing turkey were started up their interest-free financing from the decade of 1980. Bangladesh started interest-free financing from 1983 by establishing Islamic bank limited regarded as the pioneer of Islamic banking in Bangladesh. Participation banks of turkey have been growing continuously since the year they started operations in 1985. Islamic banks Limited and Participation bank of turkey hold market share 24% and 5.3 % in their banking sector, respectively. Interest-free financing as a development factor within the framework of the implementation of multilateral projects that contributes to the both country's economy. This research paper considers qualitative and analytical research based on the secondary data collection process. Improving the regulation of financial organizations in interest-free financing that keeps contributing to the development of infrastructure of Islamic finance activities for both Turkey and Bangladesh.

The article analyzes the evolution of the Islamic financing modes whose understanding is essential to understand the current situation of the Islamic financial practice. The history of Islamic banks was characterized by the gradual increase in the use of "debt-based instruments" and the decline in the use of "asset-based instruments". Determining the causes of this transfer in the islamic banking practice therefore facilitates the proposal for a reorientation of the practice. This proposal is based on the usefulness of each mode of financing, its roles and the purposes (maqasid) that it can achieve and serve.

L'article analyse l'évolution des modes de financement islamique dont la compréhension est indispensable pour comprendre la situation actuelle de la pratique financière islamique. L'histoire des banques islamiques se caractérisait par l'abondance progressive de l'usage des "debt-based instruments" et de la diminution de l'usage des "asset-based instruments". La détermination des causes de ce virement dans la pratique facilite donc la proposition d'une réorientation de la pratique. Cette proposition se base sur l'utilité de chaque mode de financement, son rôle et les finalités (maqasid) qu'il peut réaliser et servir.

Cahiers de la finance islamique n°11, pp.94-104.

Global cooperation for poverty alleviation and development issues are among the United Nations Sustainable Development Goals (2016-2030) and have recently been the subject of frequent academic discussion. Today's poverty has become like a big barrier to economic growth and development. Especially developing and under-developing countries have been facing this problem frequently. Poverty is the main problem of sustainable human development. Islamic microfinance is considered to be the most appropriate form of current micro-credit that promises the same benefits based on the Sharia. In addition, disseminating smaller consistent financial products than existing funding alternatives such as Islamic microfinance to increase social awareness and facilitate access to financial instruments in order to ensure social development with a social purpose. Instead of credit, it includes Islamic microfinance, trading activities with murabahah, equity financing with mudarabah and musharakah, savings with kardh, money transfer system with zakat and charity, and insurance with takaful. Islamic microfinance practices have emerged as an alternative way for poverty alleviation by ensuring the compliance of financial transactions with Islamic law.

The research paper aims to find out and analyses the contribution of the Islamic Microfinance to the social economy. For all that, this paper will also asses the strength, weakness, opportunity, and threat (SWOT) analysis of Islamic macro-finance. This research paper conducts according to the exploratory, descriptive, and case study-oriented research method in relation to find out Islamic microfinance activities into the market. Data collection method provides qualitative data collection based on secondary data processing. The secondary data collection is mainly followed by using different papers, studies, websites, official reports, government report, and other sources. Islamic Microfinance has shown as a potential alternative way for reducing poverty level from the society by ensuring social awareness programs and implementing Islamic microfinance opportunities, which reveal the contribution of the Islamic Microfinance to the social economy. Until now, the focus for Islamic microfinance practitioners, microfinance has been very similar to traditional debt financing instruments. In Islamic microfinance applications, in addition to the group-based method, individual financing method is also used to provide members with financing.