Continuous growth in Islamic finance calls for an in-depth study of the framework in which the monetary policy maker (i.e., the central bank) performs its functions. Central banks in Muslim countries are using various instruments for monetary policy purpose including interest rate. As a result, Islamic Financial Institutions (IFIs) are facing issues in benchmarking the price of financial instruments. Acceptable solution to benchmarking lies in the presence of a real economic activity in the base of any proposal and its feasibility for business performance when put against conventional banking. This paper presents empirical evidence of statistical equivalence of nominal GDP growth rate and official interest rate for 'advanced,' 'all,' and some Muslim countries. We propose nominal GDP growth rate as benchmark for pricing domestic financial transactions of IFIs as well as for pricing external bilateral/multilateral loans. The paper also suggests nominal income targeting as monetary policy regime and provides a liquidity management mechanism for banking system in Islamic financial environment.
Continuous growth in Islamic finance calls for an in-depth study of the framework in which the monetary policy maker (i.e., the central bank) performs its functions.
This book draws on a range of theoretical foundations, approaches and management practices that are culturally and jurisdictionally appropriate in several Muslim countries. As such, it contributes to an emerging specialism in comparative management and leadership theory that is oriented towards a broader and more diverse set of perspectives, particularly from the non-Western world, given that the importance of values, ethics, and culture have recently been recognized as a key contributing factor to management knowledge development. The author offers an in-depth overview of the Islamic management strategies that have successfully been implemented in selected Malaysian banking and non-banking financial institutions and then outlines how the application of such strategies leads to increased integrity, efficiency and performance. The book is divided into three parts. The first part deals with the introduction, historical background and methods used in collection of data. The second part consists of a range of real-world case studies, while part three deals with the approaches to be used in the teaching of these cases followed by conclusions and recommendations. These cases studies map the strategic aspects of organizational structure and illustrate the motives that influence Malaysian managers' choices in seeking specific responses to the situations at hand, that are in harmony with the traditions in Islamic inquiry. As such, management scholars can build a foundation for conceptual and theoretical propositions relevant to Muslim culture and environment that will have practical significance. The book provides a wealth of information and enables researchers not only to identify the determinants of knowledge structure and its context but also the evolution of practice.
This book draws on a range of theoretical foundations, approaches and management practices that are culturally and jurisdictionally appropriate in several Muslim countries.
Islamic finance is emerging as a rapidly growing part of the financial sector in the Islamic and recently in non-Islamic countries. Risk management is a crucial element in Islamic banking due to the nature of its operations. This paper stud ies the risk management system of the Islamic banks operating in Lebanon. Partic ularly, a survey was conducted to assess the status of all Islamic banks in Leba non. A statistical approach was followed to evaluate the degree of adoption of t he recommendations set by the Islamic Financial Services Board (IFSB) and the Ba sel Committee on Banking Supervision (BCBS). Those recommendations include the princ iples related to the responsibilities of the board of directors in formulating a clear and comprehensive risk management strategy. They also tackle the tools us ed by these banks to identify, monitor, control, and mitigate the main types of risks. The data collected showed that the degree of adoption of these principles varies from one bank to another; however, in general, the Islamic banking indus try in Lebanon lacks important regulations and procedures related to risk manage ment.
Islamic finance is emerging as a rapidly growing part of the financial sector in the Islamic and recently in non-Islamic countries. Risk management is a crucial element in Islamic banking due to the nature of its operations.
The study investigatesthe impact of the 2008 global financial crisis on the banking sector within six Islamic countries by examining how Islamic banks fared compared to conventional banks.Two Islamic and two conventional banks were selected across six different Islamic countries and compared via eight different performance metrics. To eliminate bias, countries were selected from disparate political, geographical, and ideological backgrounds. The results were: i. Islamic banks in G20 countries performed better than conventional banks, while the opposite was true in non-G20 countries; ii. Islamic banks in constitutionally Islamic countries performed better than conventional banks; and iii. Islamic banks in authoritative regimes outperformed conventional banks, while the opposite was true for democratic countries. Results indicate that the conservative nature of Islamic banking was instrumental in protecting them from the downturn that the conventional banks experienced during the financial crisis.
The study investigatesthe impact of the 2008 global financial crisis on the banking sector within six Islamic countries by examining how Islamic banks fared compared to conventional banks.Two Islamic and two conventional banks were selected ...
Liquidity position and liquidity risk of Islamic financial institutions has been changing over time. Using three measures of liquidity this paper analyses the state of liquidity and the risk management practices of Islamic banks across countries and regions and compares them with conventional banks. It calls for creating new instruments and infrastructure for liquidity risk management and proposes fresh approaches to manage this risk.
Liquidity position and liquidity risk of Islamic financial institutions has been changing over time.
From an Islamic perspective, although the ownership of wealth is with God, humans are gifted with wealth to manage it with the objective of benefiting the human society. Such guidance means that wealth management is a process involving the accumulation, generation, purification, preservation and distribution of wealth, all to be conducted carefully in permissible ways. This book is the first to lay out a coherent framework on how wealth management should be conducted in compliance with guiding principles from edicts of a major world religion.
This book is the first to lay out a coherent framework on how wealth management should be conducted in compliance with guiding principles from edicts of a major world religion.
