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Introduction To Islamic Banking And Finance: An Economic Analysis

This book, Introduction to Islamic Banking and Finance: An Economic Analysis, covers the basic principles of Islamic economics and finance. It discusses both the theory of Islamic economics and finance as well as the applications in the design of instruments of finance as well as Islamic financial institutions. The book enables its readers to gain an understanding of the structures and operations of Islamic banking, Islamic capital market investments, risk management, and taxation for Islamic banking contracts.The book sets forth the following objectives:

This book, Introduction to Islamic Banking and Finance: An Economic Analysis, covers the basic principles of Islamic economics and finance.

Risk Management in Islamic Banking

A Case Study in Lebanon

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.

Financial Management Analysis of Islamic and Conventional Banking in Selected Countries

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 ...

The Stability of Islamic Finance

Creating a Resilient Financial Environment for a Secure Future

The Stability of Islamic Finance main focus is on the question of the sources of financial instability which seems inherent in the conventional system. As a core component of this focus, the book will consider episodes of turbulence and instability in a historical context recalling the occurrence of such events from mid-19th century to the present. It will present various theoretical explanations along with solutions and alternative financial systems that avoid instability provided by various scholars dating back to mid-19th century to present. The book then will present and discuss the architecture of an Islamic financial system and show that at its core, this system shares many characteristics of an stable financial system proposed by Western scholars throughout history to avoid the inherent instability of the present dominant system. Particular emphasis will be placed on the present financial crisis and its causes as well the financial crisis of the 1997 in Southeast Asia, Russia, and Latin America relating these episodes to the fundamental features of the dominant system. The debt crisis of the low income countries will also be part of this discussion. It will then argue that these crises could be mitigated under an Islamic system or any other system with similar architecture.

It will then argue that these crises could be mitigated under an Islamic system or any other system with similar architecture. This new book by a group of four Western-trained Islamic economists is greatly welcomed.

Monetary Operations and Islamic Banking in the GCC

Challenges and Options

The assessment provides evidence of market segmentation across Islamic and conventional banks in the Gulf Cooperation Council (GCC), leading to excess liquidity, and an uneven playing field for Islamic banks that might affect their growth. Liquidiy management has been a long-standing concern in the global Islamic finance industry as there is a general lack of Shari’ah compliant instruments than can serve as high-quality short-term liquid assets. The degree of segmentation and bank behavior varies across countries depending on Shari’ah permissibility and the availability of Shari’ah-compliant instruments. A partial response would be to support efforts to build Islamic liquid interbank and money markets, which are crucial for monetary policy transmission through the Islamic financial system.This can be achieved, to a large extent, by deepening Islamic government securities and developing Shari’ah-compliant money market instruments.

The assessment provides evidence of market segmentation across Islamic and conventional banks in the Gulf Cooperation Council (GCC), leading to excess liquidity, and an uneven playing field for Islamic banks that might affect their growth.

Risk Management for Islamic Banks

Recent Developments from Asia and the Middle East

Gain insight into the unique risk management challenges within the Islamic banking system Risk Management for Islamic Banks: Recent Developments from Asia and the Middle East analyzes risk management strategies in Islamic banking, presented from the perspectives of different banking institutions. Using comprehensive global case studies, the book details the risks involving various banking institutions in Indonesia, Malaysia, UAE, Bahrain, Pakistan, and Saudi Arabia, pointing out the different management strategies that arise as a result of Islamic banking practices. Readers gain insight into risk management as a comprehensive system, and a process of interlinked continuous cycles that integrate into every business activity within Islamic banks. The unique processes inherent in Islamic banking bring about complex risks not experienced by traditional banks. From Shariah compliance, to equity participation contracts, to complicated sale contracts, Islamic banks face unique market risks. Risk Management for Islamic Banks covers the creation of an appropriate risk management environment, as well as a stage-based implementation strategy that includes risk identification, measurement, mitigation, monitoring, controlling, and reporting. The book begins with a discussion of the philosophy of risk management, then delves deeper into the issue with topics like: Risk management as an integrated system The history, framework, and process of risk management in Islamic banking Financing, operational, investment, and market risk Shariah compliance and associated risk The book also discusses the future potential and challenges of Islamic banking, and outlines the risk management pathway. As an examination of the wisdom, knowledge, and ideal practice of Islamic banking, Risk Management for Islamic Banks contains valuable insights for those active in the Islamic market.

The efforts by four budding scholars to write on this topic are indeed laudable. This book discusses risk management for Islamic banks in a comprehensive manner and yet makes it easy for readers to understand.

PERILAKU ORGANISASI

Pada dasarnya, budaya organisasi merupakan pola dasar yang diterima oleh organisasi untuk bertindak dan memecahkan masalah, membentuk karyawan yang mampu beradaptasi dengan lingkungan dan mempersatukan anggota-anggota organisasi. Untuk itu harus diajarkan kepada anggota termasuk anggota yang baru sebagai suatu cara yang benar dalam mengkaji, berpikir dan merasakan masalah yang dihadapi. Budaya organisasi merupakan nilai yang memiliki karakteristik tertentu karena setiap organisasi memiliki perbedaan mendasar antara satu organisasi dengan organisasi lainnya. Oleh karena itu budaya organisasi tidak akan sama antara satu organisasi dengan organisasi lainnya. Perbedaan tersebut mengindikasikan bahwa budaya organisasi cenderung dibentuk oleh karakter manusia yang ada didalam organisasi, terutama dari orang-orang yang mendirikan organisasi dan selanjutnya berkembang sesuai dengan perubahan yang terjadi setiap saat dalam setiap organisasi. Senada dengan ini, komitmen organisasi juga penting sebagai suatu kondisi yang dirasakan oleh karyawan yang dapat menimbulkan perilaku positif yang kuat terhadap organisasi kerja yang dimilikinya. Beberapa karakteristik yang bisa digunakan sebagai pedoman telaah komitmen kerja, yaitu sdanya keyakinan yang kuat dan penerimaan tujuan serta nilai-nilai yang dimiliki organisasi kerja, terdapatnya keinginan untuk mempertahankan diri agar tetap dapat menjadi anggota organisasi tersebut, serta adanya kemauan untuk berusaha keras sebagai bagian dari organisasi kerja.

Senada dengan ini, komitmen organisasi juga penting sebagai suatu kondisi yang dirasakan oleh karyawan yang dapat menimbulkan perilaku positif yang kuat terhadap organisasi kerja yang dimilikinya.