Islamic banking and finance Vol. III, Current islamic finance

Cover......Page 1
Brief Contents......Page 7
Contents......Page 9
Preface......Page 11
About the Authors......Page 13
Acknowledgements......Page 15
Teaching & Learning Support Resources......Page 16
Part 1: Overview of Islamic Economics and Finance......Page 17
  1.1 Introduction......Page 18
  1.3 Classification of Worldviews......Page 19
  1.4 Elements of Worldview and Their Implications on Thoughts and Actions......Page 20
  1.5 The Islamic Worldview......Page 23
  1.6 Islamic Law - Shari\'ah......Page 25
  1.7 Differences between Islamic and Other Worldviews......Page 31
  Key Terms and Concepts......Page 33
  References and Further Readings......Page 34
  2.1 Introduction......Page 35
  2.2 What is Economics?......Page 36
  2.3 Types of Economic Systems......Page 37
  2.4 Islamic Economic Theory......Page 40
  2.5 Comparison between Neoclassical and Islamic Economics Theory......Page 46
  2.6 Islamic Economic System......Page 50
  Questions......Page 55
  References and Further Readings......Page 56
  3.1 Introduction......Page 57
  3.2 What is a Financial System and Who Uses It?......Page 58
  3.4 Islamic Financial System......Page 59
  3.5 Components of Financial Systems......Page 61
  Summary......Page 80
  Questions......Page 81
  References and Further Readings......Page 82
Part 2: Islamic Financial Institutions, Markets and Instruments......Page 83
  4.1 Introduction......Page 84
  4.3 Elements of a Valid Contract......Page 85
  4.4 Legal Consequences of Contracts......Page 86
  4.5 Classification of Contracts......Page 87
  Summary......Page 105
  References and Further Readings......Page 106
  5.1 Introduction......Page 107
  5.2 Bonds: Types, Features and Ratings......Page 108
  5.3 Sukuk......Page 109
  5.4 Structuring Sukuk: Types and Features......Page 112
  5.5 Rating of Bonds and Sukuk......Page 124
  5.6 Development and Contemporary Issues Related to Sukuk......Page 127
  5.7 Derivatives......Page 130
  5.8 Islamic Derivatives......Page 133
  Summary......Page 136
  Key Terms and Concepts......Page 137
  References and Further Readings......Page 138
  6.2 The Origin of Modern Banking......Page 140
  6.3 Nature and Types of Banking......Page 142
  6.4 Evolution of Islamic Banking......Page 145
  6.5 Emergence and Growth of Islamic Banking in Different Regions......Page 150
  6.6 Operating Structures of Islamic Banking and Finance Industry......Page 161
  Summary......Page 169
  Key Terms and Concepts......Page 170
  References and Further Readings......Page 171
  7.1 Introduction......Page 172
  7.2 Brief History of Insurance......Page 173
  7.3 Features and Types of Insurance......Page 174
  7.5 Principles of Takaful......Page 175
  7.6 Major Differences between Takaful and Insurance......Page 178
  7.7 Types of Takaful Products......Page 181
  7.8 Models of Takaful Governance......Page 182
  7.9 Dealing with Underwriting Surplus and Other Technical Provisions......Page 188
  7.10 Reinsurance and Retakaful......Page 190
  7.11 Future Prospects and Challenges of Takaful......Page 192
  Key Terms and Concepts......Page 193
  References and Further Readings......Page 194
  8.1 Introduction......Page 195
  8.3 Development of Microfinancing......Page 196
  8.4 Role and Objectives of Islamic Microfinance......Page 198
  8.5 Development and Evolution of Islamic Microfinancing......Page 199
  8.6 Components of Islamic Microfinance......Page 200
  8.7 Islamic Microfinance Models......Page 202
  8.8 Poverty Alleviation Strategies......Page 205
  8.9 Similarities and Differences between Conventional and Islamic Microfinance......Page 207
  8.10 Microfinance Activities in Different Regions......Page 209
  Summary......Page 211
  Questions......Page 212
  References and Further Readings......Page 213
Part 3: Management and Governance of Financial Institutions and Markets......Page 215
  9.1 Introduction......Page 216
  9.2 Users of IFI Reports and Their Demand for Information......Page 217
  9.3 Basic Financial Statements of Conventional and Islamic Banks......Page 220
  9.4 Determining Returns for Assets and Liabilities......Page 236
  9.5 Evaluating the Performance of Islamic Banks......Page 246
  Key Terms and Concepts......Page 257
  Case Study......Page 258
  References and Further Readings......Page 260
  10.1 Introduction......Page 261
  10.2 Asset-Liability Management (ALM)......Page 262
  10.3 Structure and Management of Islamic Bank Liabilities......Page 263
  10.4 Structure and Management of Islamic Bank Assets......Page 268
  10.5 Liquidity Management......Page 269
  10.6 Capital Adequacy Management......Page 271
  10.7 Off Balance Sheet Management......Page 281
  Summary......Page 284
  Questions......Page 285
  References and Further Readings......Page 286
  11.1 Introduction......Page 287
  11.2 What is Risk?......Page 288
  11.4 Islamic Perspective of Risk......Page 289
  11.5 Classification of Risks and Risk Factors in Financial Institutions......Page 290
  11.6 Unique Features of Islamic Financial Institutions and Implications on Risks......Page 293
  11.7 Risk Management......Page 299
  Summary......Page 307
  Questions......Page 308
  References and Further Readings......Page 309
  12.1 Introduction......Page 310
  12.2 The Legal Framework......Page 311
  12.3 Regulatory Framework......Page 312
  12.4 Supervision......Page 321
  Summary......Page 322
  Questions......Page 323
  References and Further Readings......Page 324
Glossary......Page 325
Index......Page 344