INCEIF Knowledge Repository (INCEIF University)
Not a member yet
1768 research outputs found
Sort by
Bank financing and risk: the case of Islamic banks
No full textThe paper assesses the risk implications of rapid Islamic financing growth after the Global Financial crisis and whether financing - risk relations are more reflective of large Islamic banks. Employing a panel regression methodology and a sample of 72 Islamic banks from 14 countries over the period 2010-2019, our analysis indicates that Islamic financing growth does lead to credit risk deterioration up to two years ahead. We note further that Islamic banks are "too small to succeed" in that the risk effect of financing growth is more apparent for small Islamic banks. But, once an Islamic bank reaches a certain size threshold, it demonstrates ability to manage and mitigate credit risk arising from its financing activities. Based on these results, we conclude that Islamic banks need to be bigger
Understanding blockchain technology in Islamic social finance and its opportunities in metaverse
No full textThe use of blockchain technology in financing has been based on its high benefits of efficiency and transparency. However, not many in-depth discussions have been done on such blockchain utilization for Islamic social finance or the metaverse. This pape
Growth differences between former colonies
No full textThe objective of this study are to examine the impact of colonization on former colonies on their economic growth performances. The relationship between economic growth and selected independents variables are discussed covering 72 former colonies for the period of 1995 to 2015. The objective is to investigate the determinants of growth in former colonies colonized by four former conquerors namely Spain, France, The United Kingdom and The Soviet Union (Russian Federation). To achieve this objectives, we employed Generalized Method of Moment (GMM) estimator popularized by Arellano and Bond (1991) and Blundell and Bond (1998) and the independent variables of the estimation to achieve the targeted objectives, are the control variables of growth gross fixed capital formation (GFCF), as a proxy for capital and total population (TPOP) as a proxy for labor. This study also uses other independent variables such as length of colonial period (COLOH) which is the focus variable, domestic credit to private sector (DCPS), trade openness (TOP), foreign direct investment (FDI) and a couple of institutional qualities representing variables such political rights (PR) and civil liberties (CL). The results are quite consistent and robust - colonization is positive and highly significant implying that colonization indeed has a positive impact on the colonized countries, though the masters are perceived as parasites. They also prepare the right infrastructures that could enable the colonized countries to grow economically. As for the other variables including the control variables population, domestic credit to private, trade openness, and gross fixed capital formation are also positive and significantly related
Selected issues in the use of RegTech in the Islamic and conventional financial markets
No full textThis study aims to explore several challenges in the use of regulatory technologies (RegTech) in Islamic and conventional financial markets and share recommendations in this regard. A qualitative research methodology was used to identify the existing challenges. Literature was reviewed and analyzed, and seven experts were interviewed or consulted online and their feedback examined. The judgment of the case B2C2 Ltd v Quoine Pte Ltd. was reviewed. This study reveals a lack of relevant regulatory frameworks capable of meeting some of the evolving challenges, lack of awareness among market players and lack of expertise in RegTech. The list of additional challenges includes the issue of legacy technology, the weaknesses of human programmers and the need for a multifaceted solution for compliance requirements. This study notes the novelty of RegTech in the financial world, especially in the Islamic financial market. Thus, there is a dearth of relevant literature. This study assists relevant conventional and Islamic financial market entities and authorities in determining the potential impact of RegTech on their respective businesses and the financial system
Zakat payment from cryptocurrencies and crypto assets
No full textThis paper aims to examine the existing practice of accepting zakat payments using cryptocurrencies and crypto assets by discussing its Shariah issues. This is qualitative research in nature, as unstructured interviews with experts in the field were conducted to understand the existing practice regarding zakat on cryptocurrencies/crypto assets while literature on the topic was reviewed to derive conclusions. It is found that there are divergent views among contemporary Shariah scholars on the Shariah permissibility of cryptocurrency and crypto assets. As such, by evaluating the existing practices of some companies, this study has concluded that there is room to pay zakat using cryptocurrencies and from investments made on crypto assets. As long as they have been screened and classified as Shariah-compliant, they can be qualified to be part of one's wealth from which zakat shall be paid. However, the findings of this research shall be subject to the fatwa and rules adopted in the specific jurisdiction in which the zakat payer resides. Laws made by the ruler to benefit the public ought to be considered in upholding the masalih (public interests) of all, which is in line with the legal maxim of "tasarruf al imam manut bi al-maslahah" (the ruler's decision is dictated in favor of the people). It is anticipated that the findings of this research will benefit zakat organizations and zakat payers in understanding how they should deal with cryptocurrencies and crypto assets in the collection and payment of zakat
Widening distrust of globalisation could herald economic fragmentation
No full textIt was the Ricardian theory of comparative advantage that provided the rationale for why nations should trade among themselves and how it can be beneficial to all. Steady growth in trade led to increased economic integration between countries and the resulting globalisation. The post-war years, from 1945 onwards, saw extensive growth in cross-border movement of goods, services and capital. This peace dividend, which sustained over the next decades, received a major boost in the 1980s with the integration of China and the former Soviet bloc nations into the global trading system. The subsequent formation of the World Trade Organization also helped further the globalisation process by establishing a framework of rules and norms. Over the years, despite the ebbs and flows, there is no disputing the many benefits that have accrued to the global community. Globalisation enabled poorer countries to catch up and pull themselves up through export-oriented growth. As a result, at least a billion people have been estimated to have been pulled out of poverty. Nations became closely integrated as production became increasingly specialised in the name of economies of scale and cost efficiencies. As output efficiencies reduced product costs and increased affordability, the poorest segments benefited. Further, as outsourcing of manufacturing and services from high cost to lower cost nations became necessary for competitiveness, skilled and semi-skilled labour in developing countries benefited. China became the world�s factory and India the provider of its backroom support systems. Despite these obvious benefits of globalisation, a recent International Monetary Fund (IMF) policy paper points at rising discontent and dysfunctional policies initiating a process in reverse thrust. The inflection point according to the paper was the post-global financial crisis period from 2009
Dawabit 'iqmal maqasid al-Shari'ah fi tawjih al-mu'amalat al-maliya al-mu'asirat
No full textAn abstract is written in Arabic
Crop takaful in the Maldives
No full textParticipants in crop takaful would be compensated for any loss or damage suffered due to any of the aforementioned calamities. Crops covered in this takaful product include papayas, brinjals, butternuts, watermelons, pumpkins, cucumbers, melons and bananas. The sum covered will be automatically calculated based on the selected crop type and harvesting land size. Apart from crop takaful, takaful products offered by Ayady Takaful include comprehensive motor takaful, third-party motor takaful, expatriate plus takaful, health takaful, travel takaful, hull takaful and hajj and umrah takaful. Ayady Takaful also offers both general and family takaful products. Currently, there are five insurance companies registered with the Maldives Monetary Authority (MMA) in the Maldives and among them the only fully-fledged takaful company is Amana Takaful Maldives; Allied Insurance Company of the Maldives is the only company with an Islamic window to offer takaful under its brand name, Ayady Takaful
Sukuk market snapshot - 4th quarter | December 2022
No full textThe global sukuk market contracted 6% y-o-y in 2022 to USD154 bil, driven mainly by a drop in sukuk issuances from key market players, more specifically the GCC and Indonesia. In the GCC region, the Ukraine conflict resulted in supply chain disruptions which resulted in higher oil prices. This led to lower funding requirements by the GCC government and consequently, smaller sovereign sukuk issuances. Inflationary pressures, rate hiking throughout the year and geopolitical tensions created an unfavourable economic environment for most of global issuers as well. Despite that, the global sukuk market fared well considering the record number of rate hikes in 2022. Malaysia and Saudi Arabia remained as the two largest sukuk issuers commanding 63% of issuances in 2022. Sovereign sukuk was the mainstay form of sukuk issuance constituting 57.3% of the total. Corporate sukuk issuances staged a comeback in 4Q 2022, largely contributed by Malaysian corporates, after consecutive quarters of decline demonstrating promising signs of recovery going into 2023 as rates are expected to stabilise. The green and sustainability sukuk market experienced a new high of US6 bil, unlike the wider global sukuk market). Demand was driven mainly by investors with ESG-centric investment mandates. This trend is expected to continue into 2023 as the current supply of ESG shariah-compliant issuances fall short of this demand. Notable issuances included Dubai Islamic Bank's US$750 mil sustainable Sukuk in November 2022
Empowering communities: lessons learned from the commoners' project in the Maldives
No full textIslamic social finance has gained significant attention in recent times as an alternative financing approach to conventional methods, with the aim of achieving the UN SDGs. While the formal institutionalization of Islamic social finance is limited to a few countries where Islam is recognized as the official religion, the practice has been deeply rooted in Islamic societies for centuries. The Maldives, a country with a 100% Muslim population, has a long-standing tradition of various forms of Islamic social finance, including zakat, waqf and sadaqah. One notable initiative that showcases the practice of Islamic social finance in the Maldives is the 'Nourish Together: The Commoners' Food Project Powered by STO'. This project, organized by The Commoners, a group of concerned individuals, aimed to provide essential sustenance to individuals and families facing food insecurity in the Hiya Flats, a residential area located in Hulhumale', an artificial island in the Maldives