INCEIF Knowledge Repository (INCEIF University)
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1768 research outputs found
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Beneficial ownership: to what extent it complies with Shari'ah?
No full textThis paper is a preliminary research on studying the application of beneficial ownership in Islamic financial products. It aims at investigating the meaning of beneficial ownership and its recognition in the Shari'ah perspective. This paper starts with identifying the meaning of milkiyyah (ownership) and its characteristics in the Islamic law and followed by the discussion on beneficial ownership from legal perspective. The study emphasizes on the historical and theoretical aspects of beneficial ownership. It then critically elucidates the meaning of beneficial ownership and its use in commercial transaction as to ascertain whether its use is in compliance with the requirements of ownership in Shari'ah. Analysis is done via the method of takyif fiqhi (fiqh characterisation) on the use of beneficial ownership. Some Shari'ah issues would be examined carefully by comparing the views of classical jurists and then supported by modern jurists. Finally, the study suggests that the beneficial ownership should be considered as real ownership since it is exclusively used in registration and legal documentation because Shari'ah has allowed the transfer of ownership based on a sole basis of contract
Issues in Islamic finance: role of ethics for the public good in Islamic finance
No full textInterview session with Prof. Datuk Dr. Syed Othman Alhabshi, Chief Academic Officer of INCEIF on "Issues in Islamic finance: role of ethics for the public good in Islamic finance"
A risk sharing banking model
No full textIslamic banking has thus far mimicked conventional banking with the result that the same problems and outcomes have surfaced, even though it is operating within an interest free framework. This apparent "convergence" has led to disaffection both among consumers of Islamic banking services and policy makers. This paper proposes a risk sharing model for Islamic banks that can potentially pull Islamic banking away from this path dependency. Under the proposal an Islamic bank's assets would be securitized by the issuance of sukuk type instruments that have the same underlying contract and average "duration" as customer financing. Small assets may have to be pooled into tranches of similar maturity before being securitized. Medium and larger assets would have papers issued directly against them. Thus, instead of depositors, an Islamic bank would have thousands of sukuk holders, all of whom share the profits and losses arising from their respective tagged asset. Other than Wadiah based safe custody accounts and current accounts against which the bank holds cash, all other depositors would be "sold" sukuk for the amount, duration and risk level that they prefer. The model has several advantages such as, minimizing systemic risk through risk dissipation and reducing the liquidity mismatch inherent to banking. The securitized papers provide new liquidity instruments and can enhance liquidity within the Islamic finance sector. Where the macro economy is concerned, the proposal enhances system stability by reducing risk concentration within the banking system, substantially widens financial inclusion by way of small denomination sukuk and minimizes the contingent liabilities of governments by avoiding the use of deposit insurance
The economic antecedents of human well-being: a pooled mean group estimation of dynamic heterogeneous panel
No full textThis study seeks to investigate the economic antecedents of happiness by employing the Mean Group (MG), Pooled Mean Group (PMG) and the Dynamic Fixed Effects (DFE) estimators to analyse a set of macro panel data on selected OECD countries for 40 years from 1973 to 2012. The results show evidence that income and unemployment have a favourable impact on happiness, while happiness is hindered by inflation and income inequality. Surprisingly, the study revealed that institutional quality is not a significant antecedent of happiness. It is worth noting the importance of the reference group theory or relative theory of happiness and the set-point theory of happiness in explaining the role played by income, unemployment, inflation, income inequality and institutional quality in explaining human well-being
Determinants of bank deposits in Southeast Asian countries: Islamic vs conventional
No full textThe ability of banks in giving out loans and investments depends very much on their ability of attracting deposits. Unlike its conventional counterpart, Islamic principles forbid Islamic banks to take any interest-related income amid the fact that deposits are an important source of fund for its operational and financing. Consequently, the risk of deposit withdrawal by depositors is an important aspect that should be well managed in both conventional and Islamic banking system. Therefore, the objective of this study is to examine the effect of selected economic and bank specific variables on deposits placed at the Islamic and conventional banks ..
Al-jam' bayn al-'uqud fi al-muntajat al-maliyyah al-Islamiyyah
No full textAn abstract is written in Arabic
Productivity and spillover effect of merger and acquisitions in Malaysia
No full textThis paper aims to examine the productivity and spillover effect of Malaysian horizontal merger and acquisition (M&A) activities in the long run. In terms of analytical tools, economic value added (EVA) and data envelopment analysis (DEA) are used. The results of this study reveal that M&As in the absence of antitrust laws could be driven by managerial self-interest to create market power instead of realizing synergistic gains. Also, in Malaysia, the non-merging rival firms have significantly higher productivity improvement than the control bidder firms, and therefore, this study has identified the spillover effect as a behavior of M&A reaction. This paper differs from previous studies in that it attempts not only to examine the real long-term gains of horizontal M&A activities in Malaysia but also the spillover effects of M&A activities on similar but non-merging firms
Does Vietnam stock market integrate with ASEAN members?
No full textThis paper examines the long run relationship between Vietnam stock market and her ASEAN partners like Malaysia, Singapore, Thailand, Indonesia and the Philippines. The paper uses the weekly data from July 2006 till February 2014 and run through an analyzed using time series techniques in order to test for cointegration of Vietnam stock market with ASEAN members. Eagle-Granger, Johansen-Jeselius (JJ), and Vector Error Correction Model (VECM) methods are used in analyzing data. The results obtained from JJ test find at most one cointegration among ASEAN members ..
Unlocking waqf properties through diminishing partnership (DM), long lease (LL), build operate transfer (BOT) & istibdal
No full textThe institution of waqf played a major role in early Islamic civilization it involves every aspect of socio-economic life in the Muslim world for 1300 years. Even though, the last century witnessed its destruction where its role becomes idle, undeveloped and unproductive in almost all Muslim countries, yet its recent revival shows optimism approached in galvanizing its socio-economic role. Through adopting new financial modes it manages to redevelop the old waqf properties into huge towers and buildings an innovation which succeeded inmultiplying the number of the beneficiaries of the old waqf properties
Risk management in Islamic finance: issues in application of conventional risk management tools
No full textFinancial intermediaries such as banks face different risks during the course of their business. Handling these risks become more challenging especially while operating in a competitive market environment. As Islamic banking industry is relatively new, an adequate regulatory and legal framework to support the industry is still lacking in many countries. Further the nature of risk faced by Islamic banks in certain circumstances is different at the organizational and product level as compared to their conventional counterparts ..