INCEIF Knowledge Repository (INCEIF University)
Not a member yet
1768 research outputs found
Sort by
An examination of the Shariah committee role in Islamic financial institutions
No full textThe system of corporate control, effective and efficient governance that is consistent with Shariah guidance has been an important agenda for Islamic Financial Institutions since the existence of Islamic Finance in Malaysia. This is especially important in light of rapid growth in Islamic Finance industry not only in Malaysia but globally. For example, the global total assets of the industry as of end 2014 has exceeding USD2.0 trillion or a compounded annual growth rate (CAGR) of 17.4% between 2009 and 2014 (Ernst & Young, 2014). The well-functioning Islamic Finance industry can only be sustained if there is good corporate governance practice by IFIs that comply with Shariah guidance
Developing a causal model of Shariah non-compliance risk and Shariah risk governance
No full textThe objective of this study is to investigate the factors affecting the rise of Shariah non-compliance risk that can bring Islamic banks to succumb to monetary loss. The study is also intent to propose a measurement of Shariah non-compliance risk via accounting technique. Subsequently, the study has also entails to identify the causal modelling of the Shariah non-compliance risk ..
Developing world class human capital in Islamic finance
No full textSince the last decade, Islamic Finance (IF) has seen unparalleled growth in terms of industry size and value. According to E&Y World Islamic Banking Competitive Report 2014/15, the Global Islamic Banking assets witnessed a compounded annual growth rate (CAGR) of around 17% from 2009 - 2013
Testing the conventional and Islamic financial market contagion: evidence from wavelet analysis
No full textThis study is a first attempt at testing the extent of contagion for conventional and Shari’ah-compliant stock indices. We examine the period surrounding the U.S. subprime crisis of 2007–9 and the Lehman Brothers collapse of 2008 to determine the relative extent of contagion. We find no clear evidence of contagion during the subprime crisis however, during the Lehman collapse most conventional indices showed contagion. Interestingly, the Shari’ah-compliant indices mostly do not show evidence of contagion. Collectively, our results have important implications for fund managers in terms of asset allocation risk and policymakers seeking an optimal policy response to crises
Islam and economic policy
No full textThis book looks at the impact of Islamic teaching on public economic policy and asks how Islamic economics differs from mainstream micro- and macroeconomics. Some of the key features include: looks at how Islamic values can influence choices made by business and governments; asks whether Shari'ah teaching affects taxation and social welfare policies; assesses the potential of Islamic economics to provide an alternative to a capitalist economic system and looks at the implications for international economic relations; individual chapters evaluate the economic successes and failures of OIC member states...
Available in physical copy only (Call Number: BP 173.75 W752
Religiosity and threshold effect in social and financial performance of microfinance institutions: system GMM and non-linear threshold approaches
No full textThe commercialization process and over-emphasis on sustainability apparently improve micro finance Institutions financial performance and the scale in terms of total number of borrowers and average loan size. Whether focusing on financial sustainability is necessarily at the sacrifice of serving less poor clients? Social and finance performance of MFIs depend on the belief and culture of the participant of the society? The inconsistent results of previous studies implicate that linear regressions may be insufficient to explain the sustainability-outreach linkage because of potential non-linear relationship between financial sustainability and average loan size. To solve this puzzle this study employs advanced dynamic difference GMM as well as system GMM along with non linear Hansen threshold technique. The result shows the significant effect of religion on the social and financial performance microfinance institutions, while threshold effect found insignificant. Our findings present important insights for Islamic microfinance managers and donors as well as policy makers of the country to formulate a better policy. Social performance will harmonize the financial performance of microfinance institutions, so the MFIs authorities should not be worried about the financial sustainability while focusing on outreaching the poor
ISRA Bloomberg quarterly sukuk review Q2, 2015
No full textA summary of some Q2 2015 sukuk issuances are presented along with ISRA's views on the sukuk tradability, transaction flow and shariah compliance. The following sukuk are reviewed from Hong Kong Sukuk 2015 Ltd, Jambatan Kedua Sdn Bhd, Garuda Indonesia Global Sukuk Limited, Noor Sukuk Company Ltd, and Perusahaan Penerbit SBSN Indonesia III
Introduction to Islamic economics: theory and application
No full textThis book is a comprehensive resource and groundbreaking work that provides an overview of the organizing principles and fundamentals values of an Islamic economy. It also offer a clear explanation of how the conventional global economic system differs from an economy grounded in the fundamental principles of Islam
The unique risk exposures of Islamic banks’ capital buffers: a dynamic panel data analysis
No full textThe growing relevance of Islamic banking from a prudential perspective warrants the need to investigate the susceptibilities of Islamic banks’ capital buffers to unique risks emanating from their operating environments. We employ a panel model using two-step dynamic Generalized Method of Moments (GMM) on a data set comprising 128 conventional and Islamic banks. Our results tend to indicate privately owned Islamic banks, unlike their state owned counterparts, attempt to safeguard shareholders by independently mitigating the effects of displaced commercial risk through higher capital buffers. The relation between equity investment risk and bank capital buffers also seems to vary by region
Risk-return characteristics of Islamic equity indices: multi-timescales analysis
No full textThis paper is motivated by the heightened interest in investing in Islamic equities. The paper is the first attempt at analysing the risk-return characteristics of Islamic indices at different timescales by applying a relatively new approach in finance known as wavelet analysis. We analyze the Dow Jones indices of 11 countries, mostly emerging markets, and 10 global sectors between 2008 and 2012. We focus on exploring the multi-horizon nature of systemic risk (market beta), average return, volatility, and correlation. We find that the differences in betas between Islamic and conventional indices at most of the timescales are not statistically significant. A few exceptions show equal returns with lower risks for Islamic indices mostly at higher time scales (longer horizons) in some countries as well as 6 out of 10 sectors. We also find lower correlations for some Islamic sector-pairs (financials, utilities and consumer services) at lower time scales (shorter horizons)