INCEIF Knowledge Repository (INCEIF University)
Not a member yet
1768 research outputs found
Sort by
A proposal designed for calibrating the liquidity coverage ratio for Islamic banks
No full textThis paper aims to critically investigate the liquidity risk management of Islamic banks and develop an alternative regulatory framework appropriate for liquidity management of these banks. The specific risk profile of an Islamic bank requires developing a new and more efficient regulatory framework, which relies on risk-sharing and symmetric information among parties. The paper makes a differentiation between small local banks and internationally active Islamic banks and proposes to apply liquidity requirements only for internationally active Islamic banks. A new proposal for the liquidity coverage ratio (LCR) of Islamic banks is developed in this paper towards mitigating risks and concurrently protecting the interests of investment account holders. Minimum and maximum thresholds are proposed for each liquid asset in this new LCR framework. An alternative liquidity approach is discussed to complement the proposal and several policy options are suggested
Re-estimation and modelling shadow economy in Malaysia: does financial development mitigate shadow economy?
No full textThe purpose of this study is to re-estimates the size of shadow economy in Malaysia and investigates the role play by the financial sector development in mitigating the size of shadow economy. Our results suggest that individual income tax burden has an impact on shadow economy in Malaysia; indicating that lower personal tax rate discourages people from participating in the shadow economy in Malaysia. On the other hand, increase in national income and government consumption also reduce shadow economy; while increase in misery increases shadow economy in Malaysia. One policy implication from this study is that the Malaysian government should embark on programs that can reduce the size of the shadow economy by removing barriers for easy access to the credit market and further reform of the financial sector should be the focus
Effects of shadow economy on poverty in developed and developing countries
No full textPoverty alleviation is at the top of the Millennium Development Goals' (MDGs) list of eight goals. In the year 2000, nearly all heads of states and governments met and reaffirmed their faith in the United Nations (UN) as necessary foundations of a more peaceful, prosperous and just world. At this meeting, the MDGs were adopted which the first goal is eradicate extreme poverty and hunger. The question of how to finance poverty reduction measures has been a major concern for policy makers and international organizations for many years. Although it is useful to focus on the quantity and quality of foreign aid and development assistance of donor communities, it is not the solution. In the long term, countries can only prevail against their dependency on foreign aids when they are able to move enough domestic resources to guarantee universal access to essential public goods and services
The significance of Central Bank of Malaysia Act to Islamic banking
No full textMalaysia is considered as the cranium of Islamic banking. The purpose of this paper is to find out the significance of Central Bank of Malaysia Act (CBMA) to Islamic banking by analysing the relevant provisions of CBMA and the reported case law in Malaysia in this regard. This is a legal research where the provisions of this Act relevant to Islamic banking is reviewed and assessed in the light of reported case law. It is found that there is a need for the legislature to come up with the specific directions or practice notes in which Shariah issues of the case could be differentiated from factual issues/legal issues. It is hoped that the outcome of this paper will assist those jurisdictions aspiring to have a sophisticated legal framework for Islamic banking to comprehend the significance of having statutory provisions to establish the apex Shariah Advisory Council at the Central Bank level
The Maldives
No full textThe Maldives is a 100% Muslim country. Islamic finance in the Maldives was introduced 15 years ago. The journey of developing Islamic finance in the Maldives has not been so long, but today the number of players in the market is 12. For a small country like the Maldives, having 12 Islamic finance providers is adequate. In 2003, when Amana Takaful Maldives started its operation in the Maldives, it opened an agency office called Amana Takaful Sri Lanka. Until the 4th March 2010, the company operated through a local agent with a temporary license. Upon receiving a license from the Maldives Monetary Authority (MMA) which is the regulator, the company ceased its operations through the agent and commenced functioning independently
The case for a 'riba free' logo for halal businesses
No full textHalal and haram is a concept which every Muslim must adhere to in all their daily affairs. Halal and haram are not terminologies relevant only for food or consumable items. In Shari'ah, the concept of halal and haram is also to be applied in muamalat or commercial matters. In short, all affairs of human must be based on doing what is halal or permissible and abstaining from what is haram or forbidden. According to Thomson Reuters' State of the Global Islamic Economy 2018/19 report, there are 1.8 billion Muslims in the world whose spending was estimated to be $2 trillion in 2017. In addition to Muslims, who made up a quarter of the world population, there are people of other faiths and backgrounds who has also subscribed to the principles upheld by Shari'ah such as human treatment of fellow mankind, animals and the environment. Therefore, there is a big market for halal goods and services
Debt is debt, even if it's Shariah-compliant
No full textIn a book aptly titled 'This Time Is Different', Rogoff and Reinhart, two prominent economists, show that every single financial crisis over the last 800 years has had a single root cause - excessive debt. It appears that what begins as borrowing for the funding of development infrastructure can, as it builds, lead to a spiralling of debt and financial crisis. There is a circular and reciprocal relationship between debt, leverage, vulnerability and financial distress. This applies to all borrowers, governments, corporations or other entities
The pricing of Maldives Islamic Bank shares and listing on Maldives Stock Exchange
No full textIn a news conference held by Maldives Islamic Bank (MIB) on the 30th June 2019, it was announced that MIB is going public and its IPO will begin on the 28th July 2019 and close on the 18th September 2019. The price per share will be MVR35 (US15.41 million). MIB is selling 31% of its shares equivalent to 6.98 million shares
Farewell to the Goldilocks economy?
No full textIn 2018, the global economy began with much promise. The prior year had seen fairly strong and synchronised growth across the US, Western Europe and industrialised Asia. Stock markets rose to reect this steady stable growth. The S&P 500 had one of its most consistent and strongest runs in the 10-month period leading to October 2018. The broad-based index reached its historic peak in late September. Since then, from October, both the global economy and stock markets appeared to have gone through a series of jolts. Risk and volatility appear to have returned with a vengeance. The last quarter (4Q) of 2018 was tumultuous from an economic viewpoint. Why the sudden turn of fortune? For one thing, the bull run in the US stocks has aged. The post-crisis recovery is now 10 years old. The monetary stimulus is a spent force, but the resulting build-up in global debt remains
Waqf development in Marawi city via issuance of perpetual waqf sukuk
No full textSince 2017, the city of Marawi was left in ruins after five months of aerial bombardments and close-quarter fighting between Islamic State of Iraq and al-Sham (ISIS) and government forces. Many buildings were destroyed; mosques and schools are no exceptions. While rebuilding efforts have begun in the city, the government has limited resources to fund city reconstruction and Waqf properties (e.g. mosques and schools) are not constitutionally considered as part of the government assets. Fortunately, the government seeks to channel funding for city reconstruction, including Islamic finance schemes. Therefore, this paper aims to assess the opportunities and challenges to rebuild Waqf properties through the issuance of Sukuk, Islamic bond. This paper adopts a qualitative research approach where secondary sources such as books, journals, articles and websites related to Waqf are reviewed. The paper also examines the successful examples of Sukuk-Waqf as part of the analysis