INCEIF Knowledge Repository (INCEIF University)
Not a member yet
1768 research outputs found
Sort by
Financial performance of general takaful companies
No full textSince its inception in 1979, the takaful industry has rapidly grown particularly in Muslim regions, namely the Middle East, North Africa and South East Asia. Presently, its double-digit growth rate continues though at a decremental rate. Quite the reverse, other components of the Islamic financial system (i.e. Islamic banking and Islamic capital market) maintain an incremental growth trend. In terms of Islamic financial assets, Islamic banking comes first in terms of both size and growth whilst takaful lags behind. Theoretically, within this system, general takaful products are complementary to the Islamic banking debt-based financing products that constitute the major share of Islamic banking offerings. For instance, home takaful and motor takaful provide shariah-compliantprotection schemes to murabahah home financing and vehicle financing, respectively. Yet, the global takaful industry is not growing in parallel with Islamic banking
Islamic wealth management: theory and practice
No full textThe book begins by defining wealth from both a secular perspective and an Islamic perspective. It describes how wealth needs to be earned in lawful ways, preserved and used to benefit the needs of the community, with a small part of the wealth given away to charity, and the remainder managed in accordance with laws and common practices, as established by a majority consensus of scholars of the religion in historical times. Each section of the book has relevant chapters that discuss the theory, as well as the application and the challenges in Islamic wealth management in real and financial markets
Towards maqasid al-Shariah based monetary regime in Malaysia: an evaluation
No full textConventional monetary system entrenched Islamic banking and finance from being independent on its notion. Islamization of conventional monetary system should be considered as a good short-term strategy, albeit still far from achieving the objectives of the maqasid al-Shariah as well as the moral economy of Islam. The study employs maqasid al-Shariah framework to test, identify and establish an appropriate Islamic monetary regime within the sphere of the higher objective of Shariah. The findings of this study have shown that the existing Islamic monetary mechanism and instruments in the market at present are considered Shariah compliant ..
The resurgence of Islamic social finance
No full textThe consistent growth of the global Islamic banking and finance has provided a niche market with solutions and financial inclusion through a well-defined Islamic ethos. Unfortunately, Islamic finance has been criticised for having diverted from its core principles of socio-economic empowerment and upliftment. As in mainstream interest-based finance, Islamic financing and advances rely on the customers' credit-worthiness and the ability to repay, inevitably supporting those with good credit standing to improve their financial status. But, how has Islamic finance improved the lot of the downtrodden? What about the ethical, socio-economic tenets that Islamic finance has so vociferously espoused? We are perhaps at the brink of a new era in Islamic finance, driven by a global appetite for socially responsible and ethical investment created by the hype from the UNPRI 61 and the more recent UNSDG 172
Trajectory of Islamic banking in Malaysia: from conforming to transforming
No full textThe development of Islamic finance can be traced back to the establishment of the first Islamic bank in Malaysia, Bank Islam Malaysia Berhad, in 1983. This chapter explores the various phases in the development of Islamic banking in Malaysia, including its future path in the coming decades. References will be made to the initiatives of the public and private sectors in contributing to the development of the Islamic banking industry. Coupled with the background of an open economy, opportunities for cross fertilisation have enabled the restructuring of the Islamic banking industry to meet the challenges of global competition.
Available in physical copy only (Call Number: HG 3368 A6 I82Mo
The wage transition in developed countries and its implications for China
No full textThe expression "wage transition" refers to the fact that over the past three decades in almost all developed economies wage increases have leveled off. There has been a widening divergence and decoupling between wages on the one hand and GDP per capita on the other hand. Yet, in China wages and GDP per capita climbed in sync (at least up to now). In the first part of the paper we present comparative statistical evidence which measures the extent of the wage transition effect. In a second part we consider the reasons of this phenomenon, in particular we explain how the transfers of labor from low productivity sectors (such as agriculture) to high productivity sectors (such as manufacturing) are the driver of productivity growth, particularly through their synergetic effects. Although rural flight represents only one of these effects, it is certainly the most visible because of the geographical relocation that it implies; it is also the most well-defined statistically. Moreover, it will be seen that it is a good indicator of the overall productivity and attractiveness of the non-agricultural sector. Because this model accounts fairly well for the observed evolution in industrialized countries, we use it to predict the rate of Chinese economic growth in coming decades. Our forecast for the average annual growth of real wages ranges from 4% to 6% depending on how well China will control offshoring and the development of its healthcare sector
Islamic equity market
No full textThe global Islamic finance industry has evolved from a small industry to a dynamic, robust, and competitive one. Currently, the industry, built on the notion of justice and fairness, has a global asset size of approximately USD2 trillion (MIFC, 2016). Despite the soft global economic outlook, this industry is expected to grow as many more nations are embracing this alternative system that is proven to be not only profitable but also resilient to macroeconomic shocks.
Available in physical copy only (Call Number: HG 3368 A6 I82Ba
Option price and market instability
No full textAn option pricing formula, for which the price of an option depends on both the value of the underlying security as well as the velocity of the security, has been proposed in Baaquie and Yang (2014). The FX (foreign exchange) options price was empirically studied in Baaquie et al., (2014), and it was found that the model in general provides an excellent fit for all strike prices with a fixed model parameters; unlike the Black-Scholes option price Hull and White (1987) that requires the empirically determined implied volatility surface to fit the option data. The option price proposed in Baaquie and Cao Yang (2014) did not fit the data during the crisis of 2007 & 2008. We make a hypothesis that the failure of the option price to fit data is an indication of the market's large deviation from its near equilibrium behavior due to the market's instability. Furthermore, our indicator of market's instability is shown to be more accurate than the option's observed volatility. The market prices of the FX option for various currencies are studied in the light of our hypothesis
Political stability and growth: an application of dynamic GMM and quantile regression
No full textThis paper studies the effect of political stability on economic growth by taking 120 developing countries over the period of 1996-2014. We apply relatively advanced dynamic two step system-GMM and quantile regression. Political stability is found to be a key determinant of economic growth. More importantly, political instability (or risk) is found to be higher in the OIC countries and is a deterrent to economic growth. Also, for the lower and middle income OIC countries, political instability appears to affect economic growth more severely perhaps due to the absence of strong economic and political institutions. Moreover, political instability is also found to be significantly higher in the oil-dependent OIC countries. Notably, political instability is likely to affect growththrough the channels of investment and human capital accumulation in the developing countries. Finally, the impact of political stability and political instability on growth is found to be equally distributed across the OIC countries with higher or lower growth level. Therefore, the development of political and economic institutions along with human capital development is recommended for all the developing countries in general and the OIC countries in particular
A unique Islamic microfinance scheme
No full textMicrofinance is a new concept in the Maldives. In 2015, the first Islamic microfinance scheme was introduced under the name of "FaseyhaMadadhu" with assistance from Islamic Development Bank. The products developed under this scheme were unique as it was shaped by looking at local needs. This paper will discuss these products and the features of it. It is hard to find literature about the subject matter as this is a newly introduced scheme and the first-hand experience of the author in structuring and implementing the scheme has been relied extensively. It is anticipated that the outcome of this paper will pave the way for those jurisdictions that aim to introduce Islamic microfinanc