1,721,013 research outputs found
Islamske finansije od lokalnih inicijativa do globalnog tržišnog igrača: mogu li povezati Istok i Zapad
No full textIslamske finansije su prošle put od lokalnih inicijativa do globalnog tržišnog igrača, sa sve većim prisustvom u zapadnim zemljama. Ovaj rad istražuje historijski razvoj islamskih finansija, njihove različite sektore i njihov potencijal da premoste jaz između Istoka i Zapada. Islamski fondovi, islamsko bankarstvo, sukuk (islamski certifikati ili obveznice) i tekaful (islamsko osiguranje) pokazali su različite rezultate u dinamičnom globalnom finansijskom okruženju. Dok su islamski fondovi zabilježili pad imovine pod upravljanjem zbog viših kamatnih stopa, islamsko bankarstvo je suočeno sa izazovima inflacije i digitalizacije. Sukuki su pokazali otpornost, dok je tekaful zabilježio rast. Malezija se ističe kao lider u islamskim finansijama,zahvaljujući sveobuhvatnom pristupu vlade i regulatornim reformama, dok Ujedinjeno Kraljevstvo (UK) predvodi zapadne zemlje u razvoju islamskih finansija. Ovaj rad također istražuje rastući trend islamskog fintecha i inicijative za širenje islamskih finansija u zemljama kao što su Rusija i Uganda. Zaključak ovog rada je da islamske finansije mogu igrati ključnu ulogu u premošćivanju kulturnih i ekonomskih razlika između Istoka i Zapada, ali uspjeh zavisi od adekvatne edukacije i političke volje. Islamske finansije nisu samo alat za ekonomski rast, već i potencijalni most za međukulturološko, međureligijsko i međucivilizacijsko razumijevanje i saradnju
Navigating Modern Economic Challenges: The Islamic Economics Paradigm in Focus
No full textThe following chapter provides a summary of the global financial crisis (GFC) and how it impacted the global financial markets generally, emphasizing the Islamic finance industry (IFI) in particular. The GFC has been a catalyst for the supporters of the Islamic economic and finance principles. Minsky’s claim (2008) that stability is the root of instability was gaining more and more supporters after the GFC, provoking more and more criticism of the conventional finance paradigm. Such shift elevated Islamic financial system as a potential alternative. Looking at the failures and lessons learned from the GFC in tandem with the relatively sound state of the Islamic financial industry implies a reexamination of this paradigm and proposal of the one based on Islamic economics and finance principles. Grounded in socioeconomic justice, introducing equality, responsibility, transparency, honesty, and morality, this paradigm can be successful if appropriately implemented. Nevertheless, a current bifurcation exists between the wings of Islamic economics and finance theory and their practical application. To tackle the current issues, innovative thinking has to be applied especially in Islamic economics and finance. Mimicking the conventional financing’s methods and incorporating them through Shari’atization process gives rise to the risks of the traditional system’s assimilation and system’s
breakdown. Therefore, building a framework and offering a tangible course of action is unavoidable for the management of the complexities and the risks involved
Islam and Free Trade: The Contributions of Muslim Scholars to Modern Economic Theories
No full textIslamic economic ideology has exerted a profound influence on the evolution of the open market, particularly in the domains of individual property rights, unobstructed commerce, and restrained governmental interference. The Islamic doctrine pertaining to individual property rights underscores the entitlement of individuals to possess and exercise dominion over their possessions,
and this fundamental doctrine has played a pivotal role in shaping the unrestrained market. Islamic economic philosophy also champions free trade, affording individuals the freedom to exchange commodities and services devoid of governmental constraints. This doctrine has contributed to the creation of a more efficient and prosperous economic milieu. Ultimately,
Islamic economic thought propagates the concept of delimited governmental involvement in economic affairs. This principle affords enterprises the latitude to undertake risks, while empowering entrepreneurs to establish novel companies, both of which are integral to economic expansion. The undeniable contributions of Islamic economic thought to the maturation of the
open market are incontestable. These principles have been instrumental in the establishment of a more efficient, flourishing, and vibrant economic landscape. As our world becomes progressively intertwined, it remains imperative to retain the insights gleaned from Islamic economic thought and persist in the pursuit of an equitable and free market system
Asymmetric impact of microfinance on economic growth: Evidence from Bosnia and Herzegovina
No full textThis study explores the correlation between microfinance loans (MFL) and economic growth in Bosnia and Herzegovina (Bosnia). It utilizes the non-linear Autoregressive Distributed Lag (NARDL) method to examine cointegration and short-run dynamics by analyzing quarterly data spanning from 2010 to 2022. The findings underscore the link between MFL shocks and long-term economic growth. The study unveils the unique effects of both positive and negative MFL shocks on growth, suggesting a non-linear relationship between microfinance loans and economic growth in Bosnia. However, the study concludes that the impact of MFL on Bosnia's GDP is adverse. Short-term fluctuations in MFL show no substantial influence on Bosnian economic growth. The coefficient of the error correction model is both negative and significant indicating the stability of the long-term relationship. This implies a rapid correction, with 46.4 % of the previous quarter's imbalance rectified within the current quarter. While our results are based on a single country, they align with recent criticisms of microfinance practices. Furthermore, our study offers a novel approach as it represents the first examination of the asymmetric relationship between MFL and GDP in Bosnia, providing valuable policy recommendations
Digital Currencies and Their Compatibility in the Islamic Finance Industry
No full textThe chapter is devoted to the in-depth analysis of the compliance between the Shari’ah rules and digital currency within the context of Islamic finance. The emergent trend of digital currencies, especially virtual based as in the case of Bitcoin, has raised questions on the issue of their compatibility with ethical and legal moral rights. The paper covers core issues like Shari’ah implementation, the utilization of tangible assets, crypto as a medium of exchange and some obstacles in merging crypto into Islamic banking. Besides that, the paper outlines workable solutions for overcoming these difficulties, including the introduction of Shari’ah-compliant cryptocurrencies, the development of a regulatory framework and the need for enlightenment and collaboration. Furthermore, the manuscript will exhibit some Islamic-centric digital currencies, e.g. the Islamic Coin and OneGram, to illustrate that a successful integration into Islamic finance is possible. Furthermore, future estimations consider the implications of central bank digital currencies (CBDCs) in Islamic finance which brings up both opportunities and challenges. The conclusion calls for ongoing research and innovation spanning traditional as well as digital (cryptocurrencies) in order to achieve Shari’ah harmonization and eventual evolution of the Islamic finance sector
Performances of Islamic and Conventional Equities during the Global Health Crisis: Time-Frequency Analysis of BRICS+T Markets
No full textThis study investigates the dynamic linkages and spillover effect between emerging economies (BRICS and Turkey), focusing on global crises, notably the COVID-19 pandemic. The study uses daily frequency data covering the period from 2002M5 to 2021M03. For the methodology, the paper employs Wavelet Coherence for multiresolution time-frequency analysis in addition to the frameworks of Diebold-Yilmaz Connectedness Index (DY12) and Barunik-Krehlik Frequency Connectedness Index (BK18). The empirical results reveal that the stock market comovements among sample markets are non-monotonous and depend on the time and frequency of returns. Significant correlations among the sample countries and a spike in overall spillover are also evident at the outbreak of the COVID-19 pandemic or the Global Health Crisis (GHC). China, Brazil, Russia, and Turkey with all the other markets, experienced the weakest links during the GHC. Brazil, Russia, and South Africa act consistently (across different horizons) as net transmitters, whereas India, China, and Turkey perform as net receivers. Islamic equities are more likely to “give” and less prone to “receive” than conventional equities. Compared to the Global Financial Crisis (GFC), the GHC effect is more severe but short-lived. The findings of this study are helpful to policymakers and diverse investors when making portfolio diversification decisions
The Future of Islamic Finance: From Shari’ah Law to Fintech
No full textslamic finance has witnessed a meteoric ascent in recent decades, cementing its status as a prominent player within the global financial sphere. Diverging from traditional financial systems, Islamic finance operates on the tenets of Shari'ah law, which emphasizes principles such as social equity, risk-sharing, and ethical investing. Although Islamic finance's appeal is evident within the Muslim community, its ethical and socially responsible investment options have begun to entice non-Muslims as well.
Edited by Edib Smolo and Mohamed Mahees Raheem, this exhaustive collection presents an all-encompassing account of the current status of Islamic finance, accentuating its ethical, technological, and sustainable facets. The work is divided into four distinct parts which encompass the origin and evolution of Islamic finance, the underlying principles of Islamic finance and the primary disparities between Islamic finance and conventional financial systems, as well as the future of Islamic finance. Moreover, the collection explores the assimilation of Islamic finance principles into modern financial systems and the influence of Muslim scholars on present-day economic theories. The work emphasizes the significant contribution of Islamic finance in promoting sustainable development and social prosperity and underscores the incorporation of Islamic finance into the Sustainable Development Goals (SDGs). The work delves into the prospects and obstacles associated with the amalgamation of fintech and digital currencies into the Islamic finance sector and highlights the potential of green and sustainable finance in the digital era.
This edited collection is designed for a wide range of professionals encompassing practitioners, policymakers, researchers, and students who are intrigued by the mounting significance of Islamic finance and its potential for the global financial sphere
The (mis)use of al-Hilah (legal trick) and al-Makhraj (legal exit) in Islamic finance
No full textPurpose
The purpose of this paper is to discuss the concepts of hilah (legal stratagem or legal trick) and makhraj (legal exit) and to examine their relevance and application in the contemporary Islamic financial services and products.
Design/methodology/approach
This paper uses the qualitative research approach to provide a theoretical overview of hilah and makhraj literally and technically and to examine their practical applications in Islamic financial products and services. In particular, this paper evaluates several Islamic financial contracts and examines its practices in light of the implications of hilah or makhraj.
Findings
The paper finds that there is a glaring difference in perception and application of hilah and makhraj, as argued by some scholars. It has been found that the principle of hilah has been extensively used in the Islamic finance industry as a way to circumvent the riba prohibition. For example, Islamic financial instruments such as bay’ bithaman al-ajil, bay’ al-‘inah, tawarruq, commodity murabahah, musharakah mutanaqisah and, in some cases, the sale and lease back sukuk are found to be tainted by hilah.
Research limitations/implications
Because this is a theoretical paper, it should be explored in more detail, and critical analysis of Islamic financial services and products should be reviewed in line with these two principles to ascertain if the products and services are in line with Shariah requirements and devoid of hilah practices or not and to align the industry with the maqasid al-Shariah.
Practical implications
This paper identifies a serious challenge that Islamic finance practitioners face in product development in their effort to provide more competitive services to their customers. As a result, it demonstrates the need to proactively use makhraj in innovating Islamic financial products and proffering more sustainable and competitive solutions.
Originality/value
This paper discusses a topic that attempts to dispel the suspicious perceptions of some analysts as to the genuineness of Islamic financial practices
A Brief Overview of Islamic Finance: From Madinah Market to Wall Street
No full textMany lessons have been learned by the global financial system at the aftermath of the Global Health Crisis (GHC), which could last till the financial crisis occurred in 2008–2009 (global financial crisis [GFC]). As such, the system started facing the deep-rooted questions about regulatory reforms. Amidst a perilous situation, Islamic finance (IF) had demonstrated clear evidence of
strong muscles into something that countries appreciate as the tool for money intermediation. It constitutes a brief introduction to the way Islamic Financial System or IFS (1) came forth in the past and (2) continues nowadays. The paper starts with the stating the maqasid al-Shari’ah (goals of the Shari’ah),which are the fundamental objectives of the legal system in Islam. Then, it highlights the key concepts, unique features, andmodes of financing that are unique within the IFS. The integration of Islamic financial institutions (IFIs) into the global economy is covered and IF as well as global financial dynamics at large discussed with the closing comments mirroring IF complexity on the background of global economy. This segment alone has posted very significant gain of almost US6.7 trillion by 2027 – a clear indication of its outreach and accessibility to all
The Future of Islamic Finance: From Shari’ah Law to Fintech
No full textIslamic finance has witnessed a meteoric ascent in recent decades, cementing its status as a prominent player within the global financial sphere. Diverging from traditional financial systems, Islamic finance operates on the tenets of Shari'ah law, which emphasizes principles such as social equity, risk-sharing, and ethical investing. Although Islamic finance's appeal is evident within the Muslim community, its ethical and socially responsible investment options have begun to entice non-Muslims as well.
Edited by Edib Smolo and Mohamed Mahees Raheem, this exhaustive collection presents an all-encompassing account of the current status of Islamic finance, accentuating its ethical, technological, and sustainable facets. The work is divided into four distinct parts which encompass the origin and evolution of Islamic finance, the underlying principles of Islamic finance and the primary disparities between Islamic finance and conventional financial systems, as well as the future of Islamic finance. Moreover, the collection explores the assimilation of Islamic finance principles into modern financial systems and the influence of Muslim scholars on present-day economic theories. The work emphasizes the significant contribution of Islamic finance in promoting sustainable development and social prosperity and underscores the incorporation of Islamic finance into the Sustainable Development Goals (SDGs). The work delves into the prospects and obstacles associated with the amalgamation of fintech and digital currencies into the Islamic finance sector and highlights the potential of green and sustainable finance in the digital era.
This edited collection is designed for a wide range of professionals encompassing practitioners, policymakers, researchers, and students who are intrigued by the mounting significance of Islamic finance and its potential for the global financial sphere.
- …
