Islamic Finance In The Modern Era

This book focuses on recent developments in financial technology: specifically, how FinTech affects the Islamic finance industry. It examines the challenges of Shariah compliance and explores opportunities for riba-free finance. The book describes contemporary FinTech solutions, investigating their relation to Islamic financial institutions. It outlines the current status of Islamic FinTech, arguing that it can provide Shariah-compliant innovative financial services to bridge the gap and compete with or complement conventional finance. Islamic FinTech can play a transformational role in making Islamic finance more accessible to a wide range of audiences and can also support the SME sector, which has been significantly impacted by the fallout of the COVID-19 pandemic. First, the book addresses thematic issues in Islamic finance, including its role in poverty eradication, elevating SMEs, and the Islamic digital economy. Second, it examines Shariah-compliant instruments in Islamic finance. The final part encompasses the risk profile of Islamic finance products and explores mitigation strategies. The book simultaneously presents theories, practice, and key issues, introducing new ideas and perspectives to the Islamic banking and financial community. The primary audience for the book will be researchers and scholars of Islamic economics and finance, and it will also appeal to practitioners and regulatory bodies.

The edited collection offers a comprehensive and intricate exploration of Ottoman cash waqfs, extending its scope from the early modern era to the onset of the twentieth century. It delves into the historical evolution of these private Islamic financial institutions, shedding light on their enduring influence and drawing insightful parallels with both contemporary Middle Eastern and European financial systems. Leveraging newly uncovered data spanning various regions of the Ottoman Empire, this work scrutinizes the dynamic functions of waqfs, revealing their significant imprint on today's financial paradigms. It advances existing scholarship by employing quantitative methodologies and systematic analysis of these emergent datasets, facilitating a sophisticated, longitudinal study of cash waqfs within the broader spectrum of historical interest rate trends and global credit markets. The chapters trace the transformation of waqfs from entities primarily holding immovable assets to those managing movable assets (cash waqfs), delineating their role in generating revenue for diverse purposes. These encompass funding state debts, fostering infrastructure development, and extending microcredit to economically marginalized segments of society. Additionally, the book explores the challenges and failures encountered in the transition of financial institutions during the Ottoman era, particularly in the context of the emergence of large public banks. The concluding segment of the book offers a comparative analysis of financial systems across various countries, including the shift from private to public banking in Italy, and contemplates the potential applicability of waqf models in contemporary microcredit initiatives and sustainable development strategies. This volume will appeal to scholars of financial history, economic history, Ottoman studies, and Islamic finance.

This book provides researchers and students with an understanding of the basic legal tenets of the Islamic finance industry, studying the real economic effects of those tenets using the tools of the modern economic theory. Split into four parts, the book begins with an introduction to the history and a legal framework for Islamic banking, covering typical Islamic financial products such as Sukuk and Takaful and examining the structure of Islamic financial institutions. It then analyzes and discusses the Miller-Modigliani Theorem, which is of direct relevance to Islamic banks which are prohibited to charge interest and often have to rely of profit-loss sharing agreements. Part III of the book introduces the reader to modern mechanism design theory, paying particular attention to optimal contracting under hidden action and hidden information, and final part of the book applies the tools of economic theory to understand performance of Islamic financial institutions such as Islamic banks and Takaful operators. Islamic Finance in Light of Modern Economic Theory brings together all the necessary technical tools for analyzing the economic effects of Islamic frameworks and can be used as an advanced textbook for graduate students who wish to specialize in the area, as a reference for researchers and as a tool to help economists improve the design of Islamic financial institutions.

A detailed look at the fast-growing field of Islamic finance and banking The guiding principle of Islamic finance has existed throughout Islamic history, yet modern Islamic banking has been around for a relatively short period of time. Author Amr Mohamed El Tiby is an expert in this field, and with this new book, he reveals how you can benefit from the use of Islamic banking strategies in your financial endeavors. Engaging and accessible, Islamic Banking shows the impact this approach has made on conventional banking since the 1950s, and why it's such a big player in the current market. It offers a unique look at various aspects of this field, including the salient features of Islamic banking that distinguishes it from non-Islamic banking, the development of the regulatory bodies and supervisory agencies that support the Islamic banking system, and much more. It also explores the nature of risk in Islamic banking and the issues of capital adequacy, corporate governance, transparency, and risk associated with Islamic banking. Discusses the history and development of Islamic finance Offers straightforward strategies for implementing Islamic finance into your business activities Sheds light on the effect of the global economic crisis on Islamic banks versus conventional banks Filled with in-depth insights and expert advice, this detailed analysis of Islamic finance will help you gain a firm understanding of how effective this proven approach can be.

The objective of organizing economic activities in any nation is the production of products and services to satisfy human wants. In the modern era, however, where division of labor and specialization are on the rise, those who produce products and services are not typically the same as those who consume or use them. Consequently, it is necessary to substitute one commodity for another. Barter required a 'double coincidence of desires'; B needed to possess both what A desired and what A could offer in exchange. This arrangement restricted the types of transactions that could be conducted, occupied additional time that could have been spent on production, and impeded the specialization of production. The limitations that the barter system placed on human ambitions lead to the evolution of money.

" ... Seeks to contribute to the existing body of work in the area of Islamic finance through examining the extent of divergence in practice of Islamic financing from the traditional Shari'ah in the Australian context. The author makes a discursive analysis of the regulation of Islamic finance in Australia in terms of (a) the financing instruments used, (b) certainty of transactions between participants in the system, and (c) institutional risk management of Islamc financial institutions."--Back cover.

In this extensively updated third edition, Hans Visser explores the ideas and concepts that drive and shape Islamic finance. This incisive book reviews the products, institutions and markets offered by Islamic finance in the modern marketplace, offering a critical discussion of the ways in which fiscal and monetary policy can be adapted to Islamic financial institutions. Visser offers new directions for economics and finance students, as well as students of Islamic finance and Islam studies more broadly.

Can Islamic finance save the global system? Islamic Finance and the New Financial System describes how the adoption of Islamic finance principles in future regulatory decisions could help prevent future shocks in the global financial system. Using illustrations and examples to highlight key points in recent history, this book discusses the causes of financial crises, why they are becoming more frequent and increasingly severe, and how the new financial system will incorporate elements of Islamic finance – whether deliberately or not. With an introspective look at the system and an examination of the misconceptions and deficiencies in theory vs. practice, readers will learn why Islamic finance has not been as influential as it should be on the larger global system. Solutions to these crises are thoroughly detailed, and the author puts forth a compelling argument about what can be expected in the future. Despite international intervention and global policy changes, the financial system remains in a fragile state. There is an argument to be made about integrating Islamic finance into the new system to facilitate stronger resilience, and this book explains the nuts and bolts of the idea while providing the reader with a general understanding of Islamic finance. Understand the key principles of Islamic finance Examine the history of the current financial system Discover how Islamic finance can help build a new debt-free economy Learn how Islamic finance theory doesn't always dictate practice Although Islamic finance is a growing market, it is still a foreign concept to many. Those within the Islamic finance circles wonder why the system has yet to gain broader appeal despite its ability to create a strong and well-balanced economy. Islamic Finance and the New Financial System provides clever analysis and historical background to put the issues into perspective.

With advancing technologies like distributed ledgers, smart contracts, and digital payment platforms, financial services must be innovative in order to remain relevant in the modern era. The adoption of financial technology affects the whole Islamic financial industry as well as the economic stability of a globalized world. There is a need for research that seeks to understand financial technology and the regulatory technology necessary to ensure financial security and stability. Impact of Financial Technology (FinTech) on Islamic Finance and Financial Stability is an essential publication that examines both the theory and application of newly-available financial services and discusses the impact of FinTech on the Islamic financial service industry. Featuring research on topics such as cryptocurrency, peer-to-peer transferring, and digital wallets, this book is ideally designed for researchers, bank managers, economists, analysts, market professionals, managers, executives, computer scientists, business practitioners, academicians, and students seeking coverage on how the latest in artificial intelligence, machine learning, and blockchain technology will redesign Islamic finance.

Get up to speed quickly on the world's fastest growing financial sector The Islamic Finance Handbook: A Practitioner's Guide to the Global Markets is the definitive report for the Islamic finance industry. Written by the industry's leading practitioners, the book provides a country-by-country breakdown of the current state of the Islamic market, including league tables by region and by country. Relevant case studies are used throughout to illustrate the practical aspect of the information presented. Organized for easy navigation, each chapter features sub-sections that allow instant comparison between countries in a specific area of interest. The Islamic finance industry is the world's fastest growing sector, valued at over U.S. $1.3 trillion by the UK Islamic Finance secretariat, with an annual growth of 24% for the past five years. To compete globally, practitioners need a true understanding of key markets within the industry. The Islamic Finance Handbook paints a clear picture of where each country stands in its development and role within the market, and provides a straightforward comparison between markets. Features include: Current macroeconomic and microeconomic conditions Regulatory and political situations Recent transactions, key participants, and the investor climate Real-world cases, as opposed to speculative scenarios The book places a clear focus on current conditions versus past performance, and on practical applications versus theoretical speculation. Each chapter is authored by a leading practitioner from within each country, allowing a true glimpse inside the day-to-day workings of the Islamic markets. For finance professionals who need to get up to speed on this rapidly growing sector, The Islamic Finance Handbook: A Practitioner's Guide to the Global Markets is a clear, comprehensive guide.