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Chachi, Abdelkader. "Islamic banking." Thesis, Bangor University, 1989. https://research.bangor.ac.uk/portal/en/theses/islamic-banking(31789e8c-aafc-402e-8c3e-3ef8d8e1a0fa).html.
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ement among economists as to why interest should be paid, it was almost unanimously held by most if not all economists that interest is necessary for banking and consequently necessary for financial and economic development and that any religion, like Islam, that prohibits interest, is an obstacle to economic growth and development. This view was not exclusively held by Western economists who may not know much about Islam, but even by some Muslim thinkers who, repeating the controversial arguments justifying interest, claimed that there is no other way to develop except to leave the religion of Islam aside or at least its economic and political aspects because it stands in the way of progress and development. However, there were some other Muslim scholars who were not so convinced of the Western and pro-Western idea that interest is a necessary component of any financial and economic development and were convinced that if Allah has forbidden interest then there must be something wrong with it and when He allowed trade and PLS (Profit and Loss Sharing) system of finance as alternatives, then these must, perhaps, lead to the achievement of greater financial and economic development 'without tears' (Kahf 1978). They sought in the Koran and Sunnah a way of doing banking and encouraging development that is not only complying with Shariah but that may lead to a more just and more beneficial way of development. They dug into the historical practices of the Prophet Mohammed (PBUH), his companions and the early followers and found that the alternatives, to interest, that were acceptable to, maintained and encouraged by, Islam, are trade (profit) and the PLS system which were practiced long before the rise of Islam, so they just applied the principles to today's banking practices and called it 'Islamic Banking'. This study aims to show that interest is not a necessary component of banking, as was widely held before, and that Islam, by prohibiting interest and permitting profit and Profit sharing as alternatives, is not an obstacle to, but a promoter of, economic growth and development with social justice. This study also attempts to distill and refine the theoretical bases of Islamic Banking. It critically surveys and discusses the different theories that have been advanced to justify interest and profits and compares the functions and institutions of the Islamic Financial and Banking Systems with their Interest-Based counterparts. It also discusses the likely impact of the Profit and Loss Sharing (PLS) system, and empirically analyses the performance of some of the oldest Islamic Banks vis-a-vis the performance of the Interest-Based Banks of the same countries. The empirical analyses undertaken showed that Islamic banking is more appropriate and more relevant to the economic growth and development of the Muslim World. Despite the fact that they are operating in hostile and non Islamic environments, the existing Islamic Banks have managed to mobilise substantial amounts of deposits and contributed greatly to the finance of many economic sectors and projects of the countries they are working in.
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Karadöl, Ismail. "Islamic banking : Aternatives Bankensystem /." München : GRIN Verlag, 2008. http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&doc_number=016973872&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA.
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Ahmad, Abu Umar Faruq, University of Western Sydney, College of Law and Business, and School of Law. "Islamic banking in Bangladesh." THESIS_CB_LAW_Ahmad_A.xml, 2002. http://handle.uws.edu.au:8081/1959.7/247.
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This study is primarily concerned with the theory of Islamic banking and its practice in Bangladesh, and shari’ah and its four sources forming the basis of Islamic banking are discussed at length. The research seeks to: analyse the theoretical foundations of Islamic baking and practice in Bangladesh; examine areas of similarity and differences between the structure and practices of Islamic banking and conventional banks; and identify the problems, challenges and prospects of Islamic banking in Bangladesh. The dissertation examines primary and secondary sources and draws on fieldwork in Bangladesh and the author’s personal experiences. The study undertaken shows that over the years there has been an expansion of Islamic banking in Bangladesh. Islamic banks are competing successfully with their conventional counterparts in an environment where rules, regulations and regulatory bodies are designed to facilitate banking based on interest. At the same time it has become apparent that the profit and loss sharing framework, which is one of the cardinal principles of Islamic banking, has yet to take deep root. The current profitability of Islamic banks is often maintained by products and services, which on closer analysis resemble broadly the products of conventional banking. It is thus suggested that more in depth research should be undertaken by Islamic bankers and scholars to study products and services of conventional banking with a view to adapting them successfully to the tenets of shari’ah.Master of Laws (Hons)
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Ahmad, Abu Umar Faruq. "Islamic banking in Bangladesh /." View thesis, 2002. http://library.uws.edu.au/adt-NUWS/public/adt-NUWS20030723.130611/index.html.
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Thesis (Master of Laws (Hons.)) -- University of Western Sydney, 2002."A thesis submitted in fulfillment of the requirement for the degree of Master of Laws (Honours)" Bibliography : leaves 215-221.
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Björklund, Iréne, and Lisbeth Lundström. "Islamic Banking - An Alternative System." Thesis, Kristianstad University College, Department of Business Administration, 2005. http://urn.kb.se/resolve?urn=urn:nbn:se:hkr:diva-3145.
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Islamic banking is an investment and financing system which expands globally. The Islamic banks have only been established for some 30 years but the banking system is based on long-going traditions within Islamic finance. The system is founded on ethical values and emphasises the well-being of society as a whole.
Islamic banking is different from conventional banking in most aspects, since its close tie to religion is very important. The system is not based on interest, as it is prohibited in Islam. Instead Islamic banks offer various kinds of accounts and a range of financing alternatives all complying with the Islamic Law – Shari’a. To work according to Shari’a is crucial for the banks and their activities are controlled by a special Religious Supervisory Board working within the bank.
The implementation of the Islamic banking system varies to some extent between Islamic countries. It has been influenced by its connections to politics of and the history in the countries where the system operates. As a result to the variations between the states’ implementation, the need for harmonisation increases as the expansion of Islamic banks continues. Several organisations work to achieve international standardisation and harmony to make the banking activities more transparent and attractive. The achievement of harmonisation as well as the performance of the banks is crucial for the future of Islamic banking.
The dissertation is based on extensive literature review and a personal interview with a professional within an Islamic bank in Lebanon.
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Ashrati, Mustafa. "Islamic banking Wertevorstellungen - Finanzprodukte - Potenziale." Frankfurt, M. Frankfurt-School-Verl, 2007. http://d-nb.info/986632171/04.
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Ashrati, Mustafa. "Islamic Banking : Wertevorstellungen - Finanzprodukte - Potenziale /." Frankfurt am Main : Frankfurt School Verl, 2008. http://www.gbv.de/dms/zbw/552461903.pdf.
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Rabooy, M. E. M. S. "Islamic banking in theory and practice." Thesis, University of Exeter, 1988. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.234185.
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Gad, Samar. "Essays on Islamic finance and banking." Thesis, De Montfort University, 2017. http://hdl.handle.net/2086/17602.
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Islamic banking and finance have received a considerable attention from academics and practitioners after the global financial crisis. Drawing insights from the theoretical and empirical studies about the resilience and the relative stability of Islamic financing alternatives - compared to their conventional peers- during turbulent economic and market conditions, I found that Islamic alternatives are not as less risky and stable as previously presented. This thesis makes a contribution to the asset management literature by examining whether Shari'ah compliant exchange traded funds (ETFs) have potential diversification benefits to a volatile portfolio of investments in emerging markets. The portfolio consists of three asset classes: conventional and fixed-income securities in emerging markets and Shari'ah compliant equity. I utilise a dynamic optimisation strategy to capture the time-variability in correlations between Islamic ETFs and other ETFs and find the optimal portfolios accord-ingly. I back test the results by using a static optimisation strategy and estimating optimal portfolios over two sample periods. The results are new to the literature, since previous empirical evidence is either comparing Islamic and conventional equity or Islamic and conventional bonds using static asset allocation strategies. Furthermore, this thesis contributes to the literature by taking a holistic approach and analyses the role of Islamic banks on both the micro and macro levels. I examine the effect of Islamic banks' financial distress on other financial institutions and the financial system in 10 Muslim majority countries. The research sample comprises 352 conventional and Islamic financial institutions. I do not consider only Islamic banks' specific characteristics and macroeconomic variables, but I also take in consideration the financial linkages and the spillover effects of financial institutions' distress. This research is pivotal, because it fills a research gap when it comes to identifying the systemic relevance and role of Islamic banks in financial systems. Previous research has adopted a top down approach and has identified the effect of the system on Islamic banks. Given the liter-ature about increasing business risks in the Islamic banking sector, I hypothesise that Islamic banks contribute to systemic risk. In addition, I identify whether the effect of Islamic banks' distress on the system is due to the change in their business risks over time. The findings of this thesis are new to the literature and provide implications of great importance. Institutional investors should consider the religion effect when they manage their assets, given the evidence regarding the outperformance of Shari'ah compliant equity relative to their conventional peers. They should also be cautious when using dynamic strategies, because they can be more costly to apply specially in volatile markets such as emerging markets and during crisis periods. For central banks and regulator, they should consider Islamic banks as genetically modified conventional banks). If Islamic banks and financial authorities did not address the routes of inefficiency, insolvency risk, and withdrawal risk in Islamic banks, they will continue to contribute to financial systems' distress.
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Abedifar, Pejman. "Issues in islamic and conventional banking." Limoges, 2013. http://aurore.unilim.fr/theses/nxfile/default/38ef8099-4bde-4264-b3aa-a882f13e4f29/blobholder:0/2013LIMO1008.pdf.
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This dissertation comprises three chapters. The first chapter explores risk and stability features of Islamic banking using a sample of 553 banks from 24 countries between 1999 and 2009. The results show that small Islamic banks have lower credit and insolvency risks than their conventional Counterparts. Little evidence is found to support that Islamic banks charge rents to their customers for offering Sharia compliant financial products. Moreover, the loan quality of Islamic banks is less responsive to domestic interest rates compared to conventional banks. In the second chapter, using quarterly data of 7,578 U. S. Community banks between 2003 and 2010, the impact of seven non-interest income businesses on bank lending is studied. The findings show that for banks with total assets above100 million non-interest income activities influence credit risk and loan portfolio compositions. Banks which emphasize fiduciary and life insurance businesses appear to have a lower credit risk. Moreover, a greater reliance on loan servicing is associated with lower lending-deposit spreads. The results provide little evidence to support whether cost complementarity can explain the joint production of non-interest income and lending. The third chapter analyses whether the coexistence of Islamic banks alongside conventional banks has any significant influence on the size and quality of the banking system and economic growth. The possible impact of Islamic banking presence on the performance of conventional banks is also examined. 22 Muslim countries with a dual banking system during the 1999-2009 period are studied. The results show a positive relationship between the market share of Islamic banks and savings mobilization. The operation of more efficient Islamic banks improves credit allocation across private and Governmental sectors and reduces lending-deposit spreads. Moreover, a larger market share of Islamic banking is associated with lower credit risk and cost inefficiency, but higher lending-deposit spreads of small conventional banks in certain countriesCette thèse est composée de trois chapitres. Le premier chapitre explore les problématiques de risque et de stabilité de l'activité des banque Islamiques en utilisant un échantillon de 553 banques réparties dans 24 pays entre 1999 et 2009. Les résultats montrent que les banques islamiques de petite taille ont des risques de crédits et d'insolvabilité plus faibles que leurs homologues dans la banque traditionnelle. Il existe en revanche peu d'éléments pour soutenir l'existence de charges imposées par les banques islamiques en contrepartie de leur offre de produits compatibles avec la Sharia. En outre, l'étude montre que la qualité des crédits est moins sensible aux variations des taux d'intérêts domestiques pour les banques islamiques que pour les banques traditionnelles. Le second chapitre utilise des données collectées trimestriellement pour 7,578 banques Américaines entre 2003 et 2010 dans le but d'étudier l'impact de sept activités distinctes, sources de revenus hors intérêts, sur l'activité de crédit bancaire. Les résultats montrent que les activités sources de revenus hors intérêts influencent à la fois la composition du portefeuille de prêts et le risque de crédits des banques disposant d'un total de l'actif dépassant les 100 millions de dollar. Les banques qui privilégient les activités d'assurances vies et fiduciaires présentent des niveaux de risques de crédits plus faibles. De plus, une dépendance accrue à l'activité d'octroi de crédit entraîne des marges réduites sur l'activité de crédit. Il est cependant difficile de se prononcer sur une éventuelle complémentarité des coûts qui expliquerait la double tenue d'activités hors d'intérêts et d'activités de crédits. Enfin, le troisième chapitre de la thèse analyse la coexistence des banques Islamiques aux côtés des banques traditionnelles et tout particulièrement son influence sur la croissance économique et sur la qualité et la taille du système bancaire. Ce chapitre s'intéresse aussi à l'éventuel impact de la présence des banques Islamiques sur les performances des banques traditionnelles. L’étude porte sur 22 pays musulmans présentant les deux types de banque au sein de leurs systèmes bancaires sur la période 1999- 2009. Les résultats font apparaître une relation positive entre la part de marché des banques Islamiques et la mobilisation de l'épargne. La présence des banques Islamiques les plus efficientes améliore l'allocation de crédits entre les secteurs privés et publics tout en réduisant les marges d'intérêt sur les crédits. En outre, les résultats font état d'un risque de crédit et d'inefficiences-coûts plus faibles lorsque la part de marché des banques Islamique est plus élevée, au prix en revanche de marges de crédits plus élevées appliquées par les banques traditionnelles de taille modeste dans certains pays de l'échantillon
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Hamidi, M. Luthfi. "A Framework for Islamic Social Banking." Thesis, Griffith University, 2021. http://hdl.handle.net/10072/401347.
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Despite recent significant economic downturns, Islamic banking (IB)—banking activity that complies with Shari’ah (or Islamic law)—remains among the fastest growing financial industries in the world. However, a recurrent criticism of IB is that notwithstanding its primary religious purpose and unique products and services, it tends to follow conventional banking in prioritising profits over its delivery of social outcomes. This is an apparent contradiction with core IB religious values of promoting social justice and serving community interests. Among other possible reforms, some critics recommend addressing this more fundamentally through institutional changes, either by internalising selected existing social banking (SB) practices or by establishing a new type of IB dedicated to social purposes, or so-called Islamic social banking (ISB). Unfortunately, no existing framework is available that would serve as a basis for these reforms and it is not clear even whether they are truly warranted. To address this, this thesis begins by examining the theoretical justification for ISB. The thesis then investigates whether IB is actually failing to deliver social outcomes as part of its core purpose. Finally, the thesis considers the prospects for ISB in Indonesia as a case study, and presents a possible banking framework for a yet-to-be-created ISB system.
The first part of the thesis discusses the general development of IB and SB, including their conceptual sources, principles, products, and growth. Given that Indonesia serves as the context for assessing social outcomes in IB, the thesis first compares IB and conventional banking in Indonesia in term of structure, regulation, supervision, and performance. It then provides through a literature review the theoretical underpinnings of ISB. Employing comparative research, the thesis then compares IB and SB. The findings indicate that both types of banking institutions share similar 3P principles (Prosperity, People, and Planet) or the so-called triple bottom line (TBL) in their operations. The thesis then extends the 3P principles to incorporate an additional P (for Prophet) to reflect the ethical guidance of Islamic values. This yields quadruple bottom line (QBL) principles that the thesis proposes as a suitable framework for ISB, including a mathematical formulation to calculate QBL performance. This allows banking practitioners, regulators, and supervisors to assess the social outcomes of Islamic banks through calculating their reactive, defensive, accommodative, and proactive (RDAP) responses.
The second part of the thesis comprises four related empirical analyses of ISB. The first analysis investigates whether social outcomes are a concern for IB in Indonesia. Initially, the thesis identifies key concepts for assessment indicators from four different sources, comprising the existing IB literature, the KLD Index of corporate social performance, the Sustainable Development Goals (SDGs), and the Environment Social Governance (ESG) Scorecard. The results suggest six relevant traits adequately describe IB’s broad social objectives, including religiosity, the environment, society, governance, employees, and customers. Then, using 12 Islamic commercial banks (ICB), 7 Islamic banking units (IBU), and 7 Islamic rural banks (IRB) operating in Indonesia during the period 2015–16 and employing a content analysis, the thesis reveals that social failure is evident in IRBs and half of the ICBs, but only one in the seven IBUs. The thesis concludes that social outcomes are not yet a sufficiently serious concern for IBs in Indonesia, but that social objectives and outcomes have both recently increased in importance.
The second analysis investigates the prospect for the establishment of ISB in Indonesia. The thesis surveys 506 IB stakeholders across six Indonesian provinces and conducts in-depth interviews with 10 Islamic banking experts working in Indonesia. The findings reveal that 42.9% of respondents consider that IB in Indonesia is socially defensive (doing the least that is required in terms of social outcomes), while 6.9% believe that it is reactive (doing less than that required). Of the remaining respondents, 34.8% consider the social performance of IB as accommodative (doing all that is required), and 15.4% see it as proactive (doing more than is required). Most respondents (53%) suggest improvement by combining corporate social responsibility and the existing zakat–waqf system. Only a minority (7.1%) appear to be in favour of the establishment of ISB, whose main feature would be to design an alternative to collateral so that low- and middle-income customers could more readily access bank financing.
The third empirical analysis uses the earlier survey data and tests the applicability of the 4Ps (Prosperity, People, Planet, and Prophet) developed in the first conceptual and theoretical part of the thesis. Multiple regression results suggest that the models created are all highly significant and well reflect the broad stakeholder perspectives on bank performance. Of the four elements, the thesis finds that stakeholders rank Prosperity first, followed by Prophet and then Planet. Case studies of two Islamic banks currently operating in Indonesia and Malaysia, Bank Muamalat Indonesia (BMI) and Bank Muamalat Malaysia Berhard (BMMB), strengthen the application of the new Prophet dimension as a way for Islamic banks to improve their social performance, particularly during periods of financial distress and in response to episodes of unethical behaviour.
In the final empirical analysis, the thesis employs the same survey, but with a different method to assess whether the additional 4P dimension, namely, Prophet, can be justified. The approach adopts 31 constructs from Chapra’s corollaries of Maqasid al-Shari’ah, to be analysed using categorical principal component analysis (CATPCA). Based on the CATPCA result, the thesis confirms that the four dimensions of Prosperity, People, Planet, and Prophet adequately represent these constructs. The approach then validates 13 constructs useful for developing a QBL performance index for sustainable IB. An application to ten selected global Islamic banks reveals that only half of the sample banks are sufficiently sustainable. Overall, Islamic banks perform poorly in terms of Planet (38%) and People (41%) while doing relatively better on Prosperity (53%) and Prophet (63%).
The thesis makes at least three important contributions to the existing IB literature. First, it is the first to theoretically provide and empirically test a possible framework for the future development of ISB, in either Indonesia or elsewhere. Second, the thesis also undertakes a pioneering assessment of the prospects for the establishment of ISB in Indonesia. Finally, the thesis developed a novel and practical QBL Index useful for assessing the sustainability of IB. In turn, these provide at least three main implications for industry policy and practice. First, despite the improving social outcomes of IB in Indonesia, as considered favourably by stakeholders of all kinds, it remains unimpressive. Improvements are required particularly in the areas of the environment, customer benefits, supporting disadvantaged groups, and reaching rural areas. The thesis recommends regulators promote policies and incentives that encourage existing and new Islamic banks in Indonesia to deliver social outcomes. Second, given the Prophet dimension is a central parameter in the QBL framework, the thesis encourages IB practitioners to internalise religiosity in their corporate culture, and for regulators to consider adjusting the existing performance metrics by inserting the religiosity dimension as a point of assessment. Finally, the thesis encourages regulators to provide relevant policies that respond to the QBL assessment reported in this thesis.Thesis (PhD Doctorate)
Doctor of Philosophy (PhD)
Dept Account,Finance & Econ
Griffith Business School
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Kumati, Amal. "Commercial banking in Libya and the potential for Islamic banking." Thesis, Durham University, 2008. http://etheses.dur.ac.uk/1341/.
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Islamic banking and finance is considered a novel way of conducting financial matters for growth and social inclusion. It has expanded in an unprecendented manner since its initial appearance in the mid-1970s. Since then, Islamic banking has earned recognition worldwide which has paved the way for a rapid growth in the Islamic banking services industry. With this background, this study focuses on the potential for Islamic banking in Libya. Since the 1970s the Libyan banking sector has witnessed remarkable changes especially after the state introduced the nationalisation programmes and socialist system. Under public ownership, the banking industry, however, has underperformed due to various problems such as the high level of non-performing loans. Therefore, the state has recently initiated a reform and deregulation policy to enhance the performance of the sector. This study aims to analyse the developments which have taken place in the Libyan banking sector not only to evaluate performance but also to discuss the reasons for underperformance. However, importantly, this research explores the potential demand for Islamic financial services in Libya by also questioning relevant issues. The methodology of the study includes a literature review, data collection, analysis of available banking system statistics and semistructured interviews with experienced bankers. The empirical research in this study is based on a survey conducted in the city of Benghazi, one of the largest financial centres in the country. The empirical findings on Libyan banking demonstrate that the sector is plagued by problems which weaken its con 1 to the economy. The second part of the empirical results proved that there is a significant demand for Islamic banking in Libya. Although the respondents and interviewees were less familiar with Islamic banking products, services and principles, the study has proved Islamic banking in Libya is developing tangible roots.
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Muscat, Michaela. "Banking on the divine : everyday Islamic banking practices in Malaysia." Thesis, London School of Economics and Political Science (University of London), 2015. http://etheses.lse.ac.uk/3180/.
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Islamic banking, a niche financial sector that has captured the imagination of the financial elite and ordinary consumers alike, is unique in its regulation through the shariah. Primarily, it presents an added-value derived from its prohibition of riba (interest) in favour of profit from trade (al Bay) or leasing (ijarah). This thesis aims to explain Malaysia’s success in promoting Islamic banking products to a critical mass of consumers. More specifically, it seeks to explain the development and growth ineveryday Islamic banking practices amongst the Malay community in Kuala Lumpur. The thesis is based on a sociological framework that does not aim to explain the development and growth of Islamic banking in terms that are principally about religion. I argue that the development of Islamic banking in Malaysia is the result of a top-down strategy driven by the economic and political interests of Malaysia’s ruling elites. Following the crisis of trust in the political-economic model of development deployed up to the crisis of 1997-1998, Islam’s vast repertoire of ideas, language and symbols are a powerful and dexterous foundation of a strategy that simultaneously problematises ‘conventional’ banking and offers an alternative course through Islamic banking. Nevertheless, Islamic banking practices are not given and cannot be taken-for-granted. Thus, in seeking to understand why increasingly consumers trust Islamic banking’s promise of economic advantage with the added value of religious compliance, the study seeks to interpret Islamic banking practices from the perspective of the ‘ordinary’ consumer. Everyday Islamic banking practices are viewed in this thesis, as embedded within broader, historically determined, closely intertwined, social, economic, cultural and political circumstances. This study views the aforementioned circumstances that consumers find themselves in, on the one hand, and the banking practices they participate in, on the other, as interacting elements of a socially determinate whole. Trust, I suggest, is the common thread underpinning the everyday banking practices within the interacting elements of a socially determinate whole. Three ideal types that emerged from the data, the virtuoso, pragmatist and sceptic, are a used as a heuristic device to characterise the various interests driving trust in Islamic banking, and illustrate the heterogeneity of Islamic banking practices. More specifically, based on an analysis of the consumers’ account of their Islamic banking practices, the choice of Islamic over ‘conventional’ banking is based on two important factors. First, for those who perceive and are attracted to the added value of Islamic banking, trust in the shariah regulation and expertise, as underwritten by the state, is the first condition to their choice. Trust lubricates their choice by reducing complexity, mitigating risk and bridging the gap between knowledge and faith. Second, the personalised trust that characterises thick social ties bolsters confidence in Islamic banking. In rating Islamic banking as the most socially acceptable choice, family and peers are signalling confidence in the value and values of Islamic banking and are unwitting allies of the state and banks. Last, the study notes that shariah regulation has contradictory corollary effects: it is both functional and dysfunctional. Whilst it functions in enabling the growth of Islamic banking, it also contributes to social fragmentation within Malaysian society.
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Yuspin, Wardah. "Facilitating the growth of Islamic banking law and Islamic banking in Indonesia : new laws and new challenges." Thesis, University of Leeds, 2014. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.713882.
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The growth of Islamic banking and financial services (IBF) industry has generated considerable interest in the financial world in recent decades with no exception in Indonesia. The legal infrastructure for the development of IBF in Indonesia has been strengthened with the enactment of Islamic Banking Law No. 21 of 2008. The law includes two new arrangements that are expected to bring about changes in the IBF industry; namely Articles 55 and 68. In light of those articles, it is also essential to observe the development and practice of this industry in selected countries; namely Malaysia and Pakistan. Despite the difference of their legal systems (the practice of the Common Law Systems there as opposed to the Civil Law System in Indonesia), these two countries have been chosen for the resemblance of their IBF industry with the one developed, practiced and offered in. Indonesia. Particularly in Malaysia, the promulgation of the Central Bank Act 2009 and the Islamic Financial Services Act 2013 were aimed at enhancing its legal infrastructure that will not only protect its IBF industry but will ensure stability, growth and confidence of all players and stakeholders. Substantively, Article 68 deals with the Islamic window/ Islamic unit separation. It is quite natural to conclude that Window Model serves only as a transitory mechanism. Therefore, that model is mandated and/or limited to be a mere spun-off or temporary structure for IBF institutions from their parent banks before subsequently becoming a full-fledged institutions. Since this is mandatory, any Islamic window that violates this provision will be fined, or further, their licence will be revoked. Meanwhile in those particular countries this model is still allowed and can be adopted by conventional banks offering IBF services. However, the conventional banks will only be allowed to, offer IBF services once they have demonstrated their serious commitment to IBF and have a clear roadmap towards full conversion of their operations into a full fledged Islamic bank. Whilst Article 55 (1) affirms that the religious court is the institution authorised to settle dispute on matters concerning Islam and the economy, Article 55 (2), nonetheless, provides that if the litigants are in agreement, they can choose to refuse submission to the jurisdiction of the religious court jurisdiction and alternatively choose another forum such as district court to adjudicate the dispute. The selection and submission to another forum, such as the district court, can potentially bring about a conflict of authority and jurisdictions between the district courts and the religious courts. However, according to the decision of the Constitutional Court No.93PUU-X/2012 the Islamic financial disputes fall under the absolute competence of the religious court. While in those selected countries, the Islamic disputes are tried and heard before the jurisdiction of their civil courts, despite the fact that there is a designated civil court in Malaysia that will handle disputes relating to IBF. That choice of forum to render decision on this dispute raises the problem, since many judges who render decision on this case are in favour of the civil law rather than Shari'a (Islamic law). While the Islamic disputes are not merely commercial disputes but involves the questions of Shari matter(s). In this regards, a closer scrutiny on the Malaysian Central Bank Act 2009 will be useful since it provides for reference to the Shari'ah Advisory Council by the courts or arbitrators adjudicating matters relating to IBF disputes. With the rapid advancement of IBF industry and various products and services it offers, disputes are then inevitable. Premised on this realization, this thesis strongly examines and advocates that a proper and strong legal framework and infrastructure as well as substantial support of the legal fraternity are crucial prerequisites for a healthy advancement and significant growth of IBF industry. Therefore with the inclusion the Art 68 and 55 of the Islamic Banking Law, this industry is seen moved towards this advancement.
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Kabbara, Abdulrahman H. S. "Islamic banking : a case study of Kuwait." Thesis, Loughborough University, 1988. https://dspace.lboro.ac.uk/2134/6729.
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In the aftermath of the Islamic resurgence movement, the call for the abolition of interest and the introduction of profit and loss sharing schemes gained momentum. Islamic writers have concentrated on describing the operations of an Islamic bank in an interest based economy and others have outlined the principles and functions of the Islamic economy. However there has not yet been a comprehensive study dealing with the implications of abolishing interest in a specific country. Therefore the major objective of this thesis is to examine the possible introduction of interest free banking in Kuwait, its implications, operations, advantages and diyantages. It also focuses upon the transformation process necessary to bring about these required changes. The first chapter presents an overview of the Islamic economic system and its underlying principles; these are the cornerstone for any transformation from the conventional economic system to a new Islamic system. The second chapter focuses on Islamic banking, its methodology, objectives and main operations in theory and practice. The third chapter deals with the main features of the Kuwait economy. An emphasis is put upon the existing banking system and the role of the central bank in conducting its interest-based monetary policy. The thesis then describes the changes required in the current financing instruments employed by Kuwaiti banks in order to adapt to a new Islamic system. In this respect it is assumed that the current banking structure will remain intact. Stress is placed upon the changes required in the short, medium and long-term financing instruments used domestically. The central bank's changing role and the monetary policy implications of a new Islamic system are also analysed. The final chapter summarises the findings and recommendations of the thesis and the advantages and disadvantages of interest free banking with reference to Kuwait.
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Al-Fadhli, Mansour. "Financial performance of Islamic banking in Kuwait." Thesis, Loughborough University, 1998. https://dspace.lboro.ac.uk/2134/7995.
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The Kuwaiti economy has witnessed remarkable changes especially since the oil boom in the 1970s. Kuwait is one of the world's richest countries in terms of GNP per capita (WBA, 1997). However, the country has hitherto been entirely dependent on oil exports and as petroleum prices increased during the 1 970s, imports also increased. The government undertook a major industrial development program (such as manufacturing industries including cement and other building material, petrochemicals, plastic products and boats). With Iraq's invasion of Kuwait in the early 1 990s, much of the infrastructure of the country was ruined. Post-war Kuwait faced serious problems including shortages of food, fresh water, and electricity, oil well fires and the resulting environmental damage. It is vital for Kuwait to have a thriving and efficient financial system that helps meet the country's developmental and investment targets. The country has two types of financial institutions Islamic and conventional, both of which exist side by side. Both types of institutions take part in investing in the country to improve the infrastructure and industrial base of the economy. Therefore, a successful financial system can only bode well for the country as a whole. In this study, we evaluate the performance of Islamic banks by analyzing their financial indicators and comparing them with those of conventional, commercial banks. This will lead to a better appreciation of advantages and disadvantages of Islamic banking institutions, as well as their efficiency as compared to that of the conventional banks. For this purpose we conduct a case study of the Kuwait Finance House, which runs its activities according to Islamic principles, and also the National Bank of Kuwait, which is the leading conventional bank in Kuwait - comparing and assessing their structure and performance. Both case studies are carried out by examining the differences in their respective internal and external environments and the way they affect financial behavior; our hypotheses are: (1) Islamic financial institutions are on par with traditional (commercial) banking institutions in securing funds; (2) Islamic financial institutions are on par with traditional (commercial) banking institutions in performance and efficiency. (3) Clients' religious attitudes are not the only (or primary) reason behind the success of such institutions in securing funds; (4) legal restrictions imposed on such institutions do not constitute an obstacle against their ability to compete in the tough financial market. In the light of the above evaluation, the nature of the difference in the framework of assets and liabilities between the two types of banks is discerned. We also seek an understanding of the effect of the difference in the nature of revenues earned by both types of institutions - on its framework and management.
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Ahmed, Eltegani Abdelgader. "Islamic banking : distribution of profit (case study)." Thesis, University of Hull, 1990. http://hydra.hull.ac.uk/resources/hull:3752.
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An economic system based on the principles of the Islamic law is proclaimed feasible. Interest as an equivalent to Riba should be substituted. Profit-sharing financial institutions have been established. The research attempts to show how these institutions work, and what alternatives they rely on to substitute interest as a motivation for mobilising savings. The technique of investment of various deposits which are held in one pool, as practised by some Islamic banks, and the methods of determining each depositor's share in investment and in profit, are discussed. Profit generated from the investment is the alternative proposed to substitute interest. Risks surrounding investment environment and the difficulties embodied in the technique used to distribute profit are the major topics discussed. The research centres on a field study, following the case study approach, whereby methods for the distribution of profit used in three Islamic banks in the Sudan are explained in detail with illustrating numerical examples. A comparison between the various methods is made. The historical background to the establishment of Islamic banks is given as an introduction to the research. Furthermore, models of investment used in Islamic banking are explained and the difference between Islamic and conventional banks is shown. By way of introduction the concept of Riba in Islam is also discussed. Moreover, accounting postulates are scrutinised and verified from an Islamic perspective. A case study is made of FIBS and the models of finance used along with an empirical examination of its performance as the first and a leading Islamic financial institution in the Sudan, and as an example of Islamic banks. Other problems which arise as a result of introducing a profit-sharing technique are also assessed, classified and discussed. Among the recommendations drawn are investment in Limited Mudarabah, using different periods and values for Mudarabah certificates. Islamic banks should also concentrate on profit-sharing models of finance; the credit finance models used, although permitted, should gradually be abandoned.
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Riaz, Sadaf. "The case of islamic banking in Pakistan." Master's thesis, Instituto Superior de Economia e Gestão, 2018. http://hdl.handle.net/10400.5/17632.
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Mestrado em FinançasO objetivo deste estudo é explicar por que e quando o sistema bancário islâmico foi introduzido no Paquistão e como os governos paquistaneses estabeleceram e promoveram este sistema. Em 2001, o Banco do Estado do Paquistão emitiu critérios detalhados para a criação de bancos islâmicos. A política adotada pelo banco estatal descreveu que o sistema bancário islâmico deve ser promovido lado-a-lado com o da banca convencional. Como resultado desta política, o Al-Meezan Investment Bank Limited obteve a primeira licença para operar como um banco islâmico de pleno direito em janeiro de 2002. No Paquistão,o sistema de compartilhamento de lucros e perdas é apreciado.Neste trabalho, analisa-se o progresso realizado pelo Paquistão no desenvolvimento do sistema bancário islâmico. É digno de nota que o Paquistão, apesar de todos os seus problemas políticos, sociais e económicos, nunca interrompeu o processo de desenvolvimento do sistema islâmico de finanças e bancos no país. Também-se explica, brevemente, a introdução do Banco Islâmico e a sua importância no mundo atual.
The purpose of this thesis is to explain why and when the Islamic banking was introduced in Pakistan and how the Pakistani governments established and promoted this system. In 2001, State Bank of Pakistan issued detailed criteria for setting up of Islamic Banks. The policy given By the state bank described that the Islamic banking should be promoted side-by-side with the conventional banking. As a result of this Policy, Al-Meezan Investment Bank limited was issued the first license to operate as a full-fledged Islamic bank in January, 2002. In Pakistan, people appreciated Profit and loss sharing System. In this paper we analyze the progress made by Pakistan in developing Islamic banking system. It is noteworthy that Pakistan, despite all of its political , social and economic problems , never stopped the process of developing Islamic Finance and Banking system in the country.But still the Islamic banking is not developed according to true principles of Islam and this topic requires further research. This thesis also explains briefly the introduction of Islamic Banking and its importance in the present world.
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Bennasr, Nabil. "Islamic banks facing the conventional banking sector." Thesis, Université Côte d'Azur (ComUE), 2018. http://www.theses.fr/2018AZUR0004.
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Cette thèse analyse les conséquences de l’intégration d’un milieu bancaire conventionnel pour une banque islamique. Elle est composée de trois chapitres. Un premier traité de la conformité Sharia des banques islamiques. Cette conformité est assurée par un comité de supervision éthique. Nous détaillons le rôle et les tâches de ce comité de supervision éthique et montrons comment les contraintes réglementaires internationales ainsi que la pénurie éventuelle de personnels compétents pour alimenter ces sharia boards incitent la banque islamique à externaliser ce contrôle de conformité Sharia. En se proposant sur modèle théorique inspiré de Kornai, Maskin and Roland (2003), ce premier chapitre examine ainsi l'impact de l'externalisation de ce comité sur le business model de la banque islamique. Le deuxième chapitre est essentiellement empirique : nous comparons l'efficacité des deux modèles de banque, l’un internalisant (l’autre externalisant) le processus d’examen/ validation de la conformité Sharia. Pour procéder à cette étude empirique, nous examinons un échantillon d'une centaine de banques qui se divise en deux groupes de banques un premier qui externalise le contrôle de conformité Sharia et le deuxième l'internalise. Nous montrons que les banques sont plus efficaces lorsqu'elles externalisent ce processus de conformité. Finalement, un troisième chapitre traite la question de la création de liquidité au sein des deux banques, conventionnelle et islamique. Dans ce chapitre nous développons un modèle théorique inspiré de Diamond (2007) et nous comparons la création de liquidité de ces deux banques. Nous mettons en évidences les contraintes qui pèsent sur la banque islamique, elles se manifestent dans la structure du bilan des banques islamiques, un bilan qui présente un volume important d'actifs tangibles. On montre que la structure de ce bilan limite la possibilité pour les banques islamiques de concurrencer les banques conventionnelles et ainsi remet en cause leur capacité à intégrer un milieu bancaire conventionnelThis dissertation analyses the consequences of the integration of an Islamic bank into a conventional banking environment. The dissertation is composed of three chapters. The first examines the Islamic banks' compliance, which is ensured by a supervisory ethical committee. We examine the role and the tasks of this committee in detail, showing how international regulatory constraints, as well as a general lack of individuals with the required skills to sit on the Sharia boards, provide incentives for the Islamic bank to outsource the monitoring of Sharia compliance. Basing our study on a theoretical model, inspired by Kornai, Maskin and Roland (2003), this first chapter analyses how the outsourcing of this committee has an impact on the business model of the Islamic bank. The second chapter is largely empirical; we compare the effectiveness of two bank models, one in which the Sharia compliance validation process is internal, and one in which it is external. To test this empirical study, we analyze a sample of around 100 banks which are divided into two groups, one which outsources the Sharia compliance and monitoring and one which internalizes this process. We show that banks are more effective when they outsource the compliance monitoring process. Finally, the third chapter approaches the question of liquidity creation within two types of bank: Islamic and conventional. In this chapter, we develop a theoretical model inspired by Diamond (2007) and we compare the liquidity creation process in these two banks. We demonstrate the constraints that burden the Islamic bank, shown by the high volume of tangible assets in their balance sheets. We demonstrate that the structure of this balance sheet limits the possibilities for Islamic banks to compete with conventional banks, and thus brings into question their capacity to integrate a conventional banking environment
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Moin, Muhammad Shehzad. "Performance of Islamic Banking and Conventional banking in Pakistan : a Comparative Study." Thesis, Skövde : University of Skövde. School of Technology and Society, 2008. http://www.diva-portal.org/smash/get/diva2:113713/FULLTEXT01.
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Shaharuddin, Amir. "A study on Mudarabah in Islamic law and its application in Malaysian Islamic banks." Thesis, University of Exeter, 2010. http://hdl.handle.net/10036/107900.
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The contrast between the theory and practice of Islamic banking is generally acknowledged by many scholars. After more than three decades in operation, the rapid growth of the Islamic banking industry is, in reality being driven by the application of the debt-like contracts (e.g. murÁbaÎah and ijÁrah) rather than the profit and loss sharing contracts (e.g. muÃÁrabah and mushÁrakah). As the adaptation of the former contracts creates "unauthentic" Islamic financial products, many have questioned their compliance with sharÐÝah principles. The present study analyses this issue by examining the application of muÃÁrabah rules in Malaysian Islamic banking practices. It evaluates the extent to which the current practices fulfil the principles and the ethical framework of the muÃÁrabah contract as propounded by the classical jurists. The study also analyses the justifications of Malaysian sharÐÝah scholars for modification of the doctrine, adapting it to the modern banking business. The study found that the local sharÐÝah scholars have adopted an incoherent legal methodology when making their ijtihÁd. They can be very rigid, concentrating solely on the legal technicality and at the same time be very flexible, adapting an unregulated doctrine of maÒlaÎah. Therefore, some of their resolutions could be seen as contradictory to the rulings found in classical fiqh.
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Khorshid, Aly Abdul Rahim. "Islamic insurance : a modern approach : with particular reference to western and Islamic banking." Thesis, University of Leeds, 2001. http://etheses.whiterose.ac.uk/518/.
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Muslims are very concerned with the ethics of insurance and most non-Muslims find it difficult to understand the Muslim concern with the moral considerations which influence and restrict its acceptance in Islam. This thesis is concerned with insurance in the Islamic world and with an examination of some of the insurance practices in non-Muslim countries which are acceptable in most Islamic countries. The study considers Islamic law, interpretation and practice regarding insurance. The theoretical aspects covers the following : (1) Islamic religious foundations, which have a spiritual effect on all Muslim decisions (2) The examination of the Qudn and Sunna which provide the first two sources of Islamic law. (3) The prohibition of Ribä (usury) as incompatible with economic justice, also the objection by Muslims to Gharar (risk ) and Qimar (gambling), the legitimate grounds for making money, and achieving harmony between the material and the spiritual (4) Medieval Christian and Islamic doctrine regarding usury (5) The understanding and objectives of insurance within Islam and Islamic law (Shariri). The empirical aspect involves examining the following: (1) The Prophet Mohammad as a prophet and moral exemplar (2) The history and background of insurance in the Muslim world (3) Pr-modern and modern jurists views on insurance (4) Mutual insurance systems in the West (5) Case studies of the Islamic financial system The main contribution of this thesis is to the debate on Islamic insurance and its origins and to provide the theoretical foundations for an insurance system which reconciles Islamic law with certain forms of insurance services provided in the West. Through promoting the understanding of both systems, it ultimately aims to develop a constructive and profitable collaboration between them. Through the critical analysis of the principles and practice of insurance the study will address Muslim objections to insurance, even those of the most literal Muslim jurists, and seek to overcome them.
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Aldohni, Abdul Karim. "Islamic banking in the United Kingdom : is the current legal and regulatory framework capable of hosting an Islamic banking sector?" Thesis, University of Leeds, 2008. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.503262.
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Kazimov, Magsud. "Implication ways of Islamic Finance in the modern context." Master's thesis, Vysoká škola ekonomická v Praze, 2015. http://www.nusl.cz/ntk/nusl-206017.
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Thesis will be dedicated to analysis of background, environment and opportunities for the application of Islamic finance. The thesis will compare the structures of both conventional and religious banking. I will explain the core Islamic principles, financial instruments available and will describe key regulatory institutions. Description will include practical implementation examples from customer-bank perspective. After defining framework, I will discuss the practical implementation of Islamic finance in different environments. Legal factors concerned with application will be discoursed. The opportunities for Islamic finance towards following the current trends in not only Muslim countries will be analyzed. Moreover, criticism against Islamic finance will be answered by comparison of performance of both conventional and Islamic banks during the financial crisis of 2008.
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Abdul, Kader Radiah. "Performance and market implications of Islamic banking : a case study of Bank Islam Malaysia Berhad." Thesis, Durham University, 1993. http://etheses.dur.ac.uk/1510/.
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Terrell, Ronald G. "Islamic banking financing terrorism or meeting economic demand?" Thesis, Monterey, Calif. : Naval Postgraduate School, 2007. http://bosun.nps.edu/uhtbin/hyperion-image.exe/07Dec%5FTerrell.pdf.
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Thesis (M.A. in National Security Affairs)--Naval Postgraduate School, December 2007.Thesis Advisor(s): Looney, Robert. "December 2007." Description based on title screen as viewed on January 18, 2008. Includes bibliographical references (p. 77-80). Also available in print.
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Johnson, Katherine. "The Role of Islamic Banking in Economic Growth." Scholarship @ Claremont, 2013. http://scholarship.claremont.edu/cmc_theses/642.
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Islamic banking is currently one of the fastest growing segments of the financial market industry, operating in over 75 countries through 300 institutions. While past literature has established the development of financial institutions as a determinant of economic growth, research on the correlation of the diffusion of Islamic banking with economic growth is limited. This study seeks to add to the literature by empirically analyzing the economic growth determinative power of Islamic banks. Confirming past research, Muslim prevalence in a population is found to be the most significant determinant of the diffusion of Islamic banks. Using this exogenous instrument in 2SLS regressions, results show that Islamic banks are not significantly correlated with economic growth. Most notably, including the Islamic banking instrument affects the strength of beta-convergence. Basic Solovian specifications show that convergence occurs; countries with higher initial GDP per capita grow more slowly. After accounting for the intensity of Islamic banking, this effect becomes much less statistically significant, suggesting that some of the effect of convergence may operate through the propensity to adopt Islamic banking. Empirical analysis disaffirms the hypothesis that Islamic banks minimize the explanatory power of legal origin on economic growth due to their independent implementation of Shariah law; the results show that accounting for Islamic banks has no effect on the determinative power of legal origin. Finally, the correlation of Islamic banking and financial deepening is largely dependent on legal origin, resulting in negative effects for countries with British legal origin and positive for those with French legal origin.
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Faizullah, Mohammed. "Islamic banking : issues of governance, transparency and standardization." Thesis, London Metropolitan University, 2009. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.507090.
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Abdel-Haq, Mohammed Kayed. "The relationship between Islamic banking theory and practice." Thesis, Oxford Brookes University, 1993. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.332574.
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Alqahtani, Faisal. "Risk and efficiency in banking : a comparative study between Islamic and conventional banking." Thesis, University of Plymouth, 2018. http://hdl.handle.net/10026.1/11241.
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Purpose: The main aim of this study is to address the current gap in banking risk and efficiency literature by investigating risk and efficiency levels, identify risk and efficiency determinants. This thesis examines banking risk from one side and efficiency from another. The study also provides a comparative study between Islamic and conventional banking in an effort to provide clear, wide, understandable results. Methodology: The study’s methodology will be applied according to three main steps: first, estimating risk and efficiency levels. Second, investigating risk and efficiency determinants. And finally, identifying those potential variables affecting risk and efficiency through the SUR approach. Risk and efficiency levels are as follows; Risk figures by applying three potential risk indicators and efficiency levels through The Data Enveloping Analysis (DEA) approach. The study will also apply the methodology in two different scenarios: first, with Islamic banks; and second, with conventional banks. This step is taken in order to present comparable results amongst the different banking systems, which would produce clearer, wider and more understandable findings. Sample: The study covers a sample of major banks in the MENA area for the period spanning 2006–2015. Countries included Saudi Arabia, Kuwait, Qatar, Bahrain, United Arab Emirates, Jordan, Turkey, Egypt, Tunisia and Sudan. Results: After using two proxies to measure credit risk, the study has found that credit risk in Islamic and conventional banks is similar. A slight rise in loan loss reserve for conventional and a slight rise in non-performing loans in Islamic. The overall results show a similar credit risk levels in both Islamic and conventional banks in MENA. Insolvency risk was different, as Islamic banks reported higher risk levels compared to conventional banks. Z scores were higher in conventional banks indicating that insolvency risk in Islamic banks was higher. The study has found that efficiency levels in Islamic banks were also similar to efficiency levels in conventional banks. The Sharī‘ah’ compliance regulations did not affect the level of efficiency in Islamic banks performing in MENA. The study has investigated the impact of the global financial crisis on credit risk, insolvency risk and efficiency. The study found Islamic and conventional banks in MENA experienced an increase in credit risk. Both Islamic and conventional banks were less stable after the global financial with lower Z scores reported after the crisis. Banks in MENA were more efficient after the crisis. Efficiency scores were higher after the crisis compared to those reported before or during the crisis.
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Bayramli, Fargana <1995>. "The Place of Islamic Banking in Turkish Banking System and Comparative Performance Analysis." Master's Degree Thesis, Università Ca' Foscari Venezia, 2021. http://hdl.handle.net/10579/19645.
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The fact that today's banking system is based on interest has become inevitable to develop a banking system in line with Islamic principles. Muslims constitute approximately 30 percent of the world population and the need to utilize the increasing oil revenues in the Middle East made it necessary to create a new banking concept. In this direction, after the first trials, the Islamic Development Bank was established in 1975 with the initiative of 7 countries, which constituted the first example of Islamic banking. After that, despite a 45-year history, the Islamic banking system spread rapidly and more than 300 institutions providing interest-free banking services were established around the world, and their total asset size reached 1.2 trillion dollars. Over time, Turkey has adapted to the rapidly developing interest-free banking system in the world. As a matter of fact, the share of four participation banks serving in Turkey in the total banking sector has reached 5.1 percent as of today. With this study, it has been tried to explain that Islamic banking is growing day by day in the world and in Turkey, and the interest-free banking system has increased its share by showing a steady development despite having a small share in the total banking sector. In this study, the performance of participation banks was determined with the analysis made in the R program and compared with commercial banks.
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Basri, Mohd Faizal. "The performance of Malaysian Islamic banking industry and the impact of foreign Islamic banks." Thesis, Durham University, 2016. http://etheses.dur.ac.uk/11580/.
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Malaysia’s determination to become a hub for Islamic banking in Southeast Asia has led the Central Bank of Malaysia to grant licenses to foreign Islamic banks to operate in the country. Due to the intense competition among Islamic banks, the introduction of more innovative products is projected to tap investment opportunities not only for Malaysia but also for the rapidly growing Southeast Asian region. This research assesses the significance of Malaysian Islamic banking since the introduction of the first Islamic bank two decades ago, and evaluates the competition among the Islamic banks in the country. The research evaluates the impact of foreign Islamic banks in Malaysia by measuring their contribution to the growth of the Malaysian Islamic banking industry. In relation to this, the study is designed to address three primary areas. First, to measure the performance of the Islamic banks in Malaysia by using financial ratios, data envelopment analysis (DEA), and the Malmquist Productivity Index. Second, to compare and evaluate the nature of competition and market structure of the Islamic banks in the country by employing the bank concentration ratio (CRk), Herfindahl-Hirschman Index (HHI), and the Panzar-Rosse (PR) model. Lastly, to validate the relationship between competition among Islamic banks in Malaysia and their financial performance. The selected financial ratios indicated that domestic Islamic banks performed better during the 2005 to 2012 period in terms of profitability, but the foreign Islamic banks excelled in terms of liquidity, risk, and solvency ratios. DEA results showed that the domestic Islamic banks are considered more efficient with the majority of domestic Islamic banks outperforming the foreign Islamic banks. Banks like Maybank Islamic, CIMB Islamic, and Alliance Islamic are considered among the top performers for technical efficiency and scale efficiency. The study also found that based on the Malmquist Productivity Index, the least efficient banks based on DEA have improved in technical efficiency, technology, and total factor productivity (TFP). The study also found that between 2008 and 2012, the Malaysian Islamic banking industry operated in monopolistic competition conditions with a moderately concentrated market structure. The introduction of foreign Islamic banks caused the market structure to become more competitive and less concentrated by comparing the results that include foreign Islamic banks against results generated with a subsample of domestic Islamic banks only. BNM’s financial reform and liberalisation of financial system proved to induce competition making the financial system more resilient, competitive, and dynamic. The Islamic banks have recorded consistent increased annual performance with the under-performing Islamic banks catching up to the top performers.
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Muljawan, Dadang. "An analysis of capital regulation for Islamic banks." Thesis, Loughborough University, 2002. https://dspace.lboro.ac.uk/2134/6803.
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This thesis makes a theoretical contribution to the design of the capital adequacy assessment framework for Islamic banks. The proposed capital regulation is aimed at enhancing the Islamic banks' operational sustainability. The first analytical section in the thesis discusses the nature of sharing contracts. The analysis helps to explain the current reluctance to use sharing contracts by the players in the Islamic banking system. Each individual will always try to optimise his utility, monetarily as well as religiously, as a form of compliance with religious rules. However, in an adverse condition, religious and risk-averse customers will compromise the two utility objectives (i.e. adopting hybrid types of contract that, to some extent, deliver his minimum required financial return besides also complying with religious norms). The second analytical section in the thesis discusses possible improvements to the capital regulation of Islamic banks. This includes the possibility of enhancing the fiduciary as well as the agency roles performed by the Islamic banks. The analysis produces a number of propositions. The first proposition is to require the banks to have prudent assets-liabilities (capital) structures and to have adequate financial cushions. The second proposition is to require the shareholders of Islamic banks to observe a minimum level of financial participation; and to require the banks to disclose crucial financial information to investors. Theoretically, the higher the level of financial participation and the higher the quality of information provided, the better the quality of the contract entered into by the banks and 'their customers. The last part of the discussion, embracing empirical analysis, shows the important role played by capital in absorbing temporary financial shocks (especially when debt-based deposits are dominant). The discussion also covers the possibility of using statistical techniques for assessing the soundness of Islamic banks' operational activities.
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Makiyan, Seyed-Nezamaddin. "Islamic banking : an analysis of the case of Iran." Thesis, University of Birmingham, 1997. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.311783.
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Risfandy, Tastaftiyan. "Empirical essays on islamic banking : competition, stability and governance." Thesis, Limoges, 2018. http://www.theses.fr/2018LIMO0004/document.
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Cette thèse met en lumière trois questions importantes au regard des banques Islamiques. Dans le premier chapitre, nous examinons l'impact de la concurrence sur les différences de fixation des taux de dépôt dans les banques Islamiques et conventionnelles. Nous montrons qu'il existe des différences notables dans les déterminants des taux de dépôt dans les deux types d'institutions. La concurrence du marché a un impact significatif sur le taux de dépôt des banques conventionnelles mais pas des banques Islamiques. Notre résultat, en général, suggère que bien que le dépôt des banques Islamiques semble être similaire à celui des banques conventionnelles, leurs déterminants sont différents. Dans le deuxième chapitre, nous poursuivons nos enquêtes en examinant la question de la concurrence et de la stabilité. La concurrence entre banques Islamiques et conventionnelles augmente-t-elle la stabilité ou la fragilité des banques ? Notre principale constatation suggère que le marché concurrentiel des deux banques n'est pas bénéfique pour la stabilité des banques. Conformément au résultat du premier chapitre, lors de la prochaine enquête, la concurrence sur deux marchés ne concerne que les banques conventionnelles. Dans le troisième chapitre de cette dissertation, nous analysons le rôle du Conseil de surveillance de la Charia sur le financement par capitaux propres des banques. Notre résultat montre que le financement par capitaux propres des banques Islamiques est influencé par certaines caractéristiques de la Conseil de surveillance de la Charia. La présence d'un membre de la Conseil de surveillance de la Charia au Conseil d'administration ou d'un membre de l'exécutif a un impact positif sur le financement par actions tandis que l'existence d'un département de la Charia dans les banques Islamiques diminue la proportion de financement par capitaux propresThis dissertation highlights three important issues in Islamic banks. In the first chapter, we investigate the impact of dual market competition on the differences in deposit rate setting in Islamic and conventional banks. We show that there are notable differences in the determinants of deposit rates in the two types of institution. Market competition has a significant impact on deposit rate of conventional banks but not Islamic banks. Our result, in general, suggests that although Islamic banks’ deposit seems to be similar than conventional banks, their determinants are different. In the second chapter, we continue our investigations by looking at the competition-stability issue. Does competition between Islamic and conventional banks increase banks’ stability or fragility? Our main finding suggests that competitive dual banking market is not beneficial for banks’ stability. In line with the result from the first chapter, in the next investigation, dual market competition only matters for conventional banks. In the third chapter of this dissertation, we analyze the role of Shariah Supervisory Board (SSB) on banks’ equity financing. Our result shows that Islamic banks’ equity financing is influenced by some characteristics of SSB. The presence of SSB member in the Board of Directors (BOD) or executive member has a positive impact on equity financing whereas the existence of a Shariah department in Islamic banks decreases the proportion of equity financing
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Idris, Ahmad Fauzi. "Islamic banks' financial reporting and its usefulness to investors : a case study of Bank Islam Malaysia Berhad Malaysia." Thesis, Cardiff University, 1996. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.363265.
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Al-Harran, Saad Abdul Sattar. "Islamic finance : the experience of the Sudanese Islamic Bank in partnership (musharakah) financing as a tool for rural development among small farmers in Sudan." Thesis, Durham University, 1990. http://etheses.dur.ac.uk/1106/.
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Baej, Yahia Mohamad A. H. "A Comparison of Key Dimensions in Conventional and Islamic Banking: An International Perspective with Implications for the Bank Transformation Process in Libya." Thesis, Griffith University, 2014. http://hdl.handle.net/10072/366756.
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Shariah-compliant or Islamic banking is new one of the fastest growing financial services sectors worldwide. While Muslims view this banking model as providing a religious-based alternative to the financial products and services offered by conventional banks, they are also an alternative banking system either fully or partially adopted by banks in more than fifty countries. The premise of Islamic banking is entirely based on the principles of Shariah (Islamic) law that prohibits contracts that involve interest (Riba), uncertainty (Gharar), gambling (Maysir), injustice (Dhulm) as well as the practice of other noncompliant products and services. Nevertheless, despite these apparent restrictions on their activities, the number of international institutions converting their operations in full or in part to Islamic banking is steadily growing.Thesis (PhD Doctorate)
Doctor of Philosophy (PhD)
Griffith Business School
Griffith Business School
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Pervez, Avais. "Principles of Islamic Interest Free Banking in Pakistan: Study focusing on three Islamic Banks in Pakistan." Thesis, Mälardalens högskola, Akademin för hållbar samhälls- och teknikutveckling, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-13932.
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Islamic Banking, the Shariah (Islamic law) compliant banking for Muslims, is unarguably at the nascent stage of its development as a financial competitor and alternative to the conventional interest – based banking system practiced around the world. This thesis looks into the principles of Islamic banks of Pakistan and focusing three Islamic Banks in Pakistan. The thesis analyzes the findings of three banks made by interviews and compare with the conventional banking system, to check that are the principles different or same. This thesis is qualitative in nature, based on theoretical and empirical findings.
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Rahman, Suhaimi Ab. "The Classical Islamic law of guarantee and its application in modern Islamic Banking and legal practice." Thesis, Aberystwyth University, 2005. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.497033.
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Rajaei-Baghsiyaei, Mohammad. "The contribution of Islamic banking to economic development : the case of the Islamic Republic of Iran." Thesis, Durham University, 2011. http://etheses.dur.ac.uk/913/.
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Islamic banking is a new industry which has attracted the attention of many economists in the world regarding its ability to operate successfully and its instruments for mobilising and allocating monetary resources (Deposits). Usually, in the majority of Islamic countries and in some non-Islamic countries, Islamic banking works as one part of a banking system. There are few countries where the banking system is completely Islamic and the Islamic Republic of Iran is one of them. In a country in which the entire system is Islamic there are more questions about its activities. The most important questions are: how can bank managers ensure the Shariah-compliance of banking system activities and how can they contribute to economic development? These are the two main questions of this research. In order to answer the first question, the Law of Usury-Free Banking in Iran was analysed and it was shown that this law is Shariah-compliant. However, the most important issue is to make sure that all banks in the country work according to the Law of Usury-Free Banking. In order to explore this semi-structured interviews were carried out with twelve interviewees including managers of the Central Bank and commercial banks and researchers. The result of the interviews was the introduction of several instruments used in the banking system of Iran for the supervision of banking activities and to ensure their Shariah-compliance. A new issue in this research is that being Shariah-compliant does not only mean utilising appropriate contracts for each project but also using deposits for the most efficient and profitable projects. This is because banks are the agents of the depositors and therefore they must use their deposits for the best possible projects. The vast majority of interviewees believe that Islamic banking system in Iran works in conformity with the Law of Usury-Free Banking in Iran. Regarding the second main question, this study utilised both quantitative and qualitative methods in order to obtain sufficient data to analyse it. The secondary data was taken from Iran‘s Central Bank Annual Reports, other Iranian banks‘ reports, the Ministry of Industry, the Ministry of Agriculture and the Statistics Centre of Iran. Although the main period of the study was 1989-2006, in order to make a comparative study the periods 1961-1978 and 1979-1988 were considered in some parts of the study. For a more accurate study, not only were the amounts of deposits and financial facilities in the periods before and after the Islamic Revolution compared, but their ratio to liquidity (M2) and GDP were also compared. Our finding was that Islamic banking was relatively more successful than conventional banks operating before the Islamic Revolution in Iran. One important aspect of the contribution of the banking system in Iran to economic development is direct investment. The Islamic banking system in Iran has carried out thousands of huge projects directly most of which cannot be undertaken by private sector including: highways, petrochemical industries, wood and paper industries, industrial farming and animal husbandry, automobile manufacture, the cement industry, railways and so on. In addition, primary data was collected via semi-structured interviews. The majority of interviewees believed that Islamic banking in Iran has had a positive effect on economic development.
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Abdel, Al Qasem. "Islamic banking regulation and supervision : a case study of Jordan." Thesis, Loughborough University, 2004. https://dspace.lboro.ac.uk/2134/7613.
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Regulation and supervision of banks has acquired a great interest over the last two decades in order to control banks' risks after many shocks affected banks' soundness. On an international level, the standards of Banking Supervision Committee of Basel have become the international standards for all banks in developed and developing countries. Basel standards were designed basically for conventional banks. Nevertheless, as Islamic banks are based on profit-loss-sharing (PLS) arrangements, some of these standards are not applicable to Islamic banks. The objective of this study is to investigate the foundations for regulation and supervision of Islamic banks. To achieve this objective, the study has adopted two methodologies. The first methodology is based on longitudinal data for banks in Jordan for the period 1990-2000. This methodology covers the effectiveness of capital regulation that aims to control banks' risk; also, credit risk, liquidity ratio, and loan-loss- provisions are tested. Regression of OLS, fixed and random effect were used. The second methodology is based on a questionnaire approach. Questionnaires are designed to answer seven questions relating to the general objectives of regulation and supervision of Islamic banks, the objectives of deposit protection, licensing conditions, credit risk, liquidity risk, factors determining the capital adequacy ratios and the information disclosures. Data is gathered from the Central Bank of Jordan, Islamic banks, conventional banks and external auditors in Jordan. Descriptive and variance analyses are used to analyze this data. It is declared that the characteristics of the PLS and their risks are different from those of conventional banks, therefore, Islamic banks are in need of special capital adequacy ratios, internal control systems, risk and liquidity management policies, and information disclosure standards appropriate for their characteristics.
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Eid, Wael Kamal Amin. "Mapping the risks and risk management practices in Islamic banking." Thesis, Durham University, 2012. http://etheses.dur.ac.uk/3582/.
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Although risk management in Islamic banking is one of the major as well as controversial issues of the sector, it is still an under-researched area of study. A lot of uncertainties still exist in risk management in Islamic banking, for which the answers are not yet necessarily clear, but which will play a part in shaping the industry’s future. Effective risk management in Islamic banking, thus, deserves priority attention: unless the industry develops its own genuine risk management architecture, it cannot achieve the dynamism that provides the viability needed for a more resilient financial system than the failing Wall Street model. Therefore, the study of risk management issues of the Islamic banking industry is an important but complex area. This study, hence, explores and analyses risk management practices in the Islamic banking industry through the perceptions of participants who were drawn from the banking and finance industry. The research maps out the opinions and attitudes towards risk and locates the practices of the industry related to risk management. This study provides an up-to-date overview of current market practices, issues, and trends in risk management for Islamic banks. It focuses on practical applications and discusses a wide range of unique risks facing Islamic banks from the perspective of different range of practitioners. To fulfil the aims of the research study, first, the present thesis analyses a number of issues concerning the subject using secondary data. Second, the unique risks facing Islamic banks and the perceptions of banking professionals regarding these risks are surveyed through a questionnaire. The final survey sample comprised 72 surveys from 18 countries. The data were analysed using various statistical analysis techniques ranging from simple frequency distribution analysis to the more advanced analyses such as non-parametric statistical analysis, factor analysis, and MANOVA multivariate analysis of variance. Third, semi-structured interviews were subsequently conducted with 33 leading Islamic banking professionals from 9 countries in order to develop an in-depth understanding of the underlying issues. Focused coding technique is used to analyse and sort the findings. In general, the findings from this study identified weaknesses and vulnerabilities among Islamic banks in the area of risk management and governance. Risk management, monitoring, reporting, and mitigation need to be enhanced across the entire industry. The study has also shown that the majority of respondents consider liquidity, asset-liability management, and concentration risks as the top risks facing Islamic banks. In addition, regional risk perceptions were crystallized by conducting inferential statistical analysis. The findings also show that, although Islamic banks have shown resilience, they are not immune to financial shocks. The study asserts that the root drivers of the prevailing financial system have to be challenged and replaced by a more transparent and ethical alternative, for which Islamic finance is a serious yet underdeveloped option. The real issue in Islamic banking is the excessive reliance on form at the expense of substance. It should also be noted that the findings of the study have policy-making implications which could benefit regulators, policy makers, Shari’ah scholars, practitioners, academia, and institutional stakeholders. Furthermore, this study has filled a gap in the literature by empirically exploring risk management issues from an Islamic banking perspective.
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Al-Askar, Salih Rashed. "Client and employee perceptions of Islamic banking in Saudi Arabia." Thesis, Durham University, 2005. http://etheses.dur.ac.uk/1301/.
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Suleman, Yasser. "The legislative challenges of Islamic banks in South Africa." Thesis, Stellenbosch : Stellenbosch University, 2011. http://hdl.handle.net/10019.1/21644.
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Thesis (MBA)--Stellenbosch University, 2011.The Islamic Banking industry has been one of the fastest growing industries worldwide with a compound annual growth rate of 28% between 2006 and 2009(Reuters, 2010). These growth rates were experienced amidst the worst economic meltdown the world has seen in decades. This is a clear indication that there is a high level of confidence in the industry. Although the industry has existed for centuries, the past few decades have brought about a revival in Islamic banking. Many Western countries are recognising the industry’s importance and have taken various steps in supporting the establishment of it. South Africa has also taken such steps and has a vision of becoming a hub for Islamic banking on the African continent. This mini thesis examines the differences in nature of the underlying principles of Islamic and conventional banking which then brings to the fore the various challenges that exist in the unhindered functioning of Islamic banks within Western countries. These challenges revolve around institutional and legal frameworks, regulatory and supervisory bodies, South African Reserve Bank requirements, interest, taxation and conceptual understandings. In order to provide recommendations to address these challenges, case studies of Islamic banking in both, Islamic and Western countries were conducted. These case studies provided insight into how countries have addressed similar challenges and to what degree were they successful. This provided the basis from which recommendations were made for Islamic banking to function efficiently and effectively in South Africa and for the country to achieve its goal of becoming a hub of Islamic banking on the African continent.
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Beqiri, Arlinda. "Corporate Governance and Banking Governance within Conventional and Islamic banking systems. : A Cross-case Study between Conventional banks in Sweden and Islamic banks in UK." Thesis, Karlstads universitet, Handelshögskolan, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:kau:diva-47998.
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The aim of this study is to understand and analyse the relationship between corporate governance (CG) and banking governance (BG) in Conventional and Islamic banking systems. The reason for choosing this topic was because the regulations and banking systems within Conventional banks are differently in comparison to Islamic banks, which means that their corporate governance and banking governance are influenced by different mechanisms and therefore regulated differently. Since Conventional banks stands for a small amount of Islamic banks in their markets and Islamic countries do have Conventional banks in theirs, made this topic a good case study. Furthermore is Sweden a Conventional country where they don’t offer Islamic financial services and the UK is a Conventional country where they do, which was an interesting fact since both of them are European countries with similar regulations. The author of this thesis chose qualitative, semi-structured interviews, where six persons: three from Sweden and three from the UK stood for answers toward their banking systems. Since these respondents were standing on a high position within their organizations did they have the knowledge needed to answer the questions asked. The result showed that the relationship between CG and BC in Conventional and Islamic banking systems have an impact in the way different types of banks operate. Identifying the Conventional and Islamic banks differences and assessing on how the Corporate Governance and Banking Governance do operate solves the complexity in the system. Based on the findings, countries that are applying the Conventional system need to expand their regulations and mechanisms so that other systems could operate without a need for changes in their own. They also need to expand their knowledge, where the population needs to be familiar with other banking systems and services as well.
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Bin, Abd Razak Shahrul Azman Verfasser], Jamal [Gutachter] [Malik, and Friedrich [Gutachter] Thießen. "“Islamic” or “Islamizing” Banking Product? Reconsidering Product Development’s Approaches in the Malaysian Islamic Banking Industry / Shahrul Azman Bin Abd Razak ; Gutachter: Jamal Malik, Friedrich Thießen." Erfurt : Universität Erfurt, 2015. http://d-nb.info/1215977751/34.
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Khan, Tariqullah. "An analysis of risk sharing in Islamic finance with reference to Pakistan." Thesis, Loughborough University, 1996. https://dspace.lboro.ac.uk/2134/6960.
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The Islamic law prohibits charging and paying of interest but allows earning profits on the basis of participation in the market. This legal injunction has motivated the establishment and successful operation of a number of Islamic financial institutions. The emergence and rise of these institutions is an important academic and practical development of our time. The theory of Islamic finance evolved on the basis of profit and loss sharing (PLS) principle underlying participatory Islamic financial contracts. However, the practice of Islamic finance does not conform to the theory and overwhelmingly relies on the mark-up principle which underlies deferred trade. The PLS is in striking contrast to the interest mechanism, but the mark-up is not. The present research inquires the causes underlying the negligence of the mark-up mechanism at the time when the theory was developing. Looking at the preferences of users and suppliers of funds, the causes of the overwhelming use of mark-up in the practices of Islamic finance are also analyzed. Pakistan has remained at the forefront of financial Islamization. The research also draws on this practical experience with a view to explore how the market rewards risk. The study also analyzes the prospects of financial Islamization in a real world scenario in which most Muslim countries rely substantially on foreign financial resources. Thq central conclusion of the study is that the mark-up and PLS mechanisms have their own merits and weaknesses. The merit of the markup is that it facilitates the acquisition of assets. The merit of the PLS is that it links financiers' interests with the outcome of projects. The study concentrates on the analysis of the inherent characteristics of the PLS and mark-up as parent principles of Islamic finance rather than the institutional environment in which these are practiced. It implies that given the market environment, the strength of Islamic finance lies in the integration of the prime merits of mark-up and PLS and in developing a comprehensive set of Islamic financial instruments.
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Baamir, Abdulrahman. "Saudi law and judicial practice in commercial and banking arbitration." Thesis, Brunel University, 2009. http://bura.brunel.ac.uk/handle/2438/6599.
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This thesis examines various issues of arbitration law and practice in relation to the Islamic Shari’a law and the law of Saudi Arabia in general, and for arbitration in conventional banking disputes in particular. The thesis found that the Shari’a regulates arbitration tightly compared to other contemporary developments as no fundamental differences were found to exist between the classical Shari’a arbitration rules and the Saudi arbitration regulations, which represent the codification of the Hanbali law of arbitration. Unlike other arbitration laws, almost all kinds of disputes can be settled by arbitration in Saudi Arabia, and these include family and some criminal disputes such as murder and personal injuries. Moreover, this thesis demonstrates the difference between Islamic law and Saudi law. The latter is more comprehensive as it includes Islamic law and the borrowed Codes and Acts of the laws of other nations. The legal status of banking interest under the Saudi law is not clearly defined and it is not clear whether riba contradicts with the public policy of Saudi Arabia or not. This uncertainty has an impact on arbitration related to banking disputes and has led me to conclude that arbitration is not the best method for settling disputes involving domestic conventional banking business. Although resorting to the Committee for the Settlement of Banking Disputes of SAMA might provide a better solution, the decisions of the Committee are not “strong” enough to be fully enforced and the payment of interest continues to be an avoidable obligation in Saudi Arabia; therefore, the thesis examined the alternative remedies for both domestic and international banking arbitration. The thesis also found that if the enforcement of an international arbitration award is sought in Saudi Arabia, the award will be subject to the mandatory application of Shari’a law, which in addition to the imposition of interest, prohibits also certain kinds of commercial contracts.
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Al-Sayed, Hashim Abdulrahim. "A study on the development and analysis of investment tools in Islamic banks with special reference to the experience of Qatar International Islamic Bank and Qatar Islamic Bank during the period 1999-2009." Thesis, University of Wales Trinity Saint David, 2013. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.683089.
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