Alam / Gupta / Shanmugam Islamic Finance

A Practical Perspective
1. Auflage 2017
ISBN: 978-3-319-66559-7
Verlag: Springer Nature Switzerland
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 490 Seiten

Reihe: Progress in Mathematics

This book provides a comprehensive and practical guide to Islamic finance. It covers a broad range of important topics including Islamic banking, capital markets, Takaful, wealth management, Fintech in Islamic finance, compliance and governance issues.It begins by introducing Islamic banking, covering its objectives, principles and evolution, before moving on to discuss the religious foundations of Islamic finance. The prohibition of Riba and Gharar and Islamic contracts are explored, before Islamic deposits, and financing are discussed in practice. A comparative analysis is provided between Islamic banking products and services in a range of counties throughout the world. Information technology including fintech, payment and settlement networks, opportunities and challenges are also addressed. Corporate governance, Islamic capital markets, and Islamic insurance (Takaful) are all explored, before concluding with a chapter on wealth management and Islamic investment funds. It features case studies based on the authors' own experiences consulting with Islamic financial institutions.
Ideal for those looking to improve their understanding of practical Islamic financing models, contracts, product structures and product features, this book will appeal to both students and practitioners in Islamic finance and banking, those based in Islamic financial institutions, and those based in conventional financial institutions who may be looking to enter the Islamic financial market.
 

Dr Nafis Alam is an Associate Professor of Finance at Henley Business School, University of Reading Malaysia. His research is focused on banking regulation, corporate finance, Islamic banking & finance and financial intermediation. He has co-authored five books in Islamic Finance, including an Encyclopedia of Islamic Finance. Lokesh Gupta has 17 years of experience in Financial Solution Consulting and Implementation. Currently, he is involved in Asset Liability Management, Basel III, Reporting Data Mart Development, as well as Remittance & Payments Solution implementations in South East Asia region. He has co-authored four books in Islamic Finance and has published papers in various magazines. Professor Bala Shanmugam is an academic advisor to FedUni, Malaysia, as well as Adjunct Professor at Asia e University, Malaysia. Professor Shanmugam has extensive industry experience and has served as Consultant to many Financial Institutions, including the World Bank.  He is also on the Editorial Boards of various journals in Banking and Finance domain.

Autoren/Hrsg.

Alam, Nafis

Gupta, Lokesh

Shanmugam, Bala

Inhaltsverzeichnis

1;Foreword;5
2;Preface;7
3;Contents;10
4;List of Figures;12
5;List of Tables;14
6;1: Introduction to Islamic Banking;16
6.1;1 Introduction;16
6.1.1;1.1 Definition of Islamic Banking;17
6.1.2;1.2 Islamic Banking Objectives;18
6.1.3;1.3 Islamic Banking Principles;19
6.1.4;1.4 Islamic Banking Evolution;22
6.1.5;1.5 Islamic Economics;23
6.1.6;1.6 Islamic and Conventional Banking;26
6.1.7;1.7 Advantages of Islamic Banking;29
6.2;References;30
7;2: The Religious Foundations of Islamic Banking;31
7.1;1 Islam: An Overview;31
7.1.1;1.1 Pillars of Islam;35
7.2;2 Syariah Overview;37
7.2.1;2.1 Sources of Syariah;38
7.2.2;2.2 Objectives of Syariah;42
7.2.3;2.3 Rulings of Syariah;44
7.2.4;2.4 Banking for All;45
7.3;3 Summary;47
7.4;References;47
8;3: Prohibition of Riba and Gharar in Islamic Banking;49
8.1;1 Introduction;49
8.1.1;1.1 Definitions of Riba;50
8.1.1.1;1.1.1 Types of Riba;51
8.1.1.2;1.1.2 Ribawi Materials;55
8.1.1.3;1.1.3 Riba and Profit;58
8.1.1.4;1.1.4 Why Riba Is Prohibited;60
8.1.2;1.2 Gharar Definition;63
8.1.2.1;1.2.1 Types of Gharar;65
8.2;References;67
9;4: Islamic Contracts;68
9.1;1 Fundamentals of Islamic Contracts;68
9.1.1;1.1 Essential Elements of a Valid Contract;69
9.1.1.1;1.1.1 Offer and Acceptance;70
9.1.1.2;1.1.2 Contract Subject Matter;71
9.1.1.3;1.1.3 Consideration;71
9.1.1.4;1.1.4 Capacity of the Parties to Contract;72
9.1.1.5;1.1.5 Legality;72
9.1.2;1.2 Classification Based on Nature of Contract;73
9.1.2.1;1.2.1 Unilateral Contract;73
9.1.2.2;1.2.2 Bilateral Contract;74
9.1.2.3;1.2.3 Quasi Contract;74
9.1.3;1.3 Classification According to Legal Consequences;75
9.1.3.1;1.3.1 Valid Contract (Sahih);75
9.1.3.2;1.3.2 Invalid or Deficient Contract (Fasid);76
9.1.3.3;1.3.3 Void Contract (Batil);77
9.1.3.4;1.3.4 Binding Contract (Lazim);77
9.1.3.5;1.3.5 Enforceable Contract (Nafidh);78
9.1.3.6;1.3.6 Withheld Contract (Mawquf);78
9.1.4;1.4 Islamic Sale Contract;78
9.1.4.1;1.4.1 Classification of Sale Based on the Things Sold;79
9.1.4.2;1.4.2 Classification of Sale Based on the Nature of Profit-Sharing;80
9.1.4.3;1.4.3 Possibilities of Payment Under Sales Contract;81
9.1.4.4;1.4.4 Essential Requirement for Sales Contract;81
9.1.4.4.1;Contract: Offer and Acceptance;81
9.1.4.4.2;Contract: Parties to the Contract;84
9.1.4.4.3;Contract: Conditions of Contract;84
9.1.4.4.4;Contract: The Subject Matter;85
9.1.4.4.5;Contract: The Price;86
9.1.5;1.5 Contracts in Islamic Banking;87
9.1.5.1;1.5.1 Trading Contracts;87
9.1.5.2;1.5.2 Participation Contracts;89
9.1.5.3;1.5.3 Supporting Contracts;90
9.2;References;91
10;5: Islamic Deposits in Practice;92
10.1;1 Introduction;92
10.1.1;1.1 Modus Operandi of Islamic Banks;93
10.1.2;1.2 Deposit Concept;95
10.1.3;1.3 Syariah Principle in Deposits;95
10.1.3.1;1.3.1 Wadiah Principle;96
10.1.3.2;1.3.2 Mudharabah Principle;98
10.1.4;1.4 Saving Account;99
10.1.4.1;1.4.1 Saving Account Practice;101
10.1.4.2;1.4.2 Saving Account Profit Computation;101
10.1.5;1.5 Current Account;105
10.1.5.1;1.5.1 Wadiah Current Account Practice;106
10.1.5.2;1.5.2 Mudharabah Current Account Practice;107
10.1.5.3;1.5.3 Mudharabah Current Account Profit Computation;112
10.1.6;1.6 Investment Account;114
10.1.6.1;1.6.1 Mudharabah Muthalaqah (General Investment Account);115
10.1.6.2;1.6.2 Mudharabah Muthalaqah Practice (General Investment Account);117
10.1.6.3;1.6.3 Mudharabah Muthalaqah Dividend Computation;117
10.1.6.4;1.6.4 Mudharabah Muqayyadah (Special Investment Account);122
10.1.6.5;1.6.5 Mudharabah Muqayyadah (Special Investment Account);123
10.1.7;1.7 Similarities and Differences of Deposits in Conventional and Islamic Bank;125
10.1.8;1.8 Account Types;126
10.1.8.1;1.8.1 Minor Accounts;127
10.1.8.2;1.8.2 Individual Accounts;127
10.1.8.3;1.8.3 Joint Accounts;128
10.1.8.4;1.8.4 Sole Proprietorship Accounts;129
10.1.8.5;1.8.5 Partnership Accounts;130
10.1.8.6;1.8.6 Professionals’ Accounts;132
10.1.8.7;1.8.7 Company Accounts;133
10.1.8.8;1.8.8 Executor’s and Administrators’ Accounts;135
10.1.8.9;1.8.9 Trustee Account;137
10.1.8.10;1.8.10 Societies Clubs and Association Accounts;137
10.1.8.11;1.8.11 Religious Bodies Accounts;138
10.1.8.12;1.8.12 Co-operative Societies;139
10.1.8.13;1.8.13 Government Accounts;139
10.1.8.14;1.8.14 School Accounts;140
10.1.8.15;1.8.15 Eligible Account Holders;141
10.1.9;1.9 Deposit Products Summary;141
10.2;References;142
11;6: Islamic Financing in Practice;144
11.1;1 Introduction;144
11.1.1;1.1 Islamic Financing Concept;144
11.1.2;1.2 Key Features of Islamic Financing;145
11.1.3;1.3 Al Bai Bithaman Ajil;146
11.1.3.1;1.3.1 Essential Elements of BBA Contract;147
11.1.3.2;1.3.2 Contracts in BBA;147
11.1.3.3;1.3.3 Modus Operandi of House Financing;150
11.1.3.4;1.3.4 Modus Operandi of Umrah Financing;152
11.1.3.5;1.3.5 Modus Operandi of Cash Line Facility;154
11.1.3.6;1.3.6 BBA Financing Practice;154
11.1.3.7;1.3.7 BBA Financing Instalment Computation Using CRR;159
11.1.3.8;1.3.8 BBA Financing Instalment Computation Using Rule 78;162
11.1.3.9;1.3.9 BBA with Floating Rate;164
11.1.4;1.4 Murabahah;166
11.1.4.1;1.4.1 Essential Elements of Murabahah Contract;167
11.1.4.2;1.4.2 Modus Operandi of Murabahah Financing;169
11.1.4.3;1.4.3 Modus Operandi of Murabahah Financing for Working Capital;170
11.1.4.4;1.4.4 Murabahah Financing Practice;172
11.1.4.5;1.4.5 Murabahah Financing Computation;172
11.1.4.6;1.4.6 Challenges in Murabahah Financing;175
11.1.4.7;1.4.7 Comparison Between BBA and Murabahah Practice in Malaysia;178
11.1.5;1.5 Ijarah;178
11.1.5.1;1.5.1 Modus Operandi of Ijarah Financing;181
11.1.5.2;1.5.2 Essential Elements of Ijarah Contract;183
11.1.5.3;1.5.3 Ijarah Financing Practice;183
11.1.5.4;1.5.4 Ijarah Financing Computation;186
11.1.5.5;1.5.5 Comparison Between Ijarah and Conventional Leasing;188
11.1.6;1.6 AITAB Financing;188
11.1.6.1;1.6.1 Modus Operandi of AITAB Financing;191
11.1.6.2;1.6.2 Essential Elements of AITAB;193
11.1.6.3;1.6.3 AITAB Financing Computation;193
11.1.6.4;1.6.4 Challenges in Implementing AITAB;197
11.1.6.5;1.6.5 Comparison Between AIAB and Conventional Hire Purchase;201
11.1.7;1.7 Musharakah;201
11.1.7.1;1.7.1 Musharakah Classification;203
11.1.7.1.1;Shirkat-ul-Milk;204
11.1.7.1.2;Shirkat-ul-Aqd;204
11.1.7.2;1.7.2 Essential Elements of Musharakah Contract;205
11.1.7.3;1.7.3 Modus Operandi of Musharakah Financing;207
11.1.7.4;1.7.4 Musharakah Financing Practice;209
11.1.7.5;1.7.5 Musharakah in Venture Financing;209
11.1.7.6;1.7.6 Challenges in Implementing Musharakah;211
11.1.7.7;1.7.7 Comparison Between Mudharabah and Musharakah;212
11.1.8;1.8 Diminishing Musharakah;213
11.1.8.1;1.8.1 Modus Operandi of Diminishing Musharakah;214
11.1.8.2;1.8.2 Diminishing Musharakah in Financing Practice;216
11.1.8.3;1.8.3 Diminishing Musharakah Financing Computation;217
11.1.8.4;1.8.4 Comparison Between Diminishing Musharakah and BBA Financing;219
11.1.9;1.9 Bai Salam Financing;219
11.1.9.1;1.9.1 Essential Elements of Bai Salam Contract;231
11.1.9.2;1.9.2 Modus Operandi of Bai Salam Financing;233
11.1.9.3;1.9.3 Bai Salam Financing Practice;234
11.1.10;1.10 Istisna Financing;235
11.1.10.1;1.10.1 Structuring an Istisna Financing Transaction;236
11.1.10.2;1.10.2 Istisna Financing in Practice;237
11.1.10.3;1.10.3 Comparison between Istisna and Bai Salam;238
11.1.11;1.11 Qard Hassan Financing;238
11.1.12;1.12 Ar-Rahnu Financing;240
11.1.12.1;1.12.1 Objective of Ar-Rahnu Scheme;241
11.1.12.2;1.12.2 Rahnu Financing Mechanism;242
11.1.12.3;1.12.3 Implementation of Ar-Rahnu;244
11.1.13;1.13 Bai al Inah Financing;244
11.1.13.1;1.13.1 Bai al Inah Financing Mechanism;245
11.1.13.2;1.13.2 Permissibility of Bai al Inah Financing Mechanism;246
11.1.14;1.14 Two-Tier Mudharabah Model;247
11.1.15;1.15 Challenges in Financing;248
11.1.16;1.16 Comparison Between Islamic and Conventional Financing;250
11.1.17;1.17 Regulating and Supervising Islamic Financing;252
11.1.18;1.18 Summary;253
11.2;References;253
12;7: Comparative Analysis: Islamic Banking Products and Services in Different Countries;258
12.1;1 Introduction;258
12.2;2 Comparison of Islamic Financial Institution by Country;259
12.2.1;2.1 Islamic Banking Evolution;260
12.2.2;2.2 Functions and Principles;272
12.2.2.1;2.2.1 The Use of Terminology;273
12.3;3 Products and Services;283
12.3.1;3.1 Current Account;283
12.3.2;3.2 Saving Account;285
12.3.3;3.3 Investment Deposits;289
12.3.4;3.4 Murabahah Financing;293
12.3.5;3.5 Bai Bithaman Ajil Financing;297
12.3.6;3.6 Musharakah Financing;298
12.3.7;3.7 Mudharabah Financing;303
12.3.8;3.8 Ijarah Financing;305
12.3.9;3.9 Qard Hassan Financing;307
12.3.10;3.10 Bai Inah;309
12.3.11;3.11 Islamic Charge Card;309
12.3.12;3.12 Istisna;311
12.4;4 Financial Reporting;312
12.5;5 Summary;314
12.6;References;316
13;8: IT in Islamic Banks;319
13.1;1 Introduction;319
13.1.1;1.1 Evolution of Technology in Islamic Banking;320
13.1.2;1.2 Islamic Core Banking System;322
13.1.2.1;1.2.1 Customer Information System;323
13.1.2.2;1.2.2 Financing Information;324
13.1.2.3;1.2.3 Deposits;327
13.1.2.4;1.2.4 Investment;328
13.1.2.5;1.2.5 Treasury;329
13.1.2.6;1.2.6 Trade Finance;330
13.1.2.7;1.2.7 Share Margin System;331
13.1.2.8;1.2.8 Remittance;332
13.1.2.9;1.2.9 Card Management System;333
13.1.2.10;1.2.10 General Ledger;334
13.1.2.11;1.2.11 Internet Banking;336
13.1.2.12;1.2.12 Branch Teller System;338
13.1.2.13;1.2.13 Cash Management;340
13.1.2.14;1.2.14 Online Security Trading Portal;343
13.1.2.15;1.2.15 Risk Management;344
13.1.2.16;1.2.16 Security;345
13.1.2.17;1.2.17 Management Information System (MIS);346
13.1.2.18;1.2.18 Enterprise Application Interface (EAI);347
13.1.2.19;1.2.19 Other Touch Points;349
13.1.2.20;1.2.20 Mobile Banking;350
13.1.2.21;1.2.21 System Set Up;351
13.1.3;1.3 Payment and Settlement Network;351
13.1.3.1;1.3.1 Bankcard Network;352
13.1.3.2;1.3.2 Interbank Giro (IBG);352
13.1.3.3;1.3.3 Financial Processing Exchange (FPX);353
13.1.3.4;1.3.4 SWIFT;353
13.1.3.5;1.3.5 Western Union Money Transfer;354
13.1.3.6;1.3.6 VISA Payment Network;354
13.1.3.7;1.3.7 MasterCard Payment Network;354
13.1.3.8;1.3.8 National Cheque Image Clearing System (SPICK);355
13.1.3.9;1.3.9 Real-Time Transfer of Funds and Securities (RENTAS);356
13.1.4;1.4 Role of Technology for Regulatory Compliance;356
13.1.5;1.5 Islamic Core Banking Solution Provider;358
13.1.6;1.6 Fintech and Islamic Finance;358
13.1.7;1.7 Technology Challenges Ahead;366
13.1.8;1.8 Summary;368
13.2;References;368
14;9: Corporate Governance in Islamic Banks;371
14.1;1 Introduction;371
14.1.1;1.1 Corporate Governance Definition;372
14.1.2;1.2 Corporate Governance in Banks;374
14.1.3;1.3 Corporate Governance Model;375
14.1.3.1;1.3.1 Stakeholder in Islamic Banks;376
14.1.3.2;1.3.2 Governance Structures;377
14.1.4;1.4 Corporate Governance Components in Malaysia;379
14.1.4.1;1.4.1 Formal and Codified Law;380
14.1.4.2;1.4.2 Regulation and Regulatory Authorities;382
14.1.4.3;1.4.3 Malaysian Code on Corporate Governance;387
14.1.4.4;1.4.4 Recognized Global Standards;389
14.1.4.5;1.4.5 Internal Syariah Committee;394
14.1.4.6;1.4.6 Syariah-Compliance Review;395
14.1.5;1.5 Bank Negara Syariah Advisory Council;396
14.1.6;1.6 Social Dimension of Corporate Governance;397
14.1.7;1.7 Challenges in Corporate Governance Implementation;399
14.1.8;1.8 Standardization through Corporate Governance;402
14.1.9;1.9 Summary;405
14.2;References;405
15;10: Islamic Capital Market;409
15.1;1 Introduction;409
15.1.1;1.1 Role of the ICM in Global Financial System;409
15.1.2;1.2 Essential Components of ICM;410
15.1.2.1;1.2.1 The Islamic Equity Market—Public Listed Companies;412
15.1.2.1.1;Islamic Shares;412
15.1.2.1.2;Shares in Syariah-Compliant Companies;412
15.1.2.1.3;Regulatory Framework for Islamic Equity and Indexes;413
15.1.2.2;1.2.2 Unit Trusts/Mutual Funds;417
15.1.2.2.1;Managers, Trustees, and Unit Holders or Investors;418
15.1.2.2.2;The Attraction of Unit Trusts/Mutual Funds;419
15.1.2.2.3;Syariah Perspective;419
15.1.2.3;1.2.3 Islamic Private Equity Funds;421
15.1.2.4;1.2.4 Islamic Specialized Funds;421
15.1.2.4.1;Islamic Leasing Funds;422
15.1.2.4.2;Islamic Exchange-Traded Funds (ETFs);422
15.1.2.4.3;Islamic Real Estate Investment Trust (IREIT);423
15.1.2.5;1.2.5 Islamic Fixed-Income Instruments—Sukuk;424
15.1.2.5.1;Regulatory Framework for Sukuk Issuance;428
15.1.2.5.2;Features, Types, and Mechanisms of Islamic Sukuk;429
15.1.2.5.3;Recent Trends in Sukuk;434
15.1.2.6;1.2.6 Islamic Derivatives or Structured Products;439
15.2;References;441
16;11: Takaful;442
16.1;1 Introduction;442
16.1.1;1.1 Takaful Definition;443
16.1.2;1.2 History and Crucial Elements of Takaful System;444
16.1.3;1.3 Comparison Between Takaful and Conventional Insurance System;445
16.1.4;1.4 Mudharabah Model in Practice;445
16.1.5;1.5 Wakalah Model in Practice;449
16.1.6;1.6 Wakalah with Waqf Model in Practice;451
16.1.7;1.7 Types of Takaful;453
16.1.7.1;1.7.1 Family Takaful;453
16.1.7.2;1.7.2 General Takaful;455
16.1.8;1.8 Global Outlook of Takaful;455
16.1.9;1.9 Takaful in Malaysia;456
16.1.10;1.10 Challenges in Takaful;457
16.1.11;1.11 Summary;458
16.2;References;459
17;12: Islamic Wealth Management;461
17.1;1 Introduction;461
17.1.1;1.1 Wealth in Islam;462
17.1.2;1.2 Wealth Management from Islamic Perspective;464
17.1.3;1.3 Key Growth Drivers for Islamic Wealth Management;466
17.1.4;1.4 Islamic Will Writing;468
17.1.5;1.5 Islamic Investment Funds;470
17.1.5.1;1.5.1 Equity Funds;471
17.1.5.2;1.5.2 Ijarah Funds or REITs;472
17.1.5.3;1.5.3 Islamic Commodity Funds;474
17.1.6;1.6 Islamic Investment Funds Statistics;475
17.1.7;1.7 Islamic Wealth Management—The Way Ahead;478
17.1.8;1.8 Challenges;479
17.1.9;1.9 Summary;480
17.2;References;481
18;Index;484