Fundamentals of Islamic Finance and Banking

A comprehensive and fully up-to-date introductory textbook to Islamic finance and banking
 
Islamic finance and banking is being used increasingly globally -- especially in the regions of Middle East and North Africa, South East and South Asia. To cater to the need of trained Islamic finance staff, a large number of Educational institutions are beginning to offer courses, majors and minors in Islamic finance and banking. The major challenge faced by these institutions are suitable textbooks for both undergrad and post-grad levels and especially with the relevant instructor resources (PPTs, test bank, practice activities and answer keys).
 
Luckily, Fundamentals of Islamic Finance and Banking is here to cover the most important topics related to Islamic finance and banking (IF&B) that are relevant for students of business, finance and banking.
* Offers an historical background of Islamic finance
* Covers the principles of Sharia Law as pertinent to finance and banking
* Provides in-depth discussion of the six key Islamic banking products: Murabaha, Mudaraba, Musharaka, Ijara, Salam and Istisna
* Discusses the Islamic insurance (Takaful)
* Gives an overview of Islamic investment, especially Sukuks
* Concludes with the global standing of the Islamic Finance and Banking industry
 
Would-be colleges and universities offering this subject as a course within their finance and/or banking program can't be without this invaluable guide.

List of contents

List of Figures xv
 
List of Tables xvii
 
Acknowledgements xix
 
About the Author xxi
 
Preface xxiii
 
About the Website xxv
 
CHAPTER 1: Introduction to Islamic Finance and Islamic Economics
 
1 Introduction 1
 
Creation of Money and Conventional Finance and Banking 2
 
Definition of Islamic Finance and Banking 3
 
Distinctive Features of Islamic Finance 3
 
Economics and Islam 4
 
Economics in Ancient Times 4
 
Modern Economics 5
 
Islamic Economics 6
 
History of Islamic Economic Thought 6
 
Principles of Islamic Economics 7
 
Islam's Solution to the Classic Economic Problem 7
 
Islam and the Welfare Economy 8
 
Property Ownership in Islamic Economics 8
 
Zakat and Sadaqah 8
 
Ban on Interest versus Cost of Capital in Islam 9
 
Conventional Economics versus Islamic Economics 9
 
Evolution of Islamic Finance 11
 
Early Days 11
 
Birth of Modern Islamic Finance 12
 
Institutional Developments During the Revival of Modern Islamic Finance 12
 
The Mit Ghamr Experiment 13
 
Tabung Haji 13
 
Islamic Development Bank 14
 
Dubai Islamic Bank 14
 
Rapid Growth of the Islamic Finance and Banking Industry 14
 
Islamic Finance and Banking in Muslim Communities and Countries 15
 
Islamic Finance and Banking in Non-Muslim Countries 16
 
Sub-sectors in the Islamic Finance and Banking Industry 16
 
Current Status of Modern Islamic Finance and Banking 17
 
Timeline of Development of Contemporary Islamic Finance and Banking 18
 
Key Terms and Concepts 21
 
Chapter Summary 21
 
CHAPTER 2: Shariah Law and the Shariah Supervisory Board 27
 
Introduction to the Islamic Law - Shariah 27
 
Sources of Shariah 28
 
Schools of Islamic Jurisprudence 29
 
Ethics in Shariah-Compliant Business and Finance 30
 
Major Shariah Prohibitions and Principles and their Implications 31
 
Prohibition of Interest or Riba 31
 
Prohibition of Uncertain Dealings or Gharar 32
 
Prohibition of Speculative Behaviour or Maysir 33
 
Shariah Supervisory Board (SSB) 34
 
Introduction to the SSB 34
 
Formation of the SSB 35
 
Status of the SSB Within the Industry 36
 
Functions of the SSB 36
 
Corporate and Shariah Governance 38
 
Shariah Governance Process 38
 
Key Terms and Concepts 39
 
Chapter Summary 39
 
CHAPTER 3: Islamic Banking versus Conventional Banking 47
 
Introduction to Islamic Banking 47
 
Islamic Banking versus Conventional Banking 49
 
Similarities Between Conventional and Islamic Banks 49
 
Differences Between Conventional and Islamic Banking 49
 
Relationship with the Central Banks 50
 
Risks of Banks - Generic and Specific to Islamic Banks 51
 
Generic Risks 51
 
Risks Specific to Islamic Banks 52
 
Financial Intermediation 54
 
The Definition of Financial Intermediation 54
 
Conventional Financial Intermediation 54
 
Islamic Financial Intermediation 54
 
Islamic Financial Intermediation Models 56
 
Distribution of Islamic Banking Products 58
 
Conventional versus Islamic Financial Intermediation 58
 
Balance Sheet of an Islamic Bank - Sources and Uses of Funds by an Islamic Bank 59
 
Sources of Funds 59
 
Application of Funds 60
 
Contracts in Shariah Law 61
 
Contracts of Exchange in Shariah-Compliant Commerce and Financ

About the author

SYEDA FAHMIDA HABIB, is currently an instructor at the School of Continuing Studies, York University, Toronto, Canada, specializing in finance, financial accounting and Strategic Management. Prior to this, she served as a senior lecturer at the Higher Colleges of Technology (HCT), UAE, for 19 years, specializing in various finance courses and especially involved in developing and team leading Islamic Finance and Banking. She holds an MBA, a Masters in Applied Finance and a DBA, is a member of CISI, and of the Institute of Islamic Banking and Insurance, London. She has written six books in the areas of finance, which were adopted as primary texts for HCT courses in the areas of Introduction to Finance, Financial Services Marketing in the Arab World and Personal Finance in the Arab World.

Summary

A comprehensive and fully up-to-date introductory textbook to Islamic finance and banking

Islamic finance and banking is being used increasingly globally -- especially in the regions of Middle East and North Africa, South East and South Asia. To cater to the need of trained Islamic finance staff, a large number of Educational institutions are beginning to offer courses, majors and minors in Islamic finance and banking. The major challenge faced by these institutions are suitable textbooks for both undergrad and post-grad levels and especially with the relevant instructor resources (PPTs, test bank, practice activities and answer keys).

Luckily, Fundamentals of Islamic Finance and Banking is here to cover the most important topics related to Islamic finance and banking (IF&B) that are relevant for students of business, finance and banking.
* Offers an historical background of Islamic finance
* Covers the principles of Sharia Law as pertinent to finance and banking
* Provides in-depth discussion of the six key Islamic banking products: Murabaha, Mudaraba, Musharaka, Ijara, Salam and Istisna
* Discusses the Islamic insurance (Takaful)
* Gives an overview of Islamic investment, especially Sukuks
* Concludes with the global standing of the Islamic Finance and Banking industry

Would-be colleges and universities offering this subject as a course within their finance and/or banking program can't be without this invaluable guide.

Product details

• Authors: Sf Habib, Syeda Fahmida Habib
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Paperback / Softback
• Released: 31.07.2018
• EAN: 9781119371007
• ISBN: 978-1-119-37100-7
• No. of pages: 320
• Series: Wiley Finance; Wiley Finance Editions; Wiley Finance; Wiley Finance Editions
• Subjects: Social sciences, law, business > Business > Business administration; Finanzwesen, BUSINESS & ECONOMICS / Finance / General, Allg. Finanz- u. Anlagewesen, Finance & Investments, Finanz- u. Anlagewesen, Islamisches Finanzwesen, Finance and the finance industry