The Essentials of Islamic Banking, Finance, and Capital Markets

John Oluseyi Kuforiji

doi:10.5771/9781666901047

Summary

This multidisciplinary book on Islamic finance covers Islamic economic, financial, and legal systems, insurance (takaful), commercial jurisprudence, and the socio-political and political-economy of the Islamic world. It examines the dichotomies and similarities between Islamic and conventional financial systems and suggests future roles and governance of Islamic financial institutions. Distinctive features of the second edition include an emphasis on the theoretical foundations of Islamic finance, the distinctions between the micro- and macroeconomic concepts and theories to the readers, and an expansion on Islamic approved forms of trade dealings, transactions, and contracts. Furthermore, this work discusses the newly introduced Islamic capital market products of the years 2020 to 2022—including the transition from the inter-bank-offer-rates (IBORs) as global benchmark lending rate to the new risk-free-rates (RFRs) that became effective on January 1, 2022—and discusses the transition of Saudi Arabia Monetary Agency to Saudi Central Bank in 2020. Though every effort is made to avoid tedious mathematical proof and derivatives, this work provides working calculations for the pricing of Islamic instruments and provides supplemental materials in the form of faculty resources and students’ study guide and workbook. This work acts as a useful textbook for graduate and advanced undergraduate students who are looking at broadening their knowledge in finance. Similarly, this book is a helpful guide and tool for financial practitioners who are interested in learning more about the innovative discipline of Islamic finance. For financial practitioners to drive maximum benefits from this innovative financing mechanism, they need to know, understand, and participate in the investment opportunities which are provided by Islamic finance.

Keywords

Search publication

Bibliographic data

Copyright year: 2022
ISBN-Print: 978-1-6669-0103-0
ISBN-Online: 978-1-6669-0104-7
Publisher: Lexington, Lanham
Language: English
Pages: 356
Product type: Book Titles

1. Dedication No access
2. Contents No access
3. 1. Organization and Contents No access
  2. Key Features of the Second Edition No access
4. Acknowledgments No access
1. 1. Society as a Whole No access
  2. Arabian Society No access
  3. Islamic Society No access
  4. Chapter Summary No access
  5. Problems and Applications No access
2. 1. Definition, Goals, and Objectives of Islamic Laws No access
  2. The Goals and Objectives of Islamic Laws No access
  3. Origins and Evolution of the Islamic Laws No access
  4. Fundamental Sources of Islamic Legislation No access
  5. Types of Islamic Laws No access
  6. Chapter Summary No access
  7. Problems and Applications No access
3. 1. The Phases of the Islamic Economic Thoughts No access
  2. The Theoretical Foundations of the Islamic Economic Thoughts No access
  3. The Islamic Microeconomic Principles, Thoughts, and Theories No access
  4. The Islamic Macroeconomic Principles, Thoughts, and Theories No access
  5. Islamic versus Contemporary SPE Systems No access
  6. Chapter Summary No access
  7. Problems and Applications No access
4. 1. Sources of the Islamic Business, Banking, and Finance Laws No access
  2. Islamic Investment Guiding Principles No access
  3. Islamic Approved Forms of Trade Dealings, Transactions, and Contracts No access
  4. Financial Contracts No access
  5. Types of Business Laws No access
  6. The Dichotomy between the Islamic and Conventional Finance Laws No access
  7. Chapter Summary No access
  8. Problems and Applications No access
1. 1. Background on Idea of Interest No access
  2. Interest Rate in the Conventional Economy No access
  3. Noninterest Islamic Investment Theoretical Framework No access
  4. RFRs as Benchmarks in the NoNinterest Banks No access
  5. Toward the Theoretical Islamic Interest Rate Structure No access
  6. The Transition from IBOR to RFR Benchmark Rates No access
  7. Chapter Summary No access
  8. Problems and Applications No access
2. 1. Structure of the Islamic Central Banks in Countries with or without 100% Islamic Banking No access
  2. Goals, Objectives, and Functions of the Islamic Central Banks No access
  3. Islamic Central Banks’ Monetary Policies and Instruments No access
  4. Islamic Central Banks’ Monetary Instruments and Structure in the Absence of Interest No access
  5. Chapter Summary No access
  6. Problems and Applications No access
3. 1. The Emergence of the Modern Islamic Banking System No access
  2. The Functions of the Islamic Banking and Financial Institutions No access
  3. The Guiding Rules, Principles, Objectives, and Definition of the Islamic Bank and Finance Institutions No access
  4. Factors Responsible for the Growth of the Islamic Banking and Financial Institutions No access
  5. The Components of an Islamic Banking System Structure No access
  6. Chapter Summary No access
  7. Problems and Applications No access
4. 1. Islamic Commercial Bank Sources of Funds No access
  2. Islamic Commercial Bank Uses of Funds No access
  3. Islamic Bank’s Retailing, Corporate, and Investment Services No access
  4. The Dichotomies between Interest and Riba No access
  5. Dichotomies between Islamic and Conventional Banks No access
  6. Chapter Summary No access
  7. Problems and Applications No access
1. 1. Historical Development, Principles, and Roles of the Islamic Non-depository Financial Institutions and Instruments No access
  2. The Roles of the Islamic Non-depository Financial Institutions and Instruments No access
  3. The Organizational Structure of the IFIs No access
  4. Chapter Summary No access
  5. Problems and Applications No access
2. 1. The Products and Services of Selected Islamic Non-depository Financial Institutions No access
  2. Concerns on the Islamic Financial Products and Services No access
  3. Chapter Summary No access
  4. Problems and Applications No access
3. 1. The Historical Development, Goals, Function, Roles, and Governing Principles of the Islamic Money Markets No access
  2. The Structure of the Islamic Money Markets No access
  3. The Structure of the Islamic Money Market Instruments No access
  4. Pricing and Yields Calculations of Key Islamic Money Market Instruments No access
  5. The Dichotomies between the Islamic and Conventional Financial Money Markets No access
  6. Chapter Summary No access
  7. Problems and Applications No access
  8. Appendix to Chapter 11—Answers to Calculation Problems No access
4. 1. The History, Emergence, and Development of the Islamic Insurance (Takaful) No access
  2. The Takaful Insurance Guiding Principles No access
  3. The Definition and Characteristics of the Islamic Insurance (Takaful) No access
  4. The Takaful Insurance Structure and Models No access
  5. Chapter Summary No access
  6. Problems and Applications No access
5. 1. The Islamic Insurance Products and Services No access
  2. The General Takaful Insurance Products and Services No access
  3. The Dichotomies between Islamic and Conventional Insurance Industries No access
  4. Chapter Summary No access
  5. Problems and Applications No access
1. 1. The Historical Development of the ICMs No access
  2. The Guiding Principles and Definition of the ICMs No access
  3. The Importance and Roles of the ICMs No access
  4. The ICM Structure and Models No access
  5. The ICM Structure by Countries with or without 100% Islamic Banking System No access
  6. The ICM Structure by Capital Market Instruments No access
  7. Chapter Summary No access
  8. Problems and Applications No access
2. 1. The ICM Instruments No access
  2. The Current ICM Securities Products and Services by Countries No access
  3. The ICM Products and Services by the Type of Markets No access
  4. The Islamic Equity or Stock Markets Products No access
  5. The Islamic Funds Markets Products No access
  6. The Islamic Derivative Markets Products No access
  7. The Islamic Bond or Sukuk Markets Products No access
  8. The Pricing Calculation for a Key ICM Instrument No access
  9. The Dichotomies between Islamic and Conventional Capital Markets No access
  10. Chapter Summary No access
  11. Problems and Applications No access
  12. Appendix to Chapter 15—Answers to the Calculation Problem No access
1. 1. The Performance of Islamic Banks No access
  2. The Performance of the IFIs No access
  3. The Performance of the Islamic Insurance (Takaful) Industry No access
  4. The Performance of the ICMs No access
  5. Chapter Summary No access
  6. Problems and Applications No access
2. 1. The Governance and Regulations of the Islamic Banking System No access
  2. The Governance and Regulations of the Islamic Non-depository Financial Institutions No access
  3. The Governance and Regulations of the Islamic Insurance Industry No access
  4. The Governance and Regulations of the ICMs No access
  5. The Islamic General Guiding Rules and Regulations No access
  6. The Unique Domestic or National Rules and Regulations by Some Islamic Countries No access
  7. The International Islamic Organizations No access
  8. Chapter Summary No access
  9. Problems and Applications No access
3. 1. The Problems and Challenges of the Islamic Financial Sector No access
  2. The Potential Solutions and Future Outlook of the Islamic Financial Sector No access
  3. The Future of the Islamic Finance No access
  4. Chapter Summary No access
  5. Problems and Applications No access
References and Further Readings No access Pages 335 - 340
Index No access Pages 341 - 354
About the Author No access Pages 355 - 356