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Islamic Banking

Growth and Diversification in Islamic Finance

The contemporary Islamic finance industry is now in its fourth decade and, during that period, has developed extremely rapidly. In the past few years, overall market growth has been estimated at between 15-20 percent annually1, although individual Islamic banks have reported even faster growth.

Terms of Investment

A lexicon of Islamic finance

Muslim Americans

The Pew Research Center is a nonpartisan "fact tank" that provides information on the issues, attitudes and trends shaping America and the world. It does so by conducting public opinion polling and social science research; by reporting news and analyzing news coverage; and by holding forums and briefings. It does not take positions on policy issues.

Islamic Banking

Islamic banking is a new phenomenon that has taken many observers by surprise. The whole banking system has been islamized in both Iran and Pakistan.

Global Strategies for IslamiGlobal Strategies for Islamic Banking and Finance

Integrate into global financial markets or develop parallel system?

A case study of equity REITs

Publicly traded companies that buy, develop, manage, maintain, and (rarely) sell real estate properties.

Western Regulatory Concerns about Islamic Banks

OCC #867, 1999 : “… lending takes many forms … Murabaha financing proposals are functionally equivalent to, or a logical outgrowth of secured real estate lending and inventory and equipment financing, activities that are part of the business of banking.”

Peddling Religion?

Islamic law (Shariah) does not require that the seller of a product be Muslim, or that its other services be Shariah compliant as well. This is the considered opinion of our Shariah Supervisory Committee.

A Call for Mutuality in Islamic Finance

Can one extend the analysis to say that the credit component should be noncommutative (minimal net interest income)?

A Simple Fiqh-and-Economics Rationale for Mutualization in Islamic Financial Intermediation

Islamic finance is a prohibition-driven industry, aiming to avoid the prohibitions of riba and gharar. It is well accepted in Islamic jurisprudence that riba and gharar do not affect the legal validity of non-commutative financial contracts.

Mutuality as an Antidote to Rent-Seeking Shari`a-Arbitrage in Islamic Finance

The theory of Islamic banking is often attributed to Uzair (1955), and later literature that focused on a mutual-fund style double-tiered silent partnership model, c.f. Siddiqi (1983).

Macro vs. Micro-Considerations in Islamic Financial Ijtihad

Islamic finance started with mutual-fund (mudaraba-based) model of financial intermediation, highly inefficient due to information asymmetries.

The Economics of 21st Century Islamic Jurisprudence

Most observers of the Islamic Finance movement over the past two decades will acknowledge (and perhaps lament) the great rift between the early and current literature on “Islamic Economics” on the one hand, and the reality of Islamic Finance on the other. In this regard, I would like to present a simple explanation of this difference.

A Basic Guide to Contemporary Islamic Banking and Finance

This introductory guide is meant to address the Muslim who is familiar with the fundamental tenets and sources of legislation in Islam. The reader is not assumed to have elaborate prior knowledge of Islamic nancial contracts, but a certain degree of nancial sophistication will be required.

“Interest” and the Paradox of Contemporary Islamic Law and Finance

Almost all contemporary writings in Islamic Law and/or Islamic finance proclaim that Islamic Law (Sharia) forbids interest.

Islamic Bank Corporate Governance and Regulation: A Call for Mutualization

Sheikh Kamel does not fancy the word customer or depositor and prefers to use the term ‘partner’. “Those people who place their money in Al-Baraka bank or any other Islamic bank are considered shareholders of these banks. This means if these banks prosper so will they”.

Islamic Financial Engineering vs. Architecture

Conventional banks charge and pay interest, and the HSBC Group, or which we are a part, is a conventional bank.

Islamic Jurisprudence: Out of the Books and out of the Box

“Often the true grounds of legal decision are concealed rather than illuminated by the characteristic rhetoric of opinions.

Limits and Dangers of Shari`a Arbitrage

Islamic Finance as it exists today is a prohibition-driven industry, which attempts to provide Muslims with permissible analogues of conventional financial services and products that are generally deemed impermissible in Islamic jurisprudence.

An Economic Explication of the Prohibition of Rib¯a in Classical Islamic Jurisprudence

The prohibition of Rib¯a in Isl¯am is perhaps the topic most studied in Islamic Economics and Jurisprudence of financial transactions. Therefore, any attempt to provide a fresh perspective on this issue must seem initially to be futile.

Methods of Islamic Home Finance in the United States

The domestic Islamic community in the United States is increasingly demonstrating the depth of its numbers. Unlike any other newly emerging community, a consistently large block1 of Muslims seeks to regulate their affairs according to Islamic rules.

A Basic Guide to Contemporary Islamic Banking and Finance

This is not a full survey of the field, and it is not a religious guide. It is the work of a single individual, who does not claim any religious authority beyond that which is derived from quoted texts.

Corporate governance in Islamic banks

Corporate governance in banking has been analysed almost exclusively in the context of conventional banking markets. For example, there has recently been some discussion of the role 'market discipline' exerted by bank shareholders and depositors in constraining the risk taking behaviour of bank management.

Regulation and Supervision of Islamic Banking in the United States

Remarks at the 2005 Arab Bankers Association of North America (ABANA) Conference on Islamic Finance: Players, Products & Innovations in New York City.

Regulation of Islamic Financial Services in the United States

Before the Seminar on Legal Issues in the Islamic Financial Services Industry.