The Evolution of Islamic Finance and Financial Institutions

“If we cut up beasts simply because they cannot prevent us and because we are backing our own side in the struggle for existence, it is only logical to cut up imbeciles, criminals, enemies, or capitalists for the same reasons” (Lewis, Page Unknown). When C.S Lewis wrote this in an essay on ethics, of which eugenics is a highly debated topic, eugenics was an uprising idea that many members of the intelligentsia agreed with. Eugenics is the idea of controlling human breeding, an idea that is highly controversial and typically looked down upon, but is rising in the modern era. Some groups are being forced to use in vitro fertilization to avoid disease; quite a contrast to the idea that science may be going pushing its limits, as presented in Mary Shelley’s Frankenstein. On the other hand, akin to Victor Frankenstein’s ideas, many groups may be amplifying the eugenics movement when they prescreen births.

A rule making body issues authorative shari’a auditing standards for all Islamic banks and other Islamic businesses and it will be the most effective way to eliminate problems within the Islamic economy. The most effort to develop a body of consistent standards for shari’a audits has been undertaken by

A wide variety of theories and methods attempt to explain early childhood learning and development. Erickson and Maslow both have theories that focus on social and personality development, as well as a person’s motivation to learn throughout their lives. Their theories are helpful in understanding Jeannette Walls’ development of self. Erickson and Maslow also help clarify why her mother, father, and living in New York City were such influential factors in the development of Jeanette’s sense of self.

MAIL (Mate Australian Islamic Loans) is an organisation created with young Australian Muslims in mind. It aims to help young Australians get Islamic compliant home loans and car financing without having to do any complicated research about the rules and regulations that allow loans to be Sharia compliant in Australia – this means that they can be assured that they can borrow the money they need without contravening their religious principles.

Analysis Mos Def once explained that “the ability to have somebody read something and see it, or for somebody to paint an entire landscape of imagery with just sheets of words- that’s magical”. This quote displays the importance of imagery and its function in literature. Imagery is the use of descriptive details that appeals to the readers’ senses. The “Iliad” by Homer is an epic poem with many examples of imagery.

After the researches, we had decided to choose the Islamic insurance, Takaful as our Islamic financial instrument and Conventional Insurance as the conventional product for comparison. The first fatwa that explicitly prohibited profitmaking insurance in its modern application and its related activities was made by Ibn Abdeen (a Syrian Scholar) in 1834. While opinions are vary among Muslim scholars, the overwhelming majority of them have concluded that conventional insurance contracts are unacceptable to Islam. There are a number of significant differences between both of these. Therefore, we will first compare by using the structured table as below.

This study is undertaken to understand the concept and features of Islamic banking and conventional banking, the similarity and differences between the two systems and their economic implications. Generally, a financial institution or a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets is given the name of bank. its source of generating revenue and cost of funds is charging of interest through lending and also accepting deposits for interest respectively. Interest is the major driver of operations of conventional banks although other valuable services including guarantees, funds transfers, safety of wealth, facilitation in international trade etc., also form a substantial part of income of banks.

The pairing of Islamic Finance and crowdfunding could quite possibly evolve the current American Islamic mortgage product from that whose emphasis is almost solely focused on interest aversion into a product that embraces Islamic fundamentals. Such an Islamic finance vehicle, consistent with the sharing economy methodology, would conform with ALL

Despite of increased attention on Islamic banks, recent studies have evidenced mixed result on the stability of Islamic banks over its conventional counterparts (Belouafi et al. 2013; Kassim & Abd. Majid 2010; Rokhim & Gamaginta 2009; Bourkhis & Nabi 2013). Thus, indicates that there is non-consensus on the stability of Islamic banks over its conventional counterparts.

The Accounting and Auditing Organization for Islamic Financial Institutions established on Safar 1, 1410 Hijri (February 26, 1990) at Algiers and registered in Bahrain on Ramadan 11, 1411 Hijri (March 27, 1991) has so far (April, 2004) set the following Financial Accounting Standards, Auditing Standards, Governance Standards & Code of Ethics for Accountants & Auditors of Islamic Financial Institutions:

Similarly, Mobarek & Kalonov (2014) provided empirical evidence, using two frontier approaches, from many OIC countries to compare Islamic and conventional banking. They found that though conventional banks more efficient in their operations, Islamic banks had an upper hand when it came to financial stability. Their extensive study covered pre-crisis and crisis periods. The finding of Mobarek & Kalonov (2014) is validated by an earlier study conducted by Al-Hares, AbuGhazaleh, & El-Galfy (2013) in which they studied banks from 2003-2011. Al-Hares, AbuGhazaleh, & El-Galfy (2013) found that Islamic banks in Gulf Cooperation Council (GCC) were less efficient than

The failures and bailed out of large banking and financial institutions during economic turmoil of 2008-2009, is an emblematic of the excessive and imprudent lending and securitisation activities. Most economist, politicians and commentators referred the crisis being a reminiscence of capitalism and its inherent greed. The conventional economics, which ignored “centrality of human beings and their well-being” (Asutay, 2007), has led to the emerging calls for economics well-being thus contributed to the rapid development in Islamic finance globally. Reilly (1990) commented that this “phenomenon is the search for a new and just economic and political structure to replace the unacceptable and/or unworkable socialistic or capitalistic systems” or in other words, a moral economy. The discussion hereafter is to look at how moral economy is defined, the articulations and implications and whether Islamic economics as being grounded on the axioms and foundational principles of Islam, can be considered as moral economy from both aspirational expectations and operational aspect of it, thus served as a distinctive moral economy system.

To invest in Shariah-compliant listed equities to provide the capital growth over the medium to long term through the diversified, but growth-oriented portfolio.

In this case study on investment-linked takaful, there are some shariah issues. The following are some but not limited Shariah issues at the conception of the contract, the fund management and at the level of distribution of profit.

However, the flexibility and development cash waqf are debated by Muslim jurists and scholar due to certain conceptual argument concerning perpetuity and inalienability (Mohammad et al., 2005). Because of the property must be tangible property (maal) and capable of being used without being consumed. This situation was clarified by the Waqf Validating Act of 1913, which permitted a waqf of “any property” including the movables, i.e., shares in joint stock companies, notes and even cash (Suhrawardy, 1991). This figure illustrates the mechanism effect of waqf